This is essentially what happened in my group when I was at Yahoo. Our group spent several months on a redesign that made it significantly more modern and easier to use. After it went live, though, this decreased the number of ad clicks by a significant number, and the people in charge hurriedly reverted all the changes back, since they needed to make their revenue numbers in order to make their bonus. When you are s…
> "This is truly a nightmare scenario for any CEO: do you take the risk and proceed with the better user experience/product at the expense of short term numbers–with no promise that the better design will actually lead to long-term benefits–or do you scrap the new design and start over?"
Would the simplified, modern design have led Yahoo into a new era of profitability? Maybe. Or maybe they'd just have a nicer site that made less money for a year.
Our team made a site that made less per visitor, but we felt like it was a better-looking and more useful site. We decided to stick with it and work out the kinks, but ~6 months went by without reaching our old sites' benchmark. There was a ton of pressure on me to make it work or admit defeat and revert. I nearly gave in as the stress built, but eventually revenue surpassed the old site. I later learned that I was almost fired over it.
My story has a happy ending, but just barely. I have sympathy for the people making these decisions.