The 3 horizons model, also known as the McKinsey horizon model, is a growth strategy framework that encourages teams to discover opportunities for growth without losing track of historical context and insights.

Created by the famed consulting group McKinsey & Company, this methodology seeks to fight inertia and inspire innovation. By crafting and analyzing your 3 horizons of growth as a team, you can discover fresh perspectives and ideas—collectively weighing the many moving influences, risk factors, and opportunities that might impact your predictions. When applied correctly, this framework can take some guesswork out of your strategic planning processes.

Every example of 3 horizons by McKinsey illuminates three distinct timeframes.

Horizon 1 generally explores short-term projects that will ripen in a few years, or a few months, depending on the industry. These projects tend to yield meaningful profits and cash flow.

Horizon 2 focuses on results about 2–5 years away. These projects may involve emergent technologies, innovated processes, or shifted revenue streams.

Horizon 3 is typically concerned with innovations 5–12 years down the line. These innovations may look less like specific projects and more like potential overhauls of system architecture.

A McKinsey strategic planning template can provide invaluable insight for making seemingly far-off company decisions. When you complete your McKinsey strategy template and view it all together, your team can easily see the next twelve or so years of company innovation. Inspired by an in-depth understanding of project values and potential opportunities, everyone will be raring to grow.

Ready to apply the three horizons framework to your own company? Begin with FigJam’s free editable template today.