We have categorized 2 documents as McKinsey Three Horizons of Growth. All documents are displayed on this page.

When it comes to business growth, McKinsey's Three Horizons model stands as a premier framework, praised and utilized by the pioneers in the business world. As the CEO of GE, Jeff Immelt, famously said, "The Three Horizons framework was instrumental in helping us think about growth in a broad-based way."Learn more about McKinsey Three Horizons of Growth.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.


Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider
  •  
    "I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

    – Moritz Bernhoerster, Global Sourcing Director at Fortune 500
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

    – Michael Evans, Managing Director at Newport LLC
  •  
    "Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

    Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

    In today's environment where there are so "

    – Omar Hernán Montes Parra, CEO at Quantum SFE
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

    – Trevor Booth, Partner, Fast Forward Consulting



Flevy Management Insights: McKinsey Three Horizons of Growth

When it comes to business growth, McKinsey's Three Horizons model stands as a premier framework, praised and utilized by the pioneers in the business world. As the CEO of GE, Jeff Immelt, famously said, "The Three Horizons framework was instrumental in helping us think about growth in a broad-based way."

The Three Horizons framework was initially developed by McKinsey, one of the world's leading management consulting firms. It offers a strategic approach for companies to manage growth and identify potential opportunities by dividing their business goals into three distinct horizons:

  1. Horizon One is focused on defending and extending the current core business. These are mature, well-established products likely contributing a significant share to the company's cash flow and profitability.
  2. Horizon Two encompasses emerging opportunities or 'rising star' activities that could become significant parts of the company’s growth. These projects or ideas have a medium-term impact, with the potential to replace or transform the existing core business.
  3. Horizon Three consists of longer-term, paradigm-shifting ideas or ventures, essential for long-term growth, but currently may only be embryonic or conceptual in nature. They are exploratory and hold potentials for disruptive growth.

For effective implementation, take a look at these McKinsey Three Horizons of Growth best practices:

Benefits to Strategy Development and Risk Management

In Strategic Planning and Risk Management, the McKinsey Three Horizons Model offers several critical benefits. It enables a robust strategic discussion by integrating short term and long term goals. It also allows decision-makers to balance resource distribution across the different horizons. By identifying threats and opportunities across the three horizons, the model creates a broader perspective of strategic risk.

Explore related management topics: Strategic Planning Risk Management

Best Practices for Operationalizing the McKinsey Three Horizons Model

Though highly effective, applying the Three Horizons Model requires more than merely identifying the three horizons. Here are some key approaches to operationalize this framework:

  • Ensure the 'buy-in' of leadership for the model and the future vision. Without executive support, new ventures, potentially game-changing ideas, may struggle to gain traction.
  • Create cross-functional teams for each horizon, promoting not only Diversity and Inclusion but also encouraging Creativity and Innovation.
  • Regularly reassess and rebalance the portfolio, especially given the speed of Digital Transformation and market disruption.

Explore related management topics: Digital Transformation Disruption Leadership Creativity Innovation

Real-world Success: A McKinsey Case Study

The impact of the Three Horizons Model can be demonstrated in a McKinsey case study involving a major global company facing growth challenges. McKinsey brought in its expertise to implement the model, setting clear metrics for each horizon, identifying new opportunities, and reallocating resources accordingly. The result was a 30% increase in the company's share price within two years - an impressive testament to the value of McKinsey's Three Horizons Model.

Integrating the Three Horizons with Digital Transformation

In the dynamic era of rapid technology growth, it's crucial to align the Three Horizons framework with Digital Transformation. Business Transformation should ideally include considerations for leveraging emerging technologies in Horizon Two and Three, creating a culture of Innovation across all three horizons.

As we further dive into the age ruled by data and technology, the need for such an integrated, forward-looking, and strategic framework only rises. With its proven efficacy, the McKinsey's Three Horizons Model holds a promising solution to these evolving challenges.

Explore related management topics: Business Transformation

McKinsey Three Horizons of Growth FAQs

Here are our top-ranked questions that relate to McKinsey Three Horizons of Growth.

What role does sustainability play in shaping the initiatives of the Three Horizons, especially in Horizon Three?
Explore how Sustainability in Strategic Planning and Innovation shapes Horizon Three's future growth opportunities, ensuring long-term viability and competitive advantage. [Read full explanation]
How can the McKinsey Three Horizons Model guide companies in integrating digital transformation across all aspects of business?
The McKinsey Three Horizons Model guides digital transformation by optimizing current operations, investing in emerging opportunities, and innovating for the future, ensuring a balanced approach for sustained growth. [Read full explanation]
How does the McKinsey 3 Horizons Model assist in the integration of mergers and acquisitions into long-term strategic planning?
The McKinsey 3 Horizons Model aids in integrating M&A into Strategic Planning by categorizing acquisitions based on growth contribution and ensuring sustainable, long-term growth through balanced investment across all horizons. [Read full explanation]
What implications does the increasing importance of sustainability and ESG criteria have on Horizon 3 investments?
The growing emphasis on sustainability and ESG criteria is fundamentally transforming Horizon 3 investments, necessitating their integration into Strategic Planning, Operational Excellence, and stakeholder engagement to drive innovation, manage risks, and ensure long-term value creation. [Read full explanation]

Recommended Documents

Related Case Studies

Growth Strategy Redesign for Professional Services in Competitive Market

Scenario: The organization in question operates within the professional services industry, facing stagnation in its core offerings while grappling with the challenge of allocating resources effectively across the McKinsey Three Horizons of Growth framework.

Read Full Case Study

Telecom Infrastructure Expansion Strategy in D2C

Scenario: The organization is a mid-sized telecom provider specializing in direct-to-consumer services, facing stagnation in its core business and seeking to identify new growth avenues.

Read Full Case Study

Strategic Growth Framework for Space Technology Firm in Competitive Market

Scenario: A firm specializing in space technology is struggling to balance its current operations with innovation and new market expansion, in line with the McKinsey 3 Horizons Model.

Read Full Case Study

Luxury Brand Diversification Strategy Development

Scenario: The organization is a well-established luxury fashion house looking to innovate and expand its portfolio.

Read Full Case Study

Horizon Growth Strategy for Aerospace Manufacturer

Scenario: The organization is a leading player in the aerospace industry, grappling with the challenge of sustaining long-term growth amid rapid technological changes and competitive pressures.

Read Full Case Study

Industrial Chemicals Growth Strategy for Specialty Materials Firm

Scenario: The organization is a specialty chemicals producer in the industrial sector, grappling with the challenge of sustaining growth while maintaining profitability.

Read Full Case Study

Explore all Flevy Management Case Studies




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.