The Good Idea Trap™ Explained

Growing up, many of us believed that one great idea was all it took to become successful—the classic American Dream. But in reality, a “good idea” alone is never enough.

In our personal lives, decisions—whether to buy a car, take a trip, or try a new restaurant—often come down to asking, “Is this a good idea?”

For organizations, it’s far more complex. There are always more good ideas than there are resources. The central job of management is to allocate finite resources—money, time, people—to the projects that best advance the mission and goals of the organization.

If resources were unlimited, there would be no need for a Chief Financial Officer, no purpose for financial analysis, and no foundation for economics. Finance exists because resources are finite, and its tools are designed to compare options—financially and strategically—to determine where they will have the greatest impact.

The best organizations—whether companies, non-profits, or government agencies—excel at this. They focus resources on their most critical priorities, increasing the odds of success. Those that lack focus spread themselves too thin, moving too slowly or failing to achieve meaningful results. This is the Good Idea Trap—the belief that you can pursue all good ideas or settle for ideas that are merely “good enough.”

One of the best examples of disciplined resource allocation is Apple Inc. Founded in 1976 by Steve Jobs in Cupertino, California, Apple had countless potential directions to pursue. Jobs, celebrated as an innovator, was also a master of focus. Every year, he would take his leadership team offsite with a long list of promising projects, then push them to choose the two or three that mattered most. Those would get the company’s full attention.

Apple produces relatively few products—but they execute them extraordinarily well. You could place most of their product line on a small table, yet those items generate billions in revenue each year.

Prioritization is not painless. Choosing to focus means some good ideas will never be pursued, and that can be uncomfortable. But resource rationalization is essential for long-term survival. The organizations that endure and excel are those that resist the Good Idea Trap and channel their finite resources into the few priorities that matter most.