McKinsey's 3 Horizons: Balanced Growth
Invest in 3 time horizons together: current (H1), next growth (H2), future innovation (H3). Neglecting any = slow death.
Goal
Beat single-horizon trap (everything in H1 "current", growth dries up) with smart resource allocation across horizons.
Steps
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1
H1: Current profitable business. Products, customers, ops now. Its profits fund H2 + H3.
Expected Outcome
Evidence base
School: Strategy / Innovation
Founders: McKinsey & Company · Mehrdad Baghai · Stephen Coley · David White (1999)
3 Horizons from McKinsey in "The Alchemy of Growth" (1999) by Mehrdad Baghai + Stephen Coley + David White. Based on 40 companies grown 50 yrs continuously.
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