Strategic horizons refer to different levels of planning that guide an organization’s efforts. These horizons help align short-term actions with long-term goals and provide a structured approach to managing product portfolios and innovation initiatives.

  1. Horizon 1 - Core Business: This horizon focuses on optimizing and enhancing the existing products and services within the current market. Examples include improving user experience, adding new features, and refining the existing value proposition.

  2. Horizon 2 - Adjacent Opportunities: Horizon 2 involves exploring opportunities in adjacent markets or customer segments that leverage existing capabilities. For instance, a language learning app expanding from teaching adults to offering language courses for children.

  3. Horizon 3 - Transformational Innovations: Horizon 3 is about pursuing disruptive and transformational innovations. This could involve exploring emerging technologies, creating entirely new product lines, or entering entirely new markets.

Strategic Horizons Model

Importance and Benefits of Strategic Horizons

  1. Alignment: Strategic horizons ensure that short-term actions are aligned with long-term strategic goals, preventing drift and maintaining a clear path forward.

  2. Risk Management: By balancing efforts across different horizons, organizations can manage risk more effectively. While Horizon 1 provides stability, Horizon 3 promotes innovation and adaptability.

  3. Innovation: Strategic horizons encourage a balanced innovation portfolio. Organizations can simultaneously improve existing products, explore adjacent opportunities, and pursue disruptive innovations.

  4. Resource Allocation: Horizons help allocate resources effectively. While Horizon 1 demands ongoing support, Horizon 2 and 3 require varying levels of investment and risk tolerance.

  5. Sustainability: The structured approach of strategic horizons supports long-term sustainability by fostering a culture of continuous improvement and innovation.

Rational for Using Strategic Horizons

Strategic horizons provide a framework that addresses both short-term tactical needs and long-term strategic vision. Differentiating product initiatives across these horizons enables organizations to diversify their efforts, manage risk, and drive innovation. Horizon 1 ensures the core business remains competitive, Horizon 2 allows for expansion, and Horizon 3 encourages groundbreaking innovations. Employing strategic horizons ensures a balanced approach that supports growth, adaptability, and sustained success.