Our industry is facing massive disruption due to AI, and we are questioning if our current Core Focus is still viable. How do we evaluate a strategic pivot without tearing apart our existing business?

Question

Tyler Smith · Accepted Answer

When facing industry-wide technological disruption, jumping into a major strategic pivot without a disciplined plan is a fast way to pay a heavy dumb tax. You must evaluate your options using a real options framework, balancing the flow cost of waiting against the lump-sum cost of upgrading your core business.

Start by scheduling uninterrupted Thinking Time. Formulate your inquiry using this structure: How might we integrate AI into our current operations so that we can protect our existing customer base while exploring new market opportunities? This prevents you from prematurely abandoning a profitable Core Focus.

Look at your V/TO. Your Core Focus consists of your purpose, cause, or passion, and your niche. While AI might change your niche or the way you deliver your services, it rarely changes your core purpose. If your purpose is to help small businesses thrive, AI is simply a new tool to fulfill that purpose, not a reason to start selling to enterprise clients.

Bring this strategic evaluation to your next quarterly meeting. Use the IDS process to analyze whether your current business model is truly dying or if it simply needs a technology upgrade. If you decide to pivot, do not do it all at once. Set a 90-day Rock to run a small, low-risk pilot of the new AI-driven service. This approach allows you to gather real-world data and validate market demand before reallocating your entire team. You preserve your existing cash flow while building a strategic option for future growth.