It all began in Everett, Washington, where my project team was in the process of implementing one of our business systems.

One morning, as I walked through the parking lot with one of my employees, I found a penny and picked it up. Playfully, I presented the penny to the employee and said, "This is a discretionary award for your efforts." He put the penny in his pocket. "Thank you," he said.

About six months later, I was walking with the same employee, this time in Los Alamitos, California, when I again found a penny and gave it to him.

Later, I had an occasion to go into his office and there, taped on a piece of paper, were the two pennies. He said he was displaying them as his recognition for a job well done.

Other employees noticed the pennies proudly displayed and began asking why they hadn't received any. So I started handing out pennies, explaining that they were for recognition, not for reward. Soon, so many people wanted them that I designed a penny holder. The front features a place for a penny and beside it the phrase, "Your work is recognized!" The back has slots for 30 more pennies and the phrase, "Your achievements count!"

One time, I spotted an employee doing something right and wanted to recognize her, but I didn't have a penny, so I gave her a quarter. Later that same day she stopped by and returned 24 cents.

That's how the "Prestigious Penny Award" was born. It's become a significant source of recognition in our organization.