Being a leader isn’t just about hitting targets or building high-performing teams—it’s also about making the hard calls no one else wants to make. For Arvin Velasquez Diaz, a Certified Management Accountant (Australia), one of the toughest lessons he’s learned is this: when values and performance clash, integrity must come first.
In an interview with Financial Adviser PH, Diaz shared what most leadership books don’t talk about—the emotional and strategic weight of letting go of people, even those who’ve been with you for years or consistently deliver results.
When Loyalty Isn’t Enough
Diaz once had to terminate a long-time team member who, despite years of service, was no longer meeting expectations. It wasn’t a decision made lightly.
“They had been with us for a long time, and I genuinely wanted them to succeed,” Diaz shared. “But after repeated attempts to coach, support, and adjust, the performance gap was still there—and it started affecting the team.”
It’s a classic leadership challenge: how do you balance compassion with accountability?
Diaz chose transparency. He held honest conversations early, gave clear feedback, and provided opportunities to improve. But when progress stalled, he acted—because allowing one person to fall short without consequences would have sent the wrong message to the rest of the team.
When Talent Becomes Toxic
Another defining moment in Diaz’s leadership journey came when he had to manage a high-performing but toxic team member. They delivered strong results but left a trail of damaged morale and internal tension.
“The hardest part was that their output was excellent,” he said. “But behind the scenes, collaboration suffered. People avoided working with them.”
Despite their productivity, Diaz knew the long-term cost of keeping a toxic employee would be far greater. “You can’t build a strong culture on fear or resentment,” he added.
This is where integrity in leadership comes into play—choosing what’s right, even when it’s unpopular or inconvenient.
The Role of Communication and Listening
For Diaz, conflict resolution begins with early intervention and open dialogue. “I’ve learned that the longer you avoid a problem, the bigger it becomes,” he explained.
He makes it a point to listen first, understand the root of the issue, and work collaboratively toward a solution. Whether it’s a performance issue or a clash between team members, clear communication and empathy are at the core of his leadership playbook.
Evolving Through Feedback and Self-Awareness
Diaz’s management style didn’t develop overnight. It evolved through years of experience, team feedback, and moments of trial and error.
“I’ve made mistakes. But I’ve also grown by being open to feedback—especially the hard ones,” he said.
He now leads with a mix of clarity, consistency, and compassion, focusing not only on results but on how those results are achieved.
“You can’t ask people to do their best if you’re not doing your best to lead them,” Diaz said.
Why Integrity Wins in the Long Run
In today’s fast-paced business world, it’s tempting to prioritize performance over principles. But Diaz warns that this mindset can cost you more than you realize.
“When you protect a toxic top performer, you lose the rest of your team,” he said. “You lose trust, motivation, and culture.”
By leading with integrity, Diaz believes leaders build something far more powerful than short-term wins—they build credibility and loyalty that sustain long-term success.
The Bottom Line
Leadership isn’t just about results—it’s about responsibility. For Arvin Velasquez Diaz, that means standing by your values, even when it means making uncomfortable decisions. Whether it’s letting go of underperformers or addressing toxicity, strong leadership requires courage, communication, and character.
As Diaz puts it: “Anyone can lead when things are easy. But it’s in the tough moments that real leadership shows up.”
