From general observation and experience, and acknowledgement from others, IT folks are generally notoriously bad at internal recognition.  What are some of your successful strategies to create a natural culture of peer and management recognition within IT functions?

I see this working well in organizations where the manager or senior leadership has performed the role(s) of his or her employees. Not saying every manager needs to be from the IT field but normally when the leader has an appreciation for the workers and understands some of the challenges then the recognition and the comradely follow. I often see a lot of confusion and frustration when there is that communication gap and neither side is able to bridge that void. 

The way I saw this working well was with two key things:
1 - feedback culture. where managers, peers, etc. would give feedback to anyone and where appreciation/recognition could emerge
2 - "shout outs" / "recognition corners" during team meetings, all-hands, etc.

Both are extremely easy to implement and pretty costless. :)

Soft skills introspection: Organize regular soft skills assessments for IT professionals. Encourage team members to identify strengths and areas of growth in their peers, and then constructively provide feedback. Recognizing these soft skills can help appreciate nuances that typically go unnoticed in tech-heavy roles. 

Challenging one's self: Set up monthly challenges or projects where team members are encouraged to step out of their comfort zones. By doing so, they can demonstrate growth in areas they might not be comfortable with. Celebrate those who show significant improvement or who excel in areas outside their typical roles. This encourages a culture where team members value growth and adaptability. 

Straightforward communication: Reward transparent and straightforward communication. Create a platform or forum where team members can ask questions and expect direct answers. Recognize and appreciate those who provide clear and concise answers, as this aids in the overall efficiency and understanding of projects. 

Empathy and emotional intelligence: Organize team-building activities that focus on understanding and supporting each other’s emotional well-being. Recognize individuals who consistently show empathy and support to their colleagues. This can be done through awards or shout-outs during team meetings. 

Adaptability: The IT sector often demands adaptability due to rapid technological changes. Encourage team members to embrace change and reward those who adapt quickly and efficiently. This can be done through certificates, courses, or bonuses for those who quickly upskill or adjust to new technologies.

We have established an IT Engagement Council of managers and directors that can create content via newsletters and annual awards event that are specfic to our IT organization to (1) create opportunities to recognize our IT colleagues and (2) encourage/require the various IT sub-areas to recognize the "big" and "small" activities that are adding value for our business or driving efficiency.  For the Annual Awards, I have created themed awards, and ask our IT peers recognize each other through MS Forms.  We also made sure that not only the "winners' are recognized/awarded but also the full list of nominees by presenting them with the submission quotes as 3rd party feedback for their performance reviews and impact on others. 

I have always felt that beyond the annual recognitions organized by the company a Friday casual coffee and light snacks is always encouraged wherein we talk mainly about non-work related topics. This was I found that team members got to know a little more about their peer's passions and interest. It helped connect and therefore it helped the team stay approchable to each other