Horizon planning, based on McKinsey's Three Horizons model, sorts growth efforts into three horizons. Horizon 1 is the core business that funds today, Horizon 2 is the emerging opportunities scaling toward profit, and Horizon 3 is the speculative bets on the future. It keeps an organization investing in tomorrow while still running today.
The point of the model is balance across time. Left alone, organizations over-fund Horizon 1, because it is measurable and pays now, and starve the bets that become the next core business. Naming the horizons makes the imbalance visible and gives leadership a way to protect long-range work from short-term pressure.
Each horizon needs its own goals and its own metrics. Holding a Horizon 3 experiment to Horizon 1 revenue targets kills it before it can prove anything, so the measures have to match the maturity of the bet.
A software firm runs its mature platform as Horizon 1, scales a new analytics product as Horizon 2, and funds a small AI research team as Horizon 3, each judged on its own measures.
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