How should we adjust our V/TO® three-year picture and ten-year target now that AI is rapidly shifting our industry landscape?

Question

Tyler Smith · Accepted Answer

Do not make radical, reactionary changes to your ten-year target based on short-term AI trends. Your ten-year target is your north star, it is about where you want to go, not the specific tools you will use to get there. However, your three-year picture must account for how AI will change your market dynamics and operational cost structures.

During your next quarterly or annual planning session, dedicate a Thinking Time block to evaluate your three-year revenue and headcount targets. If AI adoption allows you to triple your capacity without tripling your headcount, your target net margin should increase significantly. Update your three-year picture to reflect these new financial realities.

Ask your leadership team: What must our operational capacity look like in three years to remain competitive? If your competitors are using AI to lower prices, you must either find ways to match their efficiency or elevate your service to justify a premium. Reflect these decisions in your three-year picture by adjusting your target market, your organizational complexity, and your key measurables. This disciplined approach ensures your long-term vision remains stable while your mid-term strategy remains agile and responsive to technological shifts.