When we look at our V/TO 3-Year Picture, we expect AI to trigger massive margin compression in our standard delivery, forcing us to pivot to premium, high-touch services. How do we define our future target market on the V/TO without alienating current clients?

Question

Tyler Smith · Accepted Answer

Preparing for margin compression requires a proactive shift in how you define your future market position. If artificial intelligence makes commodity delivery cheap and accessible, your current mid-market client base will eventually demand price cuts or look for automated alternatives. To protect your profitability, you must use your V/TO® 3-Year Picture to plan a strategic pivot toward premium, high-value advisory services. Begin by defining your target market, or The List, on your V/TO® to focus exclusively on enterprise clients who value human oversight, strategic risk management, and customized implementation. These clients are willing to pay a premium for execution security, which technology alone cannot provide. Next, update your 3-Year Picture to reflect this shift in revenue mix. Instead of projecting high volume at low margins, project lower client volume with higher contract values. This allows your team to focus on deep, high-touch relationships while automated tools handle the backend heavy lifting. Align your leadership team around this target in your next annual planning session. By focusing your future strategy on high-value human execution, you protect your business from the race to the bottom and build a highly profitable, sustainable business model.