The Three Horizons Model is a strategic framework for managing innovation and growth by balancing present needs with future possibilities, dividing activities into three time-based horizons: Horizon 1 (H1) focuses on optimizing the core, profitable business; Horizon 2 (H2) explores emerging opportunities and new ventures; and Horizon 3 (H3) envisions radical, long-term future growth or transformation, with the model helping organizations manage these concurrent strategies for sustained success and adaptation.
Three Horizons is a useful tool for teams and stakeholders seeking to bring about different ways of working over the long-term. It helps you to plot out where you are, where you want to get to, and how to move between these two places.
Horizon 3 ventures are long-term innovation projects that generally produce results in 5-12 years. They're typically associated with non-incremental innovations (disruptive, radical, or architectural innovations, for instance).
Three Horizons is a simple and intuitive framework for thinking about how we can guide systems change. The framework was developed by Bill Sharpe of the International Futures Forum and has been influential in many fields of study, including economics, philanthropy, and sociology.
“Horizon Three” or “H3” names the future-ready system we need, one that is grounded in equity serving learners' individual strengths and needs as well as the common good. This series and culminating publication provides a glimpse of where H3 is already being designed and built.
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Horizon 1 relates to your organization's current money-making products and services. Horizon 2 focuses on emerging businesses, often expanding on existing products. Horizon 3 refers to ideas for future ventures or revenue streams and covers a wide variety of opportunities.
The 'Three Horizons Framework', developed by Bill Sharpe, is a strategic tool for managing long-term transformation. It maps three phases of change—current systems (Horizon 1), visionary futures (Horizon 3), and the transition zone (Horizon 2)—helping organisations navigate innovation and address emerging challenges.
The horizon is the line that separates the Earth from the sky. There two main types of horizons—Earth-sky horizons and celestial horizons. Both Earth-sky and celestial horizons have different sub-types of horizons. The local horizon, geographic horizon, and sea-level horizon are all Earth-sky horizons.
While many organizations focus on the three levels of strategy (corporate, business unit, and functional), forward-thinking companies often add a fourth: the operational level. This level dives into the daily activities and processes within individual teams and departments.
The McKinsey Horizon Model, also known as the Three Horizons Model, is a strategic framework used to identify and manage innovation within an organization. The model was developed by McKinsey & Company in the 1990s and has since become widely used in the business world.
The factors that significantly contribute to such a result-oriented view are the 3Cs – Customer, Culture and Competence.
Horizon 1 focuses on quick, low-risk AI experiments to build momentum and maintain human skills. Horizon 2 emphasizes intentional workforce redesign and careful change management to avoid deskilling. Horizon 3 involves fundamental innovation in business models and addressing broader societal impacts.
This method has you focusing your analysis on the 3C's or strategic triangle: the customers, the competitors and the corporation. By analyzing these three elements, you will be able to find the key success factor (KSF) and create a viable marketing strategy.
The Three Horizons Framework (3H) helps by asking people first to make their assumptions explicit, and then to explore emerging change as a way to reframe what they think, what they want, and what they do.
"horizon" Example Sentences
From her cabin, she could see islands on the horizon. We sat on the balcony with a glass of wine and watched the sun sink below the horizon. The sun is setting on the horizon. The sun is rising from the horizon.
The word horizon derives from the Greek ὁρίζων κύκλος (horízōn kýklos) 'separating circle', where ὁρίζων is from the verb ὁρίζω (horízō) '(I) divide, (I) separate', which in turn derives from ὅρος (hóros) 'boundary, landmark'.
With this framework, you manage business and growth using three horizons that represent short-term building and maintaining current core business, medium-term expansion and exploration into new opportunities, and research and ideas for future growth and new business opportunities.
Organizations must develop and implement a strategic framework to maintain a successful business. One of the best approaches is to create a strategic framework centred around the three Ps: purpose, process, and performance. This framework will provide focus and organizational direction.
H1: defending the core (sustaining innovation) H2: extending the business (disruptive innovation) H3: transformative innovation.
The 3 Horizons are: Horizon 1 — Defend and extend core businesses. Horizon 2 — Build emerging businesses. Horizon 3 — Create viable options.
The classic 7-S
Peters and Robert H. Waterman Jr., the framework maps seven interrelated factors—shared values, strategy, structure, systems, style, skills, and staff—that influence an organization's ability to change.
Any of the three dimensions of strategy — value, imitation or perimeter — can be the starting point of a strategic initiative. Several sequences of value, imitation and perimeter are possible, and each typifies a strategic development.