We are updating our 3-Year Picture on our V/TO® and want to paint a clear vision of an AI-powered organization, but we do not know how to budget for technology investments versus human capital. How do we balance capital allocation between software licensing and high-value hiring to support this future state?

Question

Tyler Smith · Accepted Answer

When crafting your 3-Year Picture, avoid the temptation to allocate massive capital to custom software development or unproven AI startups. Instead, prioritize your capital allocation toward human complements to cheap technology.

Your first step is to focus on standardizing your internal workflows and training your existing team on off-the-shelf AI tools. On your V/TO®, define your 3-Year Picture not by the specific software tools you plan to own, but by the operational efficiency and revenue per employee you expect to achieve. For instance, project a thirty percent increase in operational capacity without an increase in administrative headcount.

Your capital should be directed toward hiring highly strategic, senior leaders who possess the GWC™ to orchestrate these AI-driven systems. By keeping your software investments lean and your human capital highly strategic, you build a flexible operational model that scales efficiently.

This approach keeps your business exit-ready under the Step by Step Exit framework. Strategic buyers do not want to inherit a complex, expensive, custom-built tech stack that requires a team of dedicated developers to maintain. They want a clean, high-margin business powered by standard tools and run by a highly competent leadership team.