When John Fitch saw a picture of James Watt's steam engine in anencyclopedia, he got a crazy idea. If he could successfully createa steam engine of his own, he could revolutionize how peopletraveled in the newly formed United States. We may take it forgranted today, but travel around and over bodies of water in the1780s was slow, treacherous. A steam-powered boat could savecountless hours, dollars, and lives.

After securing private funding for his idea, Fitch workedvigorously to invent his steamboat. By 1787, he had created aworking model that could transport passengers across the DelawareRiver between Trenton, N.J., and Philadelphia. The boat was ugly,slow and unrefined … but it worked. Delegates from theConstitutional Convention celebrated Perseverance's maidenvoyage, but Fitch knew that if his invention were to be takenseriously as a widely adopted transportation option, he would haveto improve its design.

For the next several years he tweaked the design, made dramaticimprovements, and tested an updated version of his steamboat. By1790 Fitch's new steamboat logged thousands of miles back and forthacross the Delaware. Still, people laughed at his invention. It wasa gimmick, they thought. A circus ride. No way would consumers evertake this invention seriously.

He was right and wrong all at the same time. Funding dried upfor Fitch, and despite creating a more efficient way to travel hewas never able to build a sustainable business model for hissteamboat's operation. It ended up being too much for Fitch to dealwith. He would end up a penniless drunk in Bardstown, Ken., knownas “Crazy Fitch.”

Nearly 20 years later, Robert Fulton became famous for being theinventor of the steamboat. It wasn't true, of course. Fulton didnot invent the steamboat, he tweaked it. He made it commerciallysuccessful. He made a fortune. Most importantly, he didn't give upon the idea.

New ideas fail for many reasons. The timing may not be right.The research may be flawed. The audience may be mismatched. Themarketing, messaging, pricing, or business model may be broken.When credit union decision-makers are lucky, these defects areclear. Most of the time, however, they are unwelcomed surprisesthat drain precious resources of time, energy, and capital.

The truth is, even good ideas fail. More often than we would alllike to admit, bad ideas succeed all the time (at least temporarily… remember the pet rock?). So how can a credit union decision-makerdetermine which ideas will pan out, and which ones won't?

From our experience with the Filene Research Institute's i3program, a successful idea usually boils down to the person, orpeople, behind it. Is she willing to put in the work necessary togo from concept to implementation? Is he willing to hear a hundredpeople tell him no just to hear one yes? Is she relentless intrying to solve a problem, but flexible in how to approach it? Doeshe have grit?

It turns out that “grit” is an important quality. AngelaDuckworth at the University of Pennsylvania found that there is ahigh correlation between a person's grit, or one's perseverance andpassion for long-term goals, and educational attainment, thepredictability that she will successfully complete strenuoustraining programs, and the likelihood she will achieve thosegoals.

Fitch was gritty. He was undaunted by the naysayers, difficultyof fundraising, reputation risk, and countless hours needed to seehis idea through. At least for a while. He simply wasn't grittyenough to enjoy the fruits of his labor. While in the end the yearsof blood, sweat and tears were too much for him, Fulton's ultimatesuccess owes much to Fitch's work.

As we begin recruiting for our next crop of i3ers the FileneResearch Institute, we will be looking for Fultons and Fitches. Whohas the grit to make something out of nothing? Who has the gift fortweaking good ideas to make them great? Who can improve processes,business models, and flawed designs to improve the lives ofconsumers, the viability of credit unions, and the overall healthof the credit union system? Who has grit?

i3 applications are being accepted until May 31 and areavailable online.

Matt Davis is directorof innovation at the FileneResearch Institute in Madison, Wis.