What is the Three Horizons Model and how can it be used for business growth?

The Three Horizons Model is a strategic framework developed by Baghai, Coley, and White in the Alchemy of Growth. It's used for managing growth and planning for innovation. The model divides growth strategies into three horizons based on their timeline and potential for business impact. Horizon 1 focuses on improving and expanding the current core business. Horizon 2 is about building new capabilities and ventures that can generate substantial profits in the future. Horizon 3 involves exploring completely new opportunities and ideas that could shape the business's future. By working on all three horizons simultaneously, a business can ensure short-term profitability and long-term sustainability.

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"The Three Horizons Model developed by Baghai, Coley and White in the Alchemy of Growth is a great way for leaders to start 2020 with clarity, drive and excitement. In Horizon 1, you're clear about your core business and how to expand it. In Horizon 2, you're focused on what aspects of the business you'll build for growth. And in Horizon 3, you're exploring new ideas that will shape your future," Goddard says.

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