BFA #018 | You're Praising the Wrong Thing

What's happening Fraud Fighters?

I’ve talked about this a few times this week, so it must be pretty top of mind for me.

A lot of people misunderstand the behaviors you’re rewarding when you give your team praise

Let's investigate further.

Read Time: ~4.01 Minutes

One Important Question

Can You Answer This One Essential Question?

Think for a moment. How do you like to receive your praise and criticism?

This isn't a trick question, nor is it one to be dismissed lightly. This question is 100% stolen from someone I’ve worked with. But I use it all the time now. It’s such a simple question but completely changes how you will work with anyone.

Beneath its simplicity lies a rich vein of interpersonal understanding. This question is a powerful tool that can completely transform your working relationships and how you engage with others - assuming you actually care about your team in the slightest. It helps unravel the unique set of preferences that each person has when it comes to receiving both praise and criticism.

In a nutshell, it's an essential to understanding and respecting individuality, which, can dramatically enhance your communication and collaboration. Whether in a professional environment or personal life, this question opens the door to more nuanced, empathetic, and ultimately successful relationships.

Let me ask again…

How do you like to receive your praise and criticism?

Is the Outcome Everything?

One day, I discovered a massive group of fraudsters who had been stealing money from the company for a long time.

After figuring out the scheme, my boss, a pretty serious guy, called me into his office. He crossed his arms and said, "Good job on finding the fraudsters." That's all he said. No details, no comments about the late nights I spent analyzing data, or the complex patterns I found. He only focused on the end result - that I found the fraudsters.

I smiled and nodded at him, even though I was a little upset inside. Sure, I had found the fraudsters. But he didn't seem to care about all the hard work that went into it. It was like he didn't see all the effort I put into solving this tricky case.

At that moment, I realized something was missing. My boss recognized what I did, but not how hard I worked to do it.

To this day, I’m still not even sure he understands what actually goes into an investigation…

Give Better Praise

In the world of fighting fraud, the power of recognition is often underestimated and underutilized. Regrettably, many fraud leaders do not provide sufficient recognition, and when they do, it often lacks the required depth and context that truly motivates and validates the front-line investigators.

Consider this example of misdirected recognition: "Great job uncovering that fraud ring!" While on the surface this seems encouraging and positive, it lacks the depth that real, meaningful recognition should encompass.

The issue?

Recognition must go hand in hand with a profound understanding of the actions, strategies, and analytical thinking that contributed to the breakthrough, not merely the end result.

When our appreciation solely highlights the outcome, we stumble into two crucial errors. Firstly, we limit our opportunities to offer recognition. Outcomes, such as fraud cases solved, are finite.

There are only so many fraudulent activities that can be uncovered. But the actions, critical thinking, and strategies employed in getting there occur constantly, providing numerous instances for recognition.

Secondly, by only recognizing the outcomes, we risk sending a message to our team that only the results matter, not the analytical journey and tireless effort. This mindset can stifle creativity, innovation, and the desire to go the extra mile.

Instead, we should be saying, "Fantastic work on uncovering that fraud bring, Brian! Your dedication to investigating those complex patterns is commendable and it's clearly paying dividends. Your detailed analysis in this case was spot on. Excellent work." Even this isn’t really that great of an example, but I think you get the point. I at least hope you do.

This manner of recognition appreciates not just the outcome, but also the specific behaviors and effort that led to the breakthrough.

Imagine being even more proactive and offering this kind of recognition during the ongoing investigation, or find some way to create visibility. "Brian, I just reviewed your report. You identified the irregular patterns with impressive precision, and the way you connected those disparate data points? Absolutely masterful!" Again not a great example, but I know you’ve got it now.

This forward-looking acknowledgment reinforces the behaviors you desire, encouraging a motivated, engaged team that consistently strives for excellence.

By recognizing the behaviors you want to replicate, rather than just the end results, you cultivate a culture of continuous growth and diligence. Just watch the transformation in your team's performance could be truly astonishing.

One Last Tip

Bonus advice for you fraud leaders — and honestly any field

It's important to remember that recognition doesn't come in a one-size-fits-all package. Each team member is unique, their preferences as individuals all the way to their fingerprints.

Some fraud fighters bask in the glow of public recognition, their accomplishments amplified by the applause and acknowledgment of their peers. This public praise can boost their morale and fuel their determination for the challenges to come.

On the other hand, some team members might find such public exposure disconcerting, even intimidating. They might prefer a more personal, one-on-one commendation, away from the spotlight. This quieter, more intimate form of recognition can feel just as, if not more, meaningful to them, respecting their comfort zone while appreciating their hard work and achievements.

As leaders, it is on us to understand and adapt to these preferences. It requires open communication, genuine interest in team dynamics, and the sensitivity to individual comfort levels.

A well-intentioned public recognition, though given with a heart full of gratitude, might unintentionally create discomfort for those who prefer the sidelines to center stage.

Recognition, when deployed effectively, becomes a powerful catalyst in a leader's toolkit. By ensuring it reflects the hard work, strategic thinking, and commitment — not just the end result — leaders can ignite inspiration, stimulate motivation, and form a profound connection with their teams.

As leaders, let's celebrate not just the solved cases, but the challenging puzzles that lead us there.

Let's create a culture where every step towards the goal is seen, appreciated, and applauded. Recognition, after all, is not just about the outcome. It's about the journey and the people who bravely embark on it, one analytical challenge at a time.

See you again next Friday in your inbox.

​Brian