Strategic Framework for Sustainable Business Growth PPT

This PPT slide, part of the 31-slide McKinsey 3 Horizons of Growth PowerPoint presentation, presents the McKinsey 3 Horizons of Growth framework, which is designed to help organizations navigate market disruptions and identify growth opportunities. It emphasizes the importance of balancing existing core business operations with the pursuit of new ventures.

Horizon 1 focuses on assessing current resources, ensuring that the core business is well-managed and optimized for immediate profitability. This stage is critical for maintaining stability and sustaining revenue streams.

Horizon 2 shifts the focus toward strategic planning, where businesses begin to explore and develop emerging opportunities. This involves identifying potential areas for growth that can be cultivated over time, requiring a more forward-looking approach.

Horizon 3 is about tactical decision-making, where organizations must actively transition from their current state to future growth avenues. This horizon encourages innovation and the creation of viable options that can lead to new business models or products.

The accompanying graphic illustrates the relationship between profit and time across these horizons, highlighting how each requires distinct management strategies. The right-hand side of the slide outlines specific actions associated with each horizon: extending and defending core businesses in Horizon 1, building emerging businesses in Horizon 2, and creating viable options in Horizon 3.

This framework serves as a guide for leaders to prioritize initiatives that align with their long-term vision while ensuring that immediate operational needs are met. Understanding and applying this model can lead to more structured growth strategies and better resource allocation.

This slide is part of the McKinsey 3 Horizons of Growth PowerPoint presentation.

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