Our department heads are proposing various AI projects that require significant investment, but we are struggling to see how they align with our long-term goals. How do we filter these proposals through our V/TO® to ensure we are only funding tools that support our ten-year target?

Question

Tyler Smith · Accepted Answer

When AI tools are shiny and exciting, department heads will naturally want to experiment. Without a clear strategic filter, you will end up wasting time and capital on tools that do not move the needle for your business.

To prevent this, you must run every AI proposal through your V/TO. Start with your Core Focus. Does the proposed AI tool directly enhance your niche or support your passion? If a tool does not align with your core business, reject it.

Next, look at your Three-Year Picture and One-Year Plan. If your one-year plan focuses heavily on improving operational margins, an AI tool that automates complex estimating or routing fits perfectly.

However, if your plan focuses on geographical expansion, a tool that merely automates internal HR filings is a distraction.

Make your department heads pitch their AI projects during quarterly planning sessions by answering how the tool helps achieve specific quarterly Rocks or annual goals on the V/TO.

By forcing every technology investment to justify its place on your strategic roadmap, you eliminate useless software spend and ensure every dollar spent on AI directly drives your long-term vision.