Warren Buffett’s wisdom about “praising by name and criticizing by category” isn’t just clever advice – it’s been a principle I keep coming back to in how I’ve built high-performing teams throughout my career.
This Warren Buffett adage sounds simple, but its application has profound implications for how we build trust, foster innovation, and drive performance. Let me tell you why this matters now more than ever.
I’ve seen firsthand what happens when teams operate from trust rather than fear. People don’t just perform better – they transform. They collaborate in ways that department structures could never facilitate. They take smart risks. They push boundaries.
Here’s what this looks like in practice:
Public Recognition Matters More Than You Think
When someone crushes a project, I make sure EVERYONE knows who did it and exactly what made their work exceptional.
By specifically naming and celebrating exceptional work, you’re not just boosting one person’s confidence—you’re establishing clear markers of excellence for the entire team. You’re saying, “This is what great looks like around here,” and that clarity is invaluable.
I try to be specific in the recognition.
“Leigh’s customer insight research completely changed our approach to the campaign.”
“The way Tara opened the meeting made the clients lean in.”
Addressing Problems Without Creating Fear
The flip side of this principle is equally powerful but requires more nuance: criticize by category. When things go sideways (and they will), we discuss the pattern or process issue, not the person.
I’ve found that addressing issues at the system level completely transforms how teams approach problems:
“We need to improve our process for client feedback integration,” rather than “John missed important client feedback.”
“Our approach to timeline estimation needs refinement,” instead of “Sarah underestimated the project timeline again.”
This subtle shift does something remarkable: it preserves dignity while still addressing the issue. It allows the team to collectively own the challenge without triggering defensive responses that shut down learning.
Building “Gangs” Over Departments
One of the most powerful outcomes of this approach is what I call “gang mentality” (in the best possible sense). When people feel individually valued but collectively responsible, something magical happens—they stop thinking in terms of rigid departmental boundaries and start behaving like a unified crew with shared purpose.
Suddenly, the strategy team is volunteering to help with execution challenges. The creative team is proactively seeking data insights. The media team is offering creative solutions.
This doesn’t happen by accident. It happens when people feel safe enough to venture outside their lanes without fear of being personally criticized if things don’t work out perfectly.
The magic happens when people feel seen for their strengths rather than defined by their mistakes. I watched this play out recently when our team was working to reimagine a brand’s north star.
- Weekly standups highlighted specific individual contributions
- Challenges were framed as system issues to solve, not personal shortcomings
- Cross-functional collaboration was celebrated monthly, loudly, and specifically
Making This Work For Your Team
If you’re looking to implement this approach, here are the practical steps I’ve found most effective:
- Be specific with praise. Don’t just say “great job”—detail exactly what was great and why it mattered.
- Make recognition public and immediate. The closer to the achievement, the more impact your recognition will have.
- Address systemic issues, not people. When problems arise, ask “what about our approach made this outcome more likely?” rather than “who messed up?”
- Create shared ownership of solutions. When addressing challenges, involve the team in developing better approaches rather than prescribing fixes from above.
- Model vulnerability yourself. Talk openly about your own learnings and mistakes as system challenges rather than personal failings.
It’s not just about being nice. It’s about being effective. It’s leadership that’s simultaneously humble and bold.
When someone does do something remarkable? Name it. Celebrate it. Spotlight it. Not just as a pat on the back, but because it shows everyone else what excellence looks like in real time.
When there’s a misstep? Zoom out. Address the system, pattern, or approach without putting someone on blast. The best teams thrive because feedback is safe, growth is possible, and dignity is never compromised.