Can’t Touch It? Must Not Be Real, Right?

Imagine the worst boss you ever had. The kind of person that you’d rather not see again… ever.

What are the metrics you are using to determine they are the worst boss? Are they 14% worse than the runner up? Are they 38% worse, but that’s because they were polite, but contacting you at all hours (+22% on disposition, -63% on boundaries).

Two things: 1) just because it’s not on the Profit & Loss statement doesn’t mean it’s not important and 2) we CAN measure behavior, we just tend not to or gravitate towards dismissing the results if they’re not favorable.

We just might tolerate mediocre or even poor circumstances because making a change seems far too difficult. Consider the observation that a significant leadership deficit persists globally, impacting agility and succession planning. This shortfall is compounded by the pervasive existence of toxic workplace cultures and a critically underappreciated need to cultivate psychological safety as a foundational element of success. For mid- and upper-management, understanding and proactively addressing these intertwined issues is not just beneficial, but essential for sustained organizational health and a thriving workforce.

Mind the Leadership Gap

The numbers paint a stark picture: a staggering 77% of companies report a leadership deficit across all levels, ranging from frontline managers to executives (apollotechnical.com). This isn't just a talent challenge. Estimates indicate the leadership deficit is costing U.S. companies as much as $550 billion annually in lost productivity. A major contributor to this deficit is the broken pipeline for future leaders, with only 19% of organizations believing their current business leaders are effective at developing others.

This leadership deficit impacts multiple facets of an organization:

• Business Agility & Succession Planning: Without capable senior leaders, organizations struggle to adapt and stay competitive.

• Burnout & Attrition: Nearly 60% of leaders report feeling worn out at the end of the workday. Alarmingly, 42% of millennial managers feel burned out, and almost half are considering leaving their positions (fairplaytalks.com). This exhaustion directly drives leaders out the door, with 44% of those feeling used up by the end of the day planning to leave their current company.

• Employee Trust: Employee trust in managers has sharply declined from 46% to 29% in just two years, fueled by poor leadership skills, lack of transparency, and inadequate support (ddiworld.com).

The misconception that leaders are "born, not made," further limits potential within organizations. In reality, leadership skills, qualities, and effective practices can be cultivated through training and deliberate experience.

As one example, I learned empathy. At this point I have a fairly decent understanding of the experiences of others. Hold this against my younger self who my staff teasingly called, “Robot Sam,” when it came to policy interpretation and implementation. I managed this change on my own over years. But, you don’t have to go it alone.

Companies that prioritize leadership development are demonstrably better positioned for long-term growth. They see a 25% increase in business performance and a 20% boost in overall team effectiveness. Developing leaders involves investing in development programs, mentorship, and constructive feedback to unlock hidden potential.

Furthermore, middle managers are frequently undervalued and misunderstood, despite being the "crucial link" between senior leadership and frontline employees. They occupy a "precarious position" where being in the middle contributes to feeling overwhelmed by their workload. Even the newly promoted folks are considering leaving their roles. Many lack adequate development upon promotion and struggle to balance day-to-day tasks with strategic thinking. 

Senior leaders have a duty to guide and develop them, reducing administrative load, providing decision-making authority, involving them in strategic planning, and offering tailored development. If senior leaders believe they do not have time, talent, or financial resources now, I wonder how they’re going to come up with all of those things when it’s time to fill a recently vacated position.

An ounce of prevention is worth a pound of cure.

Unmasking and Addressing Toxic Culture

A toxic culture isn’t always obvious to leaders (See: fish last animal to discover water), but employees notice and feel it profoundly. Characterized by disrespect, exclusion, unethical actions, cutthroat behavior, and abusive interactions, it leads to greater stress, anxiety, depression, and burnout among workers. When such toxic subcultures are allowed to fester, employees are more likely to disengage, badmouth their employer, or look for another job. 

The MIT researchers identified three key drivers of toxic culture: leadership, social norms, and work design. To initiate a cultural detox, leaders must take proactive steps:

• Leaders Must Positively Lead: Leaders, from the CEO to front-line managers, set the tone. They must be willing to hold themselves and their colleagues accountable for unacceptable toxic behavior. This involves admitting there’s an issue, publicly pursuing solutions, and linking cultural improvements to tangible bottom-line benefits like lower attrition.

• Model Expected Behavior: When leaders act consistently with core values such as integrity, respect, and diversity, it is one of the most powerful predictors of how positively employees rate their corporate culture. Coaching front-line leaders in foundational professional skills (sometimes called, "soft skills") and being clear about expected behavior with consequences is also vital.

• Establish Healthy Social Norms: Rather than implementing a one-size-fits-all approach, allow work groups to define their own social norms for respectful interactions. Managers should explicitly discuss social norms and ways to reduce toxic behaviors.

• Redesign Work to Cut Stress: Stressful jobs are a breeding ground for toxic behavior. While positive work challenges can increase engagement, leaders should focus on reducing red tape, unclear responsibilities, insufficient resources, and meaningless tasks. Clarifying responsibilities and increasing autonomy can also significantly reduce toxic behaviors.

The Foundational Power of Psychological Safety and Trust

At its core, psychological safety means being able to speak up, share ideas, and admit mistakes without fear of being ridiculed by your colleagues. It's about nurturing a work culture where difficult conversations and high expectations are met with support. This foundational element is crucial; when employees feel strongly connected with their organization’s culture, they are four times as likely to be engaged at work, 62% less likely to feel burned out, and 43% less likely to be looking for another job (Deanna deBarra, 2024).

The impact of psychological safety is far-reaching:

• Builds Trust & Reduces Resistance: Empathetic leaders who actively listen and offer support foster a sense of safety and trust. Teams led by trustworthy leaders are 50% more productive and have 40% higher retention rates.

• Encourages Open Communication & Innovation: A culture of empathy promotes transparency, encouraging employees to voice concerns and share ideas without fear of judgment. Open communication is crucial for finding solutions and fostering innovation.

• Smoother Transitions: By addressing emotional needs, empathetic leaders guide teams through change more effectively.

Key indicators of a psychologically safe environment include:

• Mistakes are viewed as learning opportunities, not failures.

• Open communication is actively encouraged, and leaders invite feedback.

• Leaders embrace differences, fostering inclusive environments where people feel comfortable being their authentic selves.

• Team members feel comfortable taking risks and asking for help.

• There is mutual upliftment and no undermining of others' efforts.

Cultivating psychological safety and trust requires intentional effort from all levels of leadership:

• Lead with Empathy: Empathy is not a weakness but a strategic advantage. Emotional intelligence, encompassing self-awareness, self-regulation, empathy, and social skills, is the defining leadership skill of 2025. It helps leaders connect with employees on an emotional level, especially during transitions.

• Transparent Communication: Leaders must clearly explain why changes are happening and provide regular updates. Even when budgets are tight, embracing candor fosters resilience and strengthens relationships, rather than hiding behind numbers.

• Employee Involvement & Empowerment: Encourage employees to share feedback and co-create solutions rather than imposing top-down decisions. Delegating tasks to empower teams not only lightens a leader's load but also fosters growth and accountability in others.

• Normalize Vulnerability & Learning: Leaders can normalize learning from mistakes by regularly holding debriefing sessions focused on improvement, not blame. Sharing their own mistakes openly demonstrates vulnerability and creates a safe space for others to do the same. Embracing all communication, showing that no question is too small or opinion too far-fetched, removes fear.

• Provide Holistic Support: Offer upskilling opportunities, mental health resources, and create platforms to celebrate employee achievements. Recognizing employees' efforts significantly boosts morale and commitment; 69% of employees are willing to work harder when appreciated.

Conclusion

The intertwining challenges of leadership gaps, toxic cultures, and the absence of psychological safety demand proactive, empathetic, and strategic responses from mid- and upper-management. True leadership is about understanding and managing the human aspects of the workplace. By investing in holistic leadership development, actively combating toxicity, and diligently cultivating psychological safety, organizations can transform from within, fostering resilient, engaged, and high-performing teams ready to navigate any challenge and drive sustained success. This path requires commitment but offers profound rewards, enabling leaders to thrive in an increasingly complex world.

It's not woo-woo, it's researched, vetted, and accurate.