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If you haven’t seen the New York Times article “The Long Odds of Reforming an Employee Who Is a ‘Destructive Hero’,” you should take a look.
If there’s someone among your reports who’s brilliant, a rainmaker, but abusive to peers and everyone lower on the hierarchy – sit the person down and be clear that the abusive behavior must stop. Give the person books to read, send him to trainings (make sure they’re useful trainings), hire a coach for one-on one work, whatever it takes to give the person a reasonable chance.
But if the brilliant, rainmaker abuser continues to be abusive, you must fire him. Ultimately, the positive contribution to the organization’s ROI is more than offset by the negatives of time spent responding to complaints, of destroyed engagement, of productivity and innovation lost, of your best talent leaving for other opportunities. If you calculate the value of these negatives, you’ll see that an unreformable abuser isn’t worth it.