Build with Leila Hormozi: Episode Summary

Title: 3 Steps To Dealing With A Cancerous Teammate | Ep 233
Host: Leila Hormozi
Release Date: January 27, 2025

Introduction

In Episode 233 of Build with Leila Hormozi, titled "3 Steps To Dealing With A Cancerous Teammate," Leila delves deep into the detrimental impact of toxic team members—referred to as "cancerous teammates"—and provides a structured approach for leaders to effectively identify and eliminate these negative influences from their organizations. Drawing from her extensive experience in scaling businesses and fostering robust corporate cultures, Leila emphasizes the critical importance of swift action to preserve team morale, productivity, and company reputation.

Understanding Cancerous Teammates

Leila begins by defining what constitutes a cancerous teammate. She likens such individuals to biological cancer—destructive, spreading negativity, and posing a significant threat to the overall health of the organization.

Leila Hormozi [00:00]: "Keeping cancerous teammates around is literally the most expensive mistake that you could make. They kill productivity, they destroy morale, and they push away your best people."

She explains that even with a strong company culture, the presence of toxic individuals can erode the very foundations that make a business successful. However, businesses with resilient cultures don't necessarily avoid these toxic individuals but are adept at handling them when they appear.

The Importance of Prompt Action

Leila underscores the necessity of addressing toxic team members swiftly. Delaying action allows the negativity to fester and spread, causing irreparable damage.

Leila Hormozi [05:30]: "One toxic teammate can reduce team productivity by 30 to 40%. They are not just dragging themselves down. They pull everybody else down with them."

She draws a parallel between dealing with toxic teammates and treating biological cancer—early detection and removal are paramount to prevent widespread harm.

Three Steps to Addressing Cancerous Teammates

Leila outlines a three-step process to effectively manage and eliminate toxic individuals from a team:

1. Identify the Problem Quickly

Recognizing the signs of a cancerous teammate is the first crucial step. Leila advises leaders to be vigilant and observant of patterns that indicate toxicity.

Leila Hormozi [12:45]: "Look for patterns, look at gossip, look at laziness, look at entitlement, look at overall negativity."

She emphasizes the importance of pulling the thread whenever a negative behavior is observed, ensuring that issues are addressed before they escalate.

2. Address It Directly

Once identified, confronting the individual about their behavior is essential. Leila insists that leaders must communicate clearly and professionally about the unacceptable actions.

Leila Hormozi [20:15]: "This person is sabotaging teammates. This person is speaking ill of teammates. This person is shit talking people on our team. This is the opposite of our culture."

By having a one-on-one conversation, leaders can either provide the individual a chance to reform or recognize that the person is beyond repair. This step maintains transparency and sets a precedent for acceptable behavior within the team.

3. Take Fast Action

After addressing the issue, decisive action must be taken to remove the toxic individual if there's no improvement. Leila warns against hesitancy, highlighting that prolonged exposure only exacerbates the problem.

Leila Hormozi [27:50]: "The longer you let them stay, the more damage they cause. And so you need to act fast."

She shares an anecdote where removing a toxic team member led to a celebration from the rest of the team, reinforcing the positive impact of such decisions.

Why Leaders Delay Taking Action

Leila explores the common reasons why leaders often postpone dealing with toxic teammates:

1. Fear of Confrontation

Many leaders dread the discomfort of having difficult conversations. The fear isn't necessarily about losing the team member but about the potential fallout from the confrontation.

Leila Hormozi [37:20]: "It's a lot of times you have to let somebody go. It's not that you fear not having them. It's that you fear the five minute have to let them go conversation."

2. Overly Optimistic Expectations

Some leaders hold onto the hope that toxic individuals will improve without intervention. Leila debunks this optimism with statistics.

Leila Hormozi [42:10]: "Only 4% of toxic or sabotaging employees improve without direct intervention."

She stresses that waiting for a miracle often leads to greater losses in team integrity and productivity.

3. Ego and Self-Doubt

Leila acknowledges that leaders might feel that firing someone reflects poorly on their hiring abilities. However, she argues that the ability to correct course is what builds trust and respect.

Leila Hormozi [48:35]: "The test is how quickly are you willing to fix it. And when you do, your team is going to trust you, morale is going to go up, and you reestablish yourself as a leader who protects the culture."

Benefits of Removing Cancerous Teammates

Eliminating toxic team members has profound positive effects on the organization:

• Enhanced Teamwork: Studies indicate a 54% improvement in teamwork after removing toxic individuals.

• Reduced Stress Levels: An 80% reduction in stress is observed among remaining team members.

• Strengthened Company Culture: The removal fosters a more positive and productive work environment.

Leila Hormozi [35:50]: "If you remove a cancerous employee, there will be a 54% improvement in teamwork and an 80% reduction in stress levels for the rest of the team."

These benefits not only improve the daily work experience but also bolster the company's reputation and overall success.

Consequences of Inaction

Failing to address toxic team members can lead to:

• Decreased Productivity: Toxic individuals can slash team productivity by up to 40%.

• Lowered Morale: Morale plummets as team members become disengaged and disheartened.

• Damaged Reputation: Clients and customers perceive the company's dysfunction, potentially leading to loss of business.

Leila Hormozi [08:15]: "If your clients sense the dysfunction in your team, it reflects poorly on you."

Such consequences can have long-term detrimental effects, undermining years of hard work and investment in building a strong business.

Conclusion

Leila Hormozi concludes by reiterating the paramount importance of swiftly identifying and removing cancerous teammates to safeguard the company's culture, productivity, and reputation. She urges leaders to confront these issues head-on, emphasizing that the long-term benefits far outweigh the temporary discomfort of difficult conversations.

Leila Hormozi [58:40]: "Keeping cancerous teammates around is literally the most expensive mistake that you could make. They kill productivity, they destroy morale, and they push away your best people."

Leila encourages leaders to take immediate action, protect their teams, and uphold the standards that define their organizational culture.

Key Takeaways

• Swift Identification and Action: Early detection and prompt removal of toxic individuals prevent long-term damage.

• Clear Communication: Addressing issues directly ensures transparency and sets behavioral standards.

• Protecting Company Culture: Maintaining a positive work environment is crucial for sustained success and team morale.

• Leadership Integrity: Demonstrating decisiveness in handling difficult situations builds trust and respect within the team.

Leila Hormozi's insights provide a practical roadmap for leaders grappling with toxic team members, emphasizing that decisive action is essential for building and maintaining an unshakeable business.