Mckinsey Three Horizons Model
McKinsey’s Three Horizons of Growth are all about keeping you focused on growth and innovation. This strategy framework requires you to categorize your goals into 3 different horizons – Maintain & Defend Core Business, Nurture Emerging Business, Create Genuinely New Business. Most of your immediate revenue making activity will sit in horizon 1. For a retailer, this would include the day-to-day goals associated with selling, marketing and serving your product / customers. Your goals in horizon 1 will be mostly around improving margins, bettering existing processes and keeping cash coming in. There may be an initial cost associated with your horizon 2 activities, but these investments should return fairly reliably. This is based on them being an extension of your current proven business model. Examples of this could include launching new product lines or expanding your business geographically or into new markets. The third horizon allows you to embed completely new elements into your business that do not exist today. These ideas can be unsubstantiated and potentially unprofitable for a significant period of time. This can include things like research projects, pilot programs, or completely new revenue streams that require a significant initial investment. McKinsey’s Three Horizons of Growth aims to help you bridge this intellectual gap. It does this by creating stepping stones between running your business profitably today and growing it for the future. This strategy framework helps ensure that you consistently balance your focus between the needs of today (horizon 1), the future state of your business (horizon 3) and the steps that you need to take to get there (horizon 2). The Three Horizons of Growth framework is an extremely versatile strategy framework, applicable to most organizations. In particular the framework lends itself to organizations who’ve identified that growth and innovation have been a stumbling block. If you feel as though your organization is mired in chugging along delivering business as usual – McKinsey’s Three Horizons of Growth might just be the right strategy framework for you.
Mckinsey Three Horizons Model template will be useful for company directors when preparing a company’s development strategy. This template can also be used by a crisis manager when preparing an action plan for taking the company out of the crisis. Slides to this template will be useful for startups and investment companies. You can use this template when preparing for your meeting with investors or shareholders. Also, this template will be useful for business coaches and university teachers. Product managers can use this template when preparing a go-to-market strategy for a new product. You can change the size of blocks and infographics, color and font size according to your corporate requirements. Mckinsey Three Horizons Model template will organically complement your collection of professional presentations and will take its rightful place in it.