When Great Ideas Fail

Great ideas are the driving force behind a business’s success. However, for an idea to truly flourish, it must progress through several critical stages: concept, planning, buy-in, implementation, assessment, follow-up, and modification. How often have you or your team conceived a promising idea that could boost profits, only to see it fail to gain traction and eventually fizzle out? This scenario is all too common. Often, the idea makes it to the execution phase, excitement builds, but within weeks, it’s forgotten, and everything reverts to the status quo. The idea may have been executed, but it was a one-time effort. Something crucial was missing—a component that was overlooked or failed.

Each stage in this process is equally important. During the concept phase, the idea is brainstormed and clearly defined. Planning involves scheduling and preparing for its implementation. Buy-in is critical, as it ensures all stakeholders understand the benefits and are committed to the idea. Implementation is where the idea is put into action. The assessment phase analyzes the impact and effectiveness of the idea. Follow-up ensures that the new idea is consistently applied and properly integrated among stakeholders. Finally, modification allows for adjustments to enhance success. If any one of these components fails, the entire idea risks failure. Continuous follow-up is crucial. It’s human nature to resist change until it becomes routine, so consistent reinforcement is essential.

Implementing new ideas is often more challenging in an established business compared to a new one. In a new business, everything is fresh, and employees are eager to embrace new concepts. In contrast, established businesses often have deeply ingrained habits, and both employees and management may resist change.

New ideas can impact both employees and customers. When a new idea results in a policy change, confusion can easily arise. Some ideas are reactionary, implemented quickly to address specific issues. However, it’s vital to avoid knee-jerk reactions; always analyze the potential impact thoroughly before making changes. I suggest reading my piece, “What Type of Thinker Are You?” to understand this further. Other ideas aim to enhance the business, such as introducing new products, services, or marketing campaigns. Regardless of the reason, always follow the necessary steps without fail.

For instance, some merchants have begun charging an extra fee for credit card payments to offset the fees charged by credit card companies. However, I’ve overheard employees struggling to explain this policy to irritated customers, and their explanations rarely alleviate the frustration.

Did the merchant fully think through the process? Did they consider the potential for customer dissatisfaction and defection? Likely not. Imagine you’re a restaurant owner who realizes that credit card fees are eating into your profits. You decide to pass this cost onto customers by charging them a fee for using their cards. This quick decision becomes a new policy, but you didn’t fully consider the broader impact. Now, your staff is left to justify this fee to unhappy customers.

Let’s break it down: If the average check at your restaurant is $30 and you impose a 2% fee, the customer pays an additional 60 cents. You might think, “It’s no big deal; customers can afford it.” But you didn’t consider the intrinsic effect.

A better approach could be to raise your prices slightly, perhaps by 1.75%, based on the assumption that not all customers use credit cards. If a cheeseburger costs $15, this would only increase the price by 26 cents. This method keeps the cost invisible to customers and avoids unnecessary discussions between staff and patrons, thus eliminating potential irritation. In my view, penalizing the customer with a direct fee is a flawed approach.

To ensure your new idea succeeds, carefully follow each step. Consider all potential impacts on both customers and employees. Ensure that your team is fully on board, and hold yourself and your management team accountable.