The Risky Manager: How Much Is That Revenue Generator Really Costing You?

Let me ask you something.

You have a manager who brings in revenue. A lot of revenue.

They’re commercially successful. They know the business. They have client relationships. They deliver results.

Wonderful.

Except they also repeatedly ignore company policies, treat employees disrespectfully, engage in conduct that borders on harassment, undermine colleagues, disregard management direction and seem to believe that the rules simply don’t apply to them.

They’ve been spoken to.

Warned.

Coached.

Perhaps even formally disciplined.

And yet, here they are. Still doing it.

Why?

Because management is afraid to lose them.

Well, I have a question for management: Have you actually calculated what this person is costing you?

Because I suspect your spreadsheet is missing a few rather important numbers.

The Revenue Is Visible. The Damage Isn’t.

Let’s face it. Revenue is easy to measure.

Sales figures. Client accounts. Profit margins. Quarterly targets.

You can put all of that into a spreadsheet and present it at the next board meeting. Good for you.

But what about the employees who quietly leave because they can no longer tolerate this manager?

What about the people who stop speaking up because they know nothing will happen?

What about the employee who spends half their day managing around someone else’s behaviour?

What about the manager who is exhausted from trying to contain the damage?

What about recruitment costs, lost productivity, disengagement, sick leave, workplace complaints, investigations and the time senior leadership spends dealing with the fallout?

Those costs are real.

They just don’t appear under a convenient line item called “The Cost of Protecting Our Favourite Problem.”

And that’s precisely why organizations continue to make this mistake.

They measure the revenue.

They ignore the real cost of toxic talent.

“But We Can’t Afford to Lose Them.”

Really? You can’t afford to lose them?

Or you simply don’t want to deal with the consequences of losing them?

There is a difference.

I understand that losing a major revenue generator can be difficult. I’m not suggesting that every difficult manager should be shown the door because someone doesn’t like their personality.

Business decisions are complicated.

But there is a very big difference between someone who is demanding, direct, or occasionally difficult; and someone who repeatedly disregards policies, disrespects people, ignores warnings and creates ongoing workplace risk.

The latter is not simply a personality issue.

It’s an accountability issue.

And if leadership has repeatedly addressed the behaviour without meaningful improvement, the organization needs to stop pretending that another conversation will magically fix everything.

At some point, you, the leader, the manager — need to make a decision.

The Manager Who Gets a Pass Is Teaching Everyone Else a Lesson

This is where the damage really begins.

Your employees are watching.

They see the manager who gets away with behaviour that would result in discipline for everyone else.

They see policies enforced selectively.

They see complaints dismissed because the person involved is commercially valuable.

They see leadership talk about respect, professionalism, accountability and workplace culture.

And then they see leadership do absolutely nothing.

What do you think they conclude?

That the policies are meaningless?

That respect is optional?

That revenue matters more than people?

That speaking up is pointless?

You don’t need to send a memo explaining your organizational values.

Your actions have already done that.

Your culture is not defined by the policies you write. It is defined by the behaviour you tolerate.

And if you tolerate repeated misconduct because someone makes money for the business, don’t be surprised when everyone else starts questioning your credibility.

Repeated Warnings Are Not a Substitute for Action

This one really gets me.

The organization knows there is a problem.

There have been complaints.

There have been conversations.

There have been warnings.

Perhaps there has even been a costly investigation – maybe even two.

And yet the behaviour continues.

So, what exactly are we doing here?

Collecting warnings like loyalty points?

If you have identified inappropriate behaviour, communicated expectations, provided a reasonable opportunity to improve and the conduct continues, then management needs to consider what comes next.

That may involve further discipline, a formal performance-management process, leadership intervention such as executive coaching and management training, restrictions on responsibilities or termination.

The appropriate response depends on the facts, the seriousness of the conduct, the employee’s history, the applicable policies and the legal obligations involved.

But doing nothing should not be the default.

And please don’t confuse “we’ve addressed it” with “we’ve resolved it.”

If the behaviour continues, you haven’t resolved it.

You’ve tolerated it.

And No, Every Complaint Is Not Harassment

Let’s be clear about something.

Not every rude comment, disagreement, difficult interaction or management decision constitutes harassment.

Employees can be held accountable. Managers can set expectations. Difficult conversations are part of running a business.

But repeated disrespect, intimidation, humiliation, bullying, discriminatory conduct or other inappropriate behaviour cannot simply be brushed aside because the individual involved is a high performer.

When allegations may involve harassment, discrimination, retaliation or other serious misconduct, employers need to assess whether a formal investigation is required and follow the appropriate process.

That may mean an independent workplace investigation.

It may mean independent HR support.

It may mean legal advice.

What it absolutely does not mean is deciding in advance that the complaint is inconvenient because the manager is too valuable to lose.

The person’s revenue should never determine whether the complaint deserves to be taken seriously.

Leadership: This Is Your Problem Now

Here’s the part that senior leaders sometimes find uncomfortable.

If you know a manager is repeatedly engaging in inappropriate behaviour, have received complaints or warnings, and continue to protect that person because of their revenue or status, you are no longer dealing with an isolated employee problem.

You are dealing with a leadership problem.

And potentially a much bigger organizational risk.

You cannot expect employees to follow policies that leadership itself refuses to enforce. Read this again.

You cannot expect managers to behave professionally when the most commercially successful person in the organization is allowed to behave however they please.

You cannot preach accountability and then make exceptions for the people you like, fear or depend on.

That’s not leadership.

That’s hypocrisy with a business plan.

So, What Should You Do?

Before making a decision, take a step back and look at the whole picture.

• Assess the actual conduct. Be specific. What happened? How often? What evidence exists? What policies or expectations were breached?
• Review the history. What warnings, coaching, investigations or disciplinary steps have already occurred?
• Consider the impact. Look beyond the individual’s revenue contribution. What is happening to the team, the workplace and the organization?
• Apply policies consistently. Revenue, seniority and personal relationships should not determine whether workplace standards apply.
• Address the behaviour appropriately. Use a fair, proportionate and defensible process.
• Be prepared to make the difficult decision. If the conduct continues despite reasonable intervention, retaining the individual may no longer be a sensible business decision.

And please, PLEASE involve HR before the situation becomes a full-blown crisis.

Not after three more employees resign.

Not after another complaint.

Not after someone threatens legal action.

Not after 100K in investigation costs.

Before.

Stop Asking Whether You Can Afford to Lose Them

Start asking whether you can afford to keep them.

Because that manager who brings in the revenue? They may also be driving away your best employees, undermining your culture, creating unnecessary legal and HR risk, damaging trust in leadership; and making your organization a place where people simply don’t want to work.

At some point, the numbers need to include all of that on your shiny Excel spreadsheet or your presentation to the Board.

A revenue generator is not automatically a high performer. A manager is not automatically a leader. And neither is entitled to a free pass.

If you have someone in your organization who repeatedly ignores policies, disrespects colleagues, crosses boundaries and continues to do so despite warnings, stop asking yourself how much money they make.

Ask yourself what it is costing you to keep them.

And if leadership already knows the answer but refuses to act?

Well. That’s a whole other problem.