Some business leaders, after they enjoy a major success, get bored. They develop the desire to expand with inappropriate acquisitions. They think they can turn any company around, or be successful in any venture.

Unfortunately, most acquisitions and mergers have a 50 percent chance of success at best. Look at what’s happening with Procter & Gamble. For 10 to 15 years, the company went on an acquisition kick, buying Duracell and other businesses. Earlier this year, the company announced that it is planning to divest itself of nearly 100 of its brands.

Leaders can also exhibit restless behavior when it comes to long-established programs at their core companies.

Some leaders will throw out a long-standing, successful advertising campaign simply because they are tired of it and want something new. Millions of dollars may be spent on a new campaign, which isn’t any more effective and, in fact, is usually less effective than the old one. All because someone was restless.

The Three Clarities

Before business owners proceed with an acquisition or undertake any major new project, they should seek clarity on three points.

Clarity of direction // What is the business trying to accomplish? What are its top five or six objectives? By having specific, identifiable goals, owners know what they’re trying to achieve—and will be less likely to tackle projects that are outside of their specialty.

If a company isn’t clear about its direction, it may seduce itself into embarking on a venture that is a bad fit.

Years ago, for example, the Campbell Soup Company decided to enter the restaurant sector because it was a food business. Operating a restaurant, though, is a food service business, and Campbell’s didn’t know enough about it.

Clarity of organization // Who does what in the organization? Who are the key people? Everybody spends time on the numbers during an acquisition or expansion, but businesses often forget to look at their people.

Will acquiring a new company or adding a new line dilute the company’s leadership resources? Many times, businesses move their most successful leaders into failing acquisitions, away from the areas where they have been making important contributions, which leads to a double loss.

If a small business is acquiring another company, owners also should think about how the two workplace cultures will interact.

Clarity of measurement // Does the business have a system for ensuring that it’s following its plan and meeting goals? If things are not on track, why not? And what is being done to get back on plan?

Larger companies usually have a board of directors that can provide accountability and intelligent feedback. If a small business lacks a formal board, the owner should seek out someone knowledgeable who can offer advice. Most entrepreneurs have two or three people they can turn to, such as a mentor or a business adviser.

A Longer, Safer Road to Good Returns

Instead of pursuing an acquisition, it might be wiser for business owners to reinvest in their own companies and their own people, simply because the probability of success is higher. Ford and Toyota provide a good comparison.

In 1989, Ford wanted to add new product lines, and it did so by purchasing Jaguar, an established brand. That same year, Toyota introduced the Lexus, an entirely new model that it developed on its own.

Not only has Lexus been eminently successful, it cost less to develop than what Ford spent buying Jaguar. Ford ended up selling Jaguar in 2008.

This kind of growth takes longer than an acquisition, so it might seem boring. It’s safer, however, and is more likely to produce a long-term return.