Jeroen KraaijenbrinkJeroen Kraaijenbrink • 2ndStrategy and Leadership Consultant | Global Top 20 LinkedIn Creator | No-Nonsense Collaborator, Educator, Mentor and Author | Enabling Leaders to Improve Through Strategic Insight and Guided Execution |Strategy and Leadership Consultant | Global Top 20 LinkedIn Creator | No-Nonsense Collaborator, Educator, Mentor and Author | Enabling Leaders to Improve Through Strategic Insight and Guided Execution |
2d •
2d •
What is the right horizon for a strategy? 3 years, 5 years, more? It depends on what you are trying to achieve. There are four strategy horizons, each with their different purpose and timeline.
Any organization should at any point in time be involved in the short-term, mid-term and long-term. This means that you need to have your eyes on different horizon’s at the same time.
You can’t just focus on the short-term, because then you’re not prepared for the future. And you can’t just focus on the long-term, because then you can’t manage current affairs.
To balance your attention and focus on the right things, it is useful to be aware that there are four Strategic Horizons, each with their own specific orientation.
Horizon 1: Tactics (1-2 years)
Incremental improvement requiring minimal investment. The focus is on optimization of the existing core. Involves operational steps that can be taken with relatively high certainty.
Horizon 2: Strategy (2-5 years)
The typical timeline for strategic plans. The focus is on “step change” and investing in available opportunities. Data and evidence still have their place but uncertainty starts to creep in.
Horizon 3: Vision (5-10 years)
Venturing into the unknown. The focus is on blue sky thinking to create viable options for the future. You can describe a high-level vision, but there’s no linear way to get there anymore.
Horizon 4: System Change (10+ years):
Changing the rules of the game. The focus is on achieving ecosystem change together with others. Instead of prediction and planning you prepare to enlarge the realm of possibilities.
All four horizons are useful, but for very different reasons. The first two help you prepare for concrete actions and allow for linear, step-by-step planning. The latter two, on the other hand, are more speculative and require a more explorative and collaborative approach.
Which horizon requires more attention in your organization?
Credit: The Four Strategy Horizon’s model is inspired by a combination of McKinsey & Company’s 3 Horizons Model and Amy Webb’s HBR article “How to Do Strategic Planning Like a Futurist”
Any organization should at any point in time be involved in the short-term, mid-term and long-term. This means that you need to have your eyes on different horizon’s at the same time.
You can’t just focus on the short-term, because then you’re not prepared for the future. And you can’t just focus on the long-term, because then you can’t manage current affairs.
To balance your attention and focus on the right things, it is useful to be aware that there are four Strategic Horizons, each with their own specific orientation.
Horizon 1: Tactics (1-2 years)
Incremental improvement requiring minimal investment. The focus is on optimization of the existing core. Involves operational steps that can be taken with relatively high certainty.
Horizon 2: Strategy (2-5 years)
The typical timeline for strategic plans. The focus is on “step change” and investing in available opportunities. Data and evidence still have their place but uncertainty starts to creep in.
Horizon 3: Vision (5-10 years)
Venturing into the unknown. The focus is on blue sky thinking to create viable options for the future. You can describe a high-level vision, but there’s no linear way to get there anymore.
Horizon 4: System Change (10+ years):
Changing the rules of the game. The focus is on achieving ecosystem change together with others. Instead of prediction and planning you prepare to enlarge the realm of possibilities.
All four horizons are useful, but for very different reasons. The first two help you prepare for concrete actions and allow for linear, step-by-step planning. The latter two, on the other hand, are more speculative and require a more explorative and collaborative approach.
Which horizon requires more attention in your organization?
Credit: The Four Strategy Horizon’s model is inspired by a combination of McKinsey & Company’s 3 Horizons Model and Amy Webb’s HBR article “How to Do Strategic Planning Like a Futurist”
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