What is McKinsey horizon model?
The 3 horizons model is a growth strategy framework by McKinsey that you can use to think about the future of your company. It can help you manage growth in a coordinated way. The 3 horizons model should only be used to set or challenge a growth strategy, which will help inform an innovation strategy.
What are the three horizons of growth?
What are McKinsey’s Three Horizons of Growth?
- Horizon 1: Maintain & Defend Core Business. Activities that are most closely aligned to your current business.
- Horizon 2: Nurture Emerging Business.
- Horizon 3: Create Genuinely New Business.
What are the three categories of the McKinsey three horizons model?
What is the McKinsey Horizon Model?
- First horizon – your existing business. It focuses on corporate development/innovation at this very moment.
- Second horizon – a company in transition. This framework focuses on either disruptions or transformations of the first horizon.
- Third horizon – a new business emerges.
What are the three horizons?
For example, some organizations defined Horizon 1 as new features that could be delivered in the short term of three to 12 months, Horizon 2 as business model extensions that will be ready 24 to 36 months out, and Horizon 3 as creating new disruptive products or business models 36 to 72 months out.
How many growth horizons are there?
three horizons
The three horizons framework offers a way to concurrently manage both current and future opportunities for growth.
Who created 3 horizons?
Bill Sharpe
3H maps overlapping waves of change visible in the present as mindsets: managerial, visionary, and entrepreneurial. Three Horizons was developed by Bill Sharpe of International Futures Forum as part of work for the UK Foresight Program’s Intelligent Infrastructures Project2.
What is H1 H2 H3 innovation?
H1: defending the core (sustaining innovation) H2: extending the business (disruptive innovation) H3: transformative innovation.
What is the McKinsey three horizons of growth model?
The McKinsey Three Horizons of Growth model can help to prevent a gap between what an organisation wants in the future and where it stands today. This McKinsey Three Horizons of Growth model gives companies step-by-step insight into their growth and the achievement of their ultimate strategic goal.
What are the three horizons of growth and innovation?
The three horizons of growth simply outline the idea that a business needs to manage three horizons of growth and innovation. Horizon 1 is about defending & expanding the current core business. Horizon 2 is about fostering emerging new business (es). And, horizon 3 is about seeding future business (es).
What are the horhorizon of growth?
Horizon 1 is about defending & expanding the current core business. Horizon 2 is about fostering emerging new business (es). And, horizon 3 is about seeding future business (es). It seems simple enough, but there are some interesting implications for the framework. Let’s go over a little background on the Three Horizons of Growth.
How do you manage all three horizons of growth?
The key is to manage all three horizons of growth concurrently, though with different mindsets, metrics, and incentives. The vast majority of management teams are focused on horizon 1, the “current business.” The goal in Horizon 1 is to defend and expand the current business.