Author: Elena Badea, Managing Director, Valoria Business Solutions

You are a CEO or manager and you have a great team because you have invested time, resources and energy in making it work well. But suddenly, you notice that morale is low, people no longer communicate openly and tensions arise that you cannot immediately explain.

When you dig deeper, you discover that the “center of gravity” is no longer in your hands, the formal leader, but in a colleague who, through personal influence, has become an informal leader. The problem? He is not a constructive one, but a toxic one.

This is a more common situation than most managers think. And, frankly, it is a leadership test that few pass without a headache.

What exactly is a toxic informal leader?

An informal leader is that person on the team who, without having a management title, manages to influence the decisions, behaviors and even the mood of his colleagues. Sometimes, this is a blessing, when his influence is positive. But other times, it becomes a major problem.

A toxic informal leader can:

• Subtly challenge the manager's authority
• Create "backstage" alliances and churches
• Spread negativity, irony or cynicism
• Demotivate people with lines like "it's no use, nothing changes anyway"
• Put personal interests before team goals.

The result? Low productivity, wasted energy and a weakened organizational culture.

Why do these toxic informal leaders appear?

Here are some situations, or ways, in which a toxic informal leader can manifest itself:

• When the formal leader avoids making clear decisions or communicating transparently.
• Competent, even charismatic people, who have their own agendas.
• Frustrated employees who do not feel appreciated and choose to compensate through informal influence.
• When the team is looking for landmarks and someone quickly positions themselves in this role.

For a CEO or manager, it is not important to judge, but to understand the cause. Only then can they intervene effectively.

What should you NOT do in these situations?

Before talking about solutions, let's clarify what doesn't work:

• The hope that "it will resolve itself" is one of the most costly illusions. A toxic informal leader strengthens over time if not managed.
• Brutal, direct confrontation, in public or private, can turn him into a "martyr" and strengthen his position in the eyes of the team.
• Quick removal without explanation. There are cases in which dismissal is the solution, but if you don not prepare the ground, the team is left with resentment and suspicion.

Practical steps to manage the situation

1. Diagnose carefully

The first step is to understand exactly who influences what and how. Observe the team dynamics: Who listens to whom? Who sets the tone in meetings? Who gathers people in the hallways after meetings?

It is important to distinguish between a positive informal leader and a toxic one. Sometimes, what seems like rebellion may just be the voice of a person raising a valid alarm.

2. Separate the person from the behavior

A toxic informal leader is not essentially “bad”. He has skills, energy and social intelligence – otherwise he would not have ended up in this position. The problem is how he uses these qualities. Approach the situation with this distinction in mind.

3. Discuss privately, respectfully

Choose a one-on-one discussion. Avoid vague reproaches (“you are a negativist”) and bring concrete facts:

“I noticed that in meetings you constantly contradict decisions without coming up with alternatives. This creates confusion in the team.”

“During breaks, you mentioned several times that the project has no chance. Colleagues are starting to lose motivation.”

The key is to remain firm but calm. Communicate clearly: behaviors need to change.

4. Channel their energy correctly

An informal leader usually has a desire for recognition and space to express themselves. A practical solution is to offer them constructive roles:

• To be responsible for a clearly defined project
• To be a mentor for newer colleagues
• To bring ideas for solutions to the problems they highlight

In this way, you transform your “opponent” into a controlled ally.

5. Strengthen formal leadership

If the formal leader (you or a direct manager) is perceived as weak or inconsistent, the toxic informal leader will gain ground. This is the time to communicate openly and transparently, make clear decisions and argue for them, provide quick and constant feedback, and set clear boundaries. The team needs to see that there is valid and solid authority.

6. Create a cohesive team environment

A toxic informal leader thrives in a fertile soil of frustration and lack of cohesion. To neutralize him, work on:

• Clarity in goals: everyone knows where the team is going.
• Fair recognition: appreciate the merits of everyone, not just the “vocals”.
• Transparent rules of the game: acceptable and unacceptable behaviors are clear.

When the team culture is healthy, negative influence has much less room.

7. Decide firmly when there is no way back

There are situations in which, regardless of your efforts, the toxic informal leader refuses to collaborate and continues to undermine the team. In this case, you must choose either to move him to another role, where the impact is lower, or let them go.

The decision is not easy, but sometimes it is the only way to protect the team and the organization.

Some examples encountered in practice

1. The “Someone Knows Better” case

A senior specialist constantly mocks his manager, and his colleagues begin to see him as the “real expert.” The solution? The manager offered him a mentoring role and responsibility for a project. This channeled his energy positively, and the team’s respect for the manager increased.

2. The “Pessimistic Boss” case

A long-time employee was constantly spreading the idea that projects had no chance of success. The CEO had a one-on-one discussion with him, in which he listened to him. Then he explicitly asked him to come up with solutions when he criticized. After a few weeks, the tone changed and the team began to listen to him differently.

3. The “Total Blockage” case

An informal leader continued to create conflicts and undermine the manager, even after several discussions and attempts at integration. In the end, the company decided to let him go. Although it was difficult at the time, team morale improved noticeably and productivity increased.

Lessons for CEOs and managers

• Informal influence is inevitable. You can not eliminate it, but you can guide it.
• Toxicity is not solved by silence, because ignoring it amplifies the problem.
• Positive channeling is better than exclusion. Even negative energy can be transformed into something constructive.
• Formal authority must be supported by communication, transparency, and clarity.
• In a healthy culture, toxic informal leaders do not take root.

In conclusion

Having a toxic informal leader on the team is one of the most challenging situations for a manager or CEO. Managed correctly, this situation can become a catalyst for strengthening formal leadership and building a healthier organizational culture.

Do not fight people, fight behaviors. Above all, do not be intimidated by informal influence when you have the vision and direction of the team in your hands.

About Valoria

Valoria is a consulting, training, and executive coaching company. Through our services, we help entrepreneurs to grow their business and make success concrete and predictable. Companies turn to us for marketing, human resources and sales consulting. We often respond to requests for training or coaching of management teams. Competence, trust, innovation and passion are the values we uphold in everything we do. We build long-term partnerships and collaborations, because we offer guaranteed results and the best quality, at the right price. Find out more at: www.valoria.ro.