We see a massive opportunity to launch a new AI-enabled service line that targets a different customer segment, but our leadership team is divided on whether this is a strategic move or a dangerous distraction. How do we evaluate this opportunity?

Question

Tyler Smith · Accepted Answer

When shiny new AI opportunities present themselves, it is easy for a leadership team to lose focus and chase unprofitable trends. To evaluate this new service line, you must run it through the filter of your Core Focus on the V/TO. Your Core Focus consists of your Purpose, Cause, or Passion, and your Niche. If this new AI-enabled service does not align with both, it is a distraction that must be tabled.

During your next quarterly session, put this issue on the IDS list. Evaluate whether this new service leverages your existing operational strengths or requires you to build entirely new capabilities. Ask yourself if this new service line helps you dominate your target market or if it drags you into an unfamiliar industry where you have no competitive advantage. Remember, prioritize use cases for AI that improve operational efficiency, freeing employees from low-value tasks for higher-value strategic work within your existing business model first.

If the opportunity passes your Core Focus test, use AI for Scenario Simulation to predict the outcomes. Ask the tool to simulate economic outcomes, competitor responses, and client reactions to this new service. If the simulation and your EOS tools confirm it is a viable move, assign a clear owner on the Accountability Chart and set a Rock to pilot the service. Otherwise, keep your focus on maximizing the profitability of your core operations.