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Three Horizons of Growth

Drew Cesario
The Three Horizons of Growth framework, introduced by McKinsey, is a strategic tool used to plan and manage growth. It divides growth initiatives into three horizons based on their time horizons and potential returns. This worksheet provides an outline of each horizon and space for you to brainstorm, plan, and manage growth-related projects for your organization.

*I have shortened the Horizons to reflect the reality Small to Medium sized enterprises are facing.

Horizon 1 (H1): Core Sustainable Business
Timeframe: Present - 6-12 Months
Description:
Focuses on optimizing and amplifying the sustainable impact of current products. This horizon ensures you defend and grow in your existing market by leveraging your eco-friendly offerings.

Key Questions:
What are the main revenue-generating activities in your core business today?
How can you optimize and defend your current core activities?
What channels are you ignoring or are underperforming within?
Your Notes:
Current Revenue Streams:



Optimization Opportunities:



Sales Channel Opportunities:



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lone road going to mountains
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Horizon 2 (H2): Emerging Eco-Oriented Opportunities
Timeframe: 1-2 Years
Description:
This horizon focuses on expanding into new opportunities that have the potential to be significant growth engines in the future but are still being nurtured and developed.

Key Questions:
What emerging trends or technologies could impact your industry?
Which new markets or segments can you explore?
How can you diversify your product or service offerings?

Your Notes:
Emerging Trends & Technologies:



Potential New Markets or Segments:



Diversification Opportunities:



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time lapsed photography of cumulus clouds
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Horizon 3 (H3): Long-term Innovations
Timeframe: 3+ Years
Description: This horizon encompasses ideas for potential growth in the distant future. These are typically bold and transformative innovations or ventures that could redefine the industry or the business.

Key Questions:
What radical shifts might redefine your industry in the future?
Which high-risk, high-reward projects are worth pursuing?
What partnerships or acquisitions could develop for the future?

Your Notes:
Potential Industry Shifts:



High-Risk, High-Reward Projects:



Potential Partnerships or Acquisitions:



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Conclusion & Green Action Steps:
Having considered each horizon, craft actionable steps for each phase. While immediate initiatives might get more attention due to current demand, ensure a balance across all horizons for long-term sustainable growth.

Immediate Steps:



Mid-Term Objectives:



Visionary Sustainable Goals:



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Revisit and refine your growth strategy periodically to adapt to evolving eco-trends and insights. Remember, in the world of sustainable CPG, the environment and society are integral stakeholders.

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Unlock strategic growth for your business with precision and partnership. Click below for a brief, free strategy session to set your path to success. Let's connect now.


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Let's Talk Growth
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