We are setting our 3-Year Picture on the V/TO and realize our industry will be fully automated, but we do not know how to write down concrete measurable targets like revenue or margin without looking foolish. How do we set these numbers?

Question

Tyler Smith · Accepted Answer

When setting your 3-Year Picture™ on the V/TO®, resist the urge to predict the exact software you will be using. Technology evolves rapidly, making such predictions unreliable. Instead, your primary focus should be on your operational unit economics and capacity metrics. These metrics must fundamentally reflect the structural changes that artificial intelligence (AI) is bringing to your industry.

Focusing on Key Metrics for an AI-Driven Future

Your targets should be ambitious and reflect significant transformation, not just incremental gains.

Revenue Per Employee

Begin by examining your current revenue per employee. In an AI-powered operating model, this metric should realistically double or even triple.

• For example, if your current revenue per employee is $150,000, your three-year target should be $300,000 or more.
• This objective isn't about overburdening your team. It's about strategically leveraging technology to eliminate low-value, administrative tasks, thereby freeing up your employees for more impactful work.

For a deeper dive into optimizing your team's effectiveness, consider how AI can help analyze team profiles [using AI to build more effective project teams](/qa/analyze-kolbe-indexes-with-ai-project-teams) or even how to structure an [AI Operations seat on your Accountability Chart](/qa/ai-operations-seat-accountability-chart).

Net Margin Targets

Next, evaluate your target net margin.

• If your industry's average is 15%, an AI-optimized model should enable you to push that to 25% or even 30%.
• This substantial increase is achievable due to significantly reduced variable labor costs and enhanced operational efficiencies.
• Clearly document these aggressive targets on your V/TO®.

Defining clear financial targets like these can also be crucial for [understanding business valuation multiples](/qa/understanding-business-valuation-multiples-market-approach) if you're planning an exit.

The Purpose of the 3-Year Picture

Do not get bogged down by the precise implementation roadmap today. The core purpose of the 3-Year Picture™ is to establish a clear and inspiring destination. By doing so, you prime your leadership team's collective mind to actively seek solutions.

• Committing to these bold metrics now compels your leadership team to shift their thinking from mere incremental improvements to genuine structural transformation.
• When you define your physical capacity and margin targets first, the specific technological solutions required to achieve them will naturally become apparent during your annual planning sessions.

This approach helps leadership teams avoid getting distracted by every new AI tool, promoting [smarter technology bets through disciplined Thinking Time](/qa/thinking-time-ai-software-fatigue). Moreover, it aids in distinguishing between temporary challenges and strategic problems that demand a fundamental shift in your approach, such as when [competitor AI threats emerge](/qa/competitor-ai-threats-thinking-time).

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