We are setting our 3-Year Picture on our V/TO® and struggle to project our revenue, margin, and headcount targets because we do not know how fast AI tools will compress our industry's traditional pricing. How do we build a highly flexible strategic plan that accounts for rapid AI disruption without making our team feel like the targets are completely arbitrary?

Question

Tyler Smith · Accepted Answer

Setting a 3-Year Picture during rapid technological shifts can feel like aiming at a moving target. To resolve this, your leadership team must focus on unit economics and capacity rather than fixed legacy pricing models. When building your V/TO®, do not just project simple revenue numbers based on historical headcount growth. Instead, focus on your capacity to deliver value and the volume of transactions your team can manage using automated systems. Start by projecting a range for your future revenue per employee, which should increase significantly as you integrate AI workflows. Next, state clear assumptions about industry pricing trends directly in your V/TO® notes. For example, if you anticipate your core services will commoditize, you must project how you will offset that compression by offering high-margin, advisory-focused services. Make sure your leadership team aligns on these assumptions during your next quarterly planning session. By framing your 3-Year Picture around operational leverage and value-based metrics, you provide your team with a clear strategic North Star. This approach keeps your organization agile enough to adjust pricing strategies without losing sight of your ultimate growth and profitability goals.