In my group there's always a tendency to turn failed skill checks into a humorous situation. I let the player know they have failed the skill check. Then I let them narrate the results of their failure. Sometimes they doesn't narrate much. Other times the failures are hilarious. Especially on failed monster knowledge rolls. The number of crazy definitions provided for these is amusing. It also provides humor for the other players at the table. I do go the other way of course. On a passed or highly exceeded skill check I let the player narrate their results. Over all it seems to work very well and adds to the enjoyment of all.