The Three Horizons Framework is based on the book "The Alchemy of Growth" by Mehrdad Baghai, Stephen Coley and David White in which they define three horizons for growth, based on a study of 40 companies. The resulting "Three Horizons Framework" by McKinsey is essentially a portfolio management exercise in which they look at every business activity through their "impact horizons" in terms of years: * Horizon One (H1) includes the core products and services which provide the majority of your product line’s current revenue * Horizon Two (H2) covers products that are relatively new and emerging in the product line, or existing products newly aimed at an unfamiliar market * Horizon Three (H3) contains potential new product opportunities that could generate profit and growth in the longer-term future This is similar to looking at different [[Types of Innovation]]. As a result this framework evolved in many different ways, however all of them define different horizons to create a helpful diagnostic tool as well as an outline for a strategic plan, mainly for [[Innovation Management]]. ## Different Horizons You don’t have to define the horizons as a function of time at all and instead look at an organizations capabilities and their ability to change, the risk or uncertainty or even other factors like technology, society or politics. ![[Types of Horizons.png]] Other typical examples: H1 | H2 | H3 ------------ | ------------ | ------------ Known to the organization | New to the organization | New to everyone Existing audience | Adjacent audience | New audience Existing market | Emerging market | Markets don't exist yet ## Articles & posts [The Three Horizons of innovation and culture change | by Daniel Christian Wahl | Activate The Future | Medium](https://medium.com/activate-the-future/the-three-horizons-of-innovation-and-culture-change-d9681b0e0b0f)