What is the 3 horizons model & how can you use it?

The 3 horizons model is a growth strategy framework developed by McKinsey that helps manage growth in a coordinated way. Though often confused with an innovation strategy framework, it should only be used to set or challenge a growth strategy, which helps inform an innovation strategy. The innovation strategy can then shape or challenge the growth strategy. The horizon model helps manage different visions for a company's future and guides conversations on grand innovation plans and their goals over time. It can aid portfolio management and growth strategy by providing a common language with which to understand and talk about the different kinds of growth. The model measures 3 horizons based on value and time, with horizon 1 innovations being short-term, horizon 2 innovations taking 2-5 years, and horizon 3 innovations being long-term projects that generally produce results in 5-12 years. Radical, disruptive, or architectural innovations can also be pursued in a horizon 1 or 2 timeframe. The horizon model and the innovation landscape model should be used separately and at relevant strategy stages, with the former employed first and the latter used to see what kinds of innovation should be pursued given the desired horizons.