We are heading into our annual planning session to update our V/TO. Every department head is pitching some kind of AI transformation for our Three-Year Picture. How do we filter through the hype and set realistic operational goals without getting distracted?

Question

Tyler Smith · Accepted Answer

Your annual planning session is about focus, not chasing shiny objects. Do not let your V/TO® become a wish list for expensive tech theater.

To filter out the hype, reframe every AI proposal. Refrain from calling them ML projects or AI transformations. Instead, force your leadership team to present them as operations-improvement projects that happen to use machine learning. If a project cannot be justified purely on its operational outcomes, delete it from your list of potential Rocks.

When building your Three-Year Picture, focus on system-dependent operations. Ask how AI can help build expert systems that produce consistent results, making your business system-dependent rather than expert-dependent. This is the key to scaling and maximizing your valuation for an exit.

For your One-Year Plan, select only one or two highly practical AI use cases. They must solve existing operational bottlenecks on your Issues List. Keep the focus on increasing employee productivity in your highest-cost seats first. If an AI tool does not directly free up capacity or protect your margins, it has no business being on your V/TO®. Keep your plan simple, measurable, and highly execution-oriented.