We are realizing that our historic Target Market™ on the V/TO® cannot afford or do not want advanced AI-driven advisory, while high-value enterprises do. How do we use our Core Focus™ and the IDS® process to decide whether to abandon our legacy client base and shift upmarket to protect our margins?

Question

Tyler Smith · Accepted Answer

Deciding whether to abandon your legacy client base is a high-stakes strategic choice that must be filtered through your Core Focus on the V/TO and resolved using the IDS process. Your Core Focus is your filter for saying no to opportunities that do not align with your true value.

Bring this issue to your next quarterly planning session or leadership meeting. Start by identifying the real problem: your legacy target market is experiencing fee pressure because they view your services as a commodity, while high-value enterprises are willing to pay a premium for your strategic AI integration and advisory. This is a classic misalignment of your Target Market on your V/TO.

During the discuss step of IDS, analyze the financial impact of shifting upmarket. Calculate the transition costs, the sales cycle duration for enterprise clients, and the potential revenue loss from exiting your legacy market. Compare this against your Core Focus: does serving enterprise clients align with your purpose, cause, or passion, and do you have the unique capability to dominate this new niche?

Once you have debated the issue, make a firm decision. If you choose to pivot, update your Target Market on the V/TO to reflect this high-value enterprise segment. Create a detailed 1-Year Plan with specific Rocks to transition your service offerings, retrain your sales team, and systematically offboard low-margin legacy accounts. This disciplined execution protects your margins and aligns your operations with a market that values your strategic expertise.