Innovation Strategy: The Three Horizons of Growth (McKinsey)

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Charles Alter, Consultant, United States
Innovation Strategy: The Three Horizons of Growth (McKinsey)
One of ways of thinking about innovation strategy is to use the 3 Horizons of Growth developed by Steve Coley at McKinsey. The framework provides a useful mold to formulate an organization’s product and service portfolio strategy. It's a diagnostic tool that allows for evaluating the health of a product/service strategy pipeline and for setting up the alignment of short, medium, and long term (innovation) plans of an organization. The model describes 3 innovation horizons in the following manner: - Horizon #1: The Core Business that is most associated with the company in its current state. This typically is an established business that requires most of the attention of the company’s employees and generates the bulk of the sales volume, cash flow and profit. The focus in Horizon #1 is on “Defending and Extending” the core business and on superior execution. - Horizon #2: Includes all Emerging Opportunities that could be a variety of new business opportunities that the company has (...) Read more? Sign up for free

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  Jeff Miles, Business Consultant, Australia

Three Horizons Concept

Great thought prompter. I will use this at my next (...)

  Edith Ohri

New Ventures have only Horizon 3

Why starting with a core business when in new vent (...)

  Jorge Urrea, Consultant, Mexico

3 Horizons of Growth

I agree with Edith Ohri and, as usually, the artic (...)

  Vincenzo Rogione, Management Consultant, Italy

Three Horizons: Why?

Though I appreciate Charles' comment, in my opinio (...)

  Anna hanooman, ICT Consultant, Trinidad and Tobago

Extensions for the 3 Horizons of Growth

I agree with Ohri. In my humble opinion, the three (...)

  M Y Zainudeen, Management Consultant, Sri Lanka

Three Horizons of Growth is in Practice for Ages

Edith is correct, not only this model is in the sc (...)

  Charles Alter, Consultant, United States

Three Horizons of Growth Relevant for Established Businesses

@: admittedly, the three horizons are meant for ex (...)

  simon haafs, Student (MBA), Netherlands

How to Implement the 3 Horizons within 1 Company

I underscribe the model. The challenge is to integ (...)

  Gary Stead, Director, United Kingdom

3 Horizons : Sources for Ideas for Innovation

It seems the real innovation is in horizon 3. The (...)

  Rajan Johri, India

Combine the Three Horizons of Growth with the 5 C's of Marketing Strategy

You can augment the 3 horizons with the to be gro (...)

  MdL Mario TERRALAVORO, Interim Manager, Italy

Balancing Product's Innovations and Future Products

The 3 Horizons combine looking at future products (...)

  KATHRYN STEINER, MBA, Entrepreneur, United States

Three Horizons of Growth Understandable and Useful Across Sectors / Industries

@: hello Charles, you have explained these critica (...)

  Feraidoon Bakhtiari, CxO / Board, Iran

3 Preparation Stages for Horizons of Growth

I like the idea and I share the concepts with part (...)

  Saeed Khodaee, Director, Iran

Status Quo to Boost Future Plans

@: undoubtedly, without maintaining the status quo (...)

  SAMUEL NDUATI MBUGUA, Management Consultant, Kenya

The Three Horizons and Competitiveness

Whereas the main objective of the three horizons i (...)

  marc romano

3 Horizons of Growth is Still Valuable as a Foundation

This basic framework is very sound. It provides a (...)

  Leodegardo M. Pruna, Professor, Philippines

Three Horizons of Growth

The first horizon to my mind is where an enterpris (...)

  Sorni Tindanzo Namateng, Student (University), Ghana

Three Horizons of Growth are Practical

Thank you Charles, today is my first time at 12man (...)

  Tadeusz Sudol, Strategy Consultant, Poland

Where to Hunt for Innovation Ideas?

@: The answer is: everywhere, but the process of i (...)

  Raghu Bala, Manager, United States

The Right Distribution of Resources over the 3 Horizons

Businesses struggle with distributing resources to (...)

  Osama Kamal, Management Consultant, Egypt

Exploring Uncertainity with the 3 Horizons of Growth

It's like these 3 horizons. I will use the model i (...)


Innovation Strategy: the Three Horizons of Growth (McKinsey)

@: steps 1-2 are required to generate resources an (...)

  Brijesh Dave, Manager, India

Three Horizon Concept for Challenging the Status Quo

Good concept to generate thoughts to challange the (...)

  Falk Heinrichsohn, Business Consultant, Portugal

Look out of the Window and see 3 Horizons

The three horizon approach may help with the probl (...)

  Dr zahra gheidar, Consultant, Iran

Time is Important Point

Certainly, these frameworks are usual steps for es (...)

  Charles Alter, Consultant, United States

Three Horizons of Growth all about Innovation and Marketing

Thank you to everyone who has replied and shared t (...)

  Aladdien Mohamed, Manager, Saudi Arabia

Don't Focus too much on Horizon 1

Actually I have a comment on stage 1. Organization (...)

  Jaap de Jonge, Editor, Netherlands

Senior Managers Should Focus on Horizons 2 and 3

That's right, the 3 horizons of growth are especia (...)

  Cristina Isenrath, Director, Argentina

Where are the Resources..

@: more looking inside ourselves... To find resour (...)

  GAMANSON, Management Consultant, Sri Lanka

Protect your Bread and Butter First

Any business has to ensure first it survives in th (...)

  Martin Kerr, Project Manager, Australia

Consistent Context Using Horizons

In our organisation the 3 horizons are standard di (...)

  Jaap de Jonge, Editor, Netherlands

All 3 Horizons are Important, but...

@: all 3 are (equally) important for any business, (...)

  Sandy Findlay

The 3 Horizons of Growth Help to Decide on Innovation Resources

Excellent model for drawing attention on where res (...)

  Francesco Cuoco, CEO, Italy

3 Horizons of Growth... Only for Large Companies?

Seems a correct approach for medium- large compani (...)

  Julius Belleza, CEO, United States

3 Horizons of Growth Reminds and Helps us Prepares for Change

I agree with and Aladdien Mohamed. For business s (...)

  Charles Alter, Consultant, United States

Three Horizons of Growth at SMEs

@: For SMEs (small - medium size enterprises) the (...)

  FUNSHO, Accountant, Nigeria

Consider the Reasons for Growth in 3 Horizons

Business growth cannot be limited to these 3 horiz (...)

  Olawale Christopher Olamiju, Financial Consultant, Nigeria

3 Horizons Model - A Good Start for the Strategic Planning Process...

No doubt, this 3 horizons model is not cast in sto (...)

  Leodegardo M. Pruna, Professor, Philippines

Time to Spend on Each Innovation Horizon

@: there is no fixed rule on how much time to spen (...)

  ENRIQUE CARLOS POZO, Project Manager, Spain

Transversal Innovation

I think the three horizons must be parallels, not (...)

  KATHRYN STEINER, MBA, Entrepreneur, United States

Differentiating Critical Functions and Costs

@: innovation is probably also known as research a (...)

  Htin Kyaw Myint, Manager, Myanmar

Quite Useful Model for our Organisation

In fact, it is quite a good model for our organiza (...)

  KATHRYN STEINER, MBA, Entrepreneur, United States

Model for Industries That Have Complex Logistics

This model would be interesting to translates into (...)

  Dr zahra gheidar, Consultant, Iran

Length of Horizons is Vital

Certainly measuring a precise, definite time and d (...)

  John Moses, Manager, Nigeria

3 Horizons Model is about Strategy Stages

Looking at the three horizons, it is all about dif (...)

  Francesco Cuoco, CEO, Italy

The 3 Horizons for Growth

I think that the model is quite generic. The real (...)

  Charles Alter, Consultant, United States

Stabilizing Current Business can be hard in case of Disruptive Innovations

@: I think that's exactly the point of the three h (...)


This is only a Theoretical Framework

This framework helps you how to think but not how (...)

  Francesco Cuoco, CEO, Italy

Combine 3 Horizons of Growth with SWOT Analysis

@: I guess the two methodologies complement each o (...)

  Ionelia Iftimie, Director, Romania

3 Horizons of Growth

I think this proposal would be an interesting star (...)

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