In the three horizon framework, what does horizon one symbolize?

A) The initiatives you take to power mid-term success
B) The initiatives you take to power long-term success
C) The initiatives you choose to omit or de-prioritize
D) The initiatives you to take to power short-term success

Correct Answer is D) The initiatives you to take to power short-term success

Explanation:

he Three Horizon Framework is a strategic model that helps organizations to visualize and plan for the future. It was developed by Bill Sharpe, a futurist and systems theorist, and is based on the idea that there are three distinct horizons that organizations need to consider when planning their strategy. Each horizon represents a different timeframe, level of uncertainty, and focus. In this article, we will explore what horizon one symbolizes in the Three Horizon Framework.

Horizon one, also known as H1, represents the current business model and core competencies of an organization. It is the most familiar and predictable horizon and is characterized by stability, consistency, and optimization. Horizon one includes the products, services, and processes that an organization has developed and refined over time. These are the things that generate the majority of the organization’s revenue and profit.

In the context of the Three Horizon Framework, horizon one is where the organization’s current operations and business model are situated. It is the foundation upon which the organization has built its success, and it is where the organization’s existing customer base and market position reside.

Horizon one is important because it represents the organization’s current revenue stream and cash flow. It is the primary focus of most organizations and is where they devote the majority of their resources. In this horizon, organizations aim to optimize their current operations, streamline processes, and increase efficiency. They also focus on improving customer satisfaction, reducing costs, and increasing profitability.

Horizon one is also characterized by a high degree of certainty and a low level of risk. This is because the organization has a good understanding of its current market and has a proven track record of success. As a result, there is little need for experimentation or innovation in horizon one. Instead, the focus is on maintaining and improving the organization’s existing operations and market position.

However, there are also some risks associated with horizon one. One of the biggest risks is that the organization becomes complacent and fails to innovate. If an organization becomes too focused on optimizing its existing operations, it may miss out on new opportunities and fail to adapt to changes in the market. This can lead to a decline in revenue and profitability over time.

Another risk associated with horizon one is that the organization becomes too dependent on its existing customers and products. This can lead to a lack of diversification and make the organization vulnerable to changes in the market. For example, if a new competitor enters the market with a superior product, the organization may struggle to compete.

In order to avoid these risks, organizations need to balance their focus between horizon one and horizon two. Horizon two represents the exploration of new opportunities and the development of new business models. By investing in horizon two, organizations can ensure that they have a pipeline of new products and services that can replace those that become obsolete in horizon one.

In conclusion, horizon one in the Three Horizon Framework symbolizes an organization’s current business model and core competencies. It is characterized by stability, consistency, and optimization, and is where the majority of an organization’s revenue and profit are generated. Horizon one is important for organizations because it represents their current revenue stream and cash flow. However, there are also risks associated with horizon one, including complacency and a lack of innovation. To avoid these risks, organizations need to balance their focus between horizon one and horizon two, which represents the exploration of new opportunities and the development of new business models. By doing so, organizations can ensure that they are prepared for the future and able to adapt to changes in the market.

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