Design Intelligence: Why Most AI Prompts Fail Before You Even Write Them

Episode notes

What this conversation covers

Most entrepreneurs think the secret to getting better results from AI is writing better prompts.

But what if the real problem starts before the prompt is even written?

In this episode of Small Business Big AI, Kim Lewis Howard and Hal Howard explain why so many business owners feeldisappointed by AI tools like ChatGPT—even when the answers seem technically correct.

The problem isn’t the AI.

And it isn’t your prompts.

The real problem is something almost everyone skips: thethinking that should happen before the prompt exists.

This episode launches The IMPACT Series, a five-episode deep dive into how successful companies are actually designing intelligence into their businesses.

Because once you understand the first two steps of theIMPACT framework—Identify and Mode—AI stops producing generic output and starts producing work you’d actually put your name on.

Key Insight from This Episode

Most people believe AI performance depends on the prompt.

But the operators getting the best results know somethingdifferent:

AI quality depends on the brief behind the prompt.

Before any prompt is written, two questions determine theoutcome:

1.      What decision is this output meant to support?

2.      What perspective should the intelligence bring to the problem?

Answer those two questions first—and AI output changesimmediately.

The IMPACT Framework (Introduced in This Episode)

This episode introduces the first two steps of the IMPACTFramework, a system for designing intelligence inside a business.

I — Identify Clarify the decision the output is meant to support.

M — Mode
Define the perspective or operating posture the intelligence should bring to the task.

When these two steps are skipped, AI defaults to average.

Practical Takeaway

Before your next AI interaction, pause and answer twoquestions:

1. What decision am I trying to support with this output?

2. What perspective should the intelligence bring to the problem?

Strategist?
Editor?
Advisor?
Analyst?

Write two short paragraphs answering those questions.

Then write the prompt.

Who This Episode Is For

This episode is especially useful for:

• entrepreneurs using AI tools in their business
• consultants producing thought leadership content
• small business owners experimenting with ChatGPT
• leaders designing AI workflows inside their organization
• anyone frustrated by generic AI output

The IMPACT Series

Episode 84 — Prompt Intelligence (Identify + Mode)
Episode 85 — Designing AI Thinking Systems (Mode + Parameters)
Episode 86 — Building AI Workflows (Activate)
Episode 87 — Governing AI Agents (Check)
Episode 88 — AI-First Organizations (Transform)

Ready to Take Action?

• Subscribe to Small Business Big AI on Spotify or your preferred platform, leave a review, and share this episode with a fellow entrepreneur who could benefit from AI insights.
• Join the AI Insiders Community for Exclusive Tips & Resources → Request to Join our Private Community

• Ask us about the IMPACT Framework course, a strategic way to communicate effectively with the AI → Email Howard & Howard Holdings, Inc.
• Ask us about the Small BusinessTransformation Model (SBTM), a simple, step-by-step framework designed for business owners → Email Howard & Howard Holdings, Inc.
• Have a question or an AI success story? DM us onLinkedIn or Facebook!

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Music Credit: “I Am with You” by Dream Cave; EpidemicSound via iStock.com

Sound Effects: https://pixabay.com/sound-effects/