At our Slatebox, we believe that sustainable business growth is a key factor in achieving long-term success. However, many organizations struggle to understand how to achieve growth and what strategies to implement in order to achieve it. In this article, we will discuss the 3 Horizons of Growth model, a framework that can help businesses achieve growth and success.
The 3 Horizons of Growth model is a strategic framework developed by management consulting firm McKinsey & Company. It is designed to help businesses plan for and achieve growth over a three-phase period. The three phases, or horizons, are defined as follows:
The core business - This horizon represents the core products, services, and business processes that are generating the majority of the organization's revenue and profits.
The emerging business - This horizon represents the products, services, and business processes that are expected to generate future revenue and profits. These emerging areas are often in the early stages of development and may not yet be profitable.
The potential business - This horizon represents the products, services, and business processes that are in the ideation or experimentation phase. These areas have the potential to generate significant future revenue and profits, but are still in the early stages of development.
By focusing on all three horizons, businesses can ensure that they are not only growing in the short term, but also building a strong foundation for future growth.
The first step in implementing the 3 Horizons model is to assess your current business and identify which areas fall into each horizon. This can be done by analyzing revenue and profit data, as well as market trends and customer needs.
Once you have identified the areas within each horizon, you can begin to develop strategies to optimize growth in each area. This may involve investing in new technologies or processes, developing new products or services, or exploring new markets.
It is important to note that the 3 Horizons model is not a one-size-fits-all solution. Each business will have its own unique challenges and opportunities, and it is important to tailor your growth strategies accordingly.
One of the key benefits of the 3 Horizons model is that it provides a structured framework for planning and achieving growth. By breaking down growth into three distinct phases, businesses can focus their resources and efforts on the areas that will have the greatest impact.
Another benefit of the 3 Horizons model is that it encourages innovation and experimentation. By dedicating resources to emerging and potential areas, businesses can explore new ideas and technologies that may not have been considered in the past.
Overall, the 3 Horizons of Growth model is a powerful tool for businesses looking to achieve sustainable growth and long-term success. By focusing on all three horizons, businesses can ensure that they are not only growing in the short term, but also building a strong foundation for future growth.
Implementing the 3 Horizons of Growth model can help businesses achieve long-term success and sustainable growth. By focusing on all three horizons and tailoring growth strategies to fit the unique needs of the business, organizations can position themselves for success in the years to come.