Betting a Dollar it Won't Work

This week the U.S. Mint introduces the Presidential one dollar coin. These coins will be the 14th dollar coin series produced by the Mint going back to 1794. The Susan B. Anthony replaced the Eisenhower dollar in 1979. That coin was replaced by the Sacagawea dollar in 2000.

These new coins will be popular in one way - since the introduction of the widely popular State quarters, interest in coin collecting has grown - many of those quarters are out of circulation and in collections in homes everywhere. I predict the same will happen with these new dollar coins. People will collect some - perhaps more than with past dollar coins. But as a replacement for the dollar bill, they will fail miserably.

I don't make this prediction based on knowledge of coin collecting or usage, but based on knowledge of human nature. As long as the existing $1 bill remains, a coin won't become the favored option.

From the Associated Press - "An AP-Ipsos poll found that three-fourths of people surveyed oppose replacing the U.S. dollar bill, featuring George Washington, with a dollar coin. People are split evenly on the idea of having both a dollar bill and a dollar coin.

A new version of the coin, paying tribute to U.S. presidents, goes into general circulation Thursday. Even though doing away with the bill could save hundreds of millions of dollars each year in printing costs, there is no plan to scrap the bill in favour of the more durable coin."

I travel to Canada a great deal and so I am very used to $1 Canadian coin (they have a $2 coin as well). While it takes some getting used to, in the end the coins work great and make a ton of sense. On a logical level the coin makes sense - they are durable and would save the country "could save hundreds of millions of dollars each year in printing costs." But that money won't be saved as long as the dollar bill exists. Individuals would save money too with the new coin because according to that same AP poll, 42% of people put their loose change in a jar or piggy bank each day.

People don't make decisions logically; they make them emotionally, and since we as Americans are emotionally connected to our "greenbacks", we won't automatically start carry the coins.

There is no compelling reason to change (the savings isn't compelling to an individual and the existing alternative remains), and so this change won't occur.

Think about the change you need to implement in your organization or your life and think about the lesson of the dollar coin - make sure that your change provides a truly compelling opportunity - that people see something in it for them. Otherwise, if the existing options remain, don't expect your change to take place quickly.

Labels: change, change leadership, dollar coin

Digg it | del.icio.us | Add to Technorati