"Unlocking Growth: The Convergence of Three Horizons and Circular Growth Models"

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Sep 08, 2023

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"Unlocking Growth: The Convergence of Three Horizons and Circular Growth Models"

Introduction:

In the ever-evolving business landscape, companies face the constant challenge of balancing present performance with future opportunities for growth. To navigate this delicate balance, two frameworks emerge as valuable tools: the Three Horizons of Growth and the Circular Growth Model. While seemingly distinct, these frameworks share common points that, when combined, can unlock new possibilities for sustained success. In this article, we explore the convergence of these frameworks and delve into actionable advice for businesses to embrace this holistic approach to growth.

The Three Horizons of Growth:

The Three Horizons framework, introduced in "The Alchemy of Growth", provides a structured approach for companies to identify potential growth opportunities. Horizon one represents the core businesses that yield maximum profits and cash flow. These are often synonymous with the company's brand and established presence in the market. Horizon two encompasses emerging opportunities, such as entrepreneurial ventures, that have the potential to generate substantial profits in the future. While these opportunities may require significant investment, they hold promise for long-term growth. Lastly, Horizon three encompasses ideas for profitable growth further down the road, including research projects, pilot programs, or minority stakes in new businesses.

Circular Growth Model:

Contrasting the linear growth model, where progression is perceived as moving up or down a ladder, the circular growth model emphasizes continuous learning and improvement. In this model, growth is not defined by comparison to others but rather by an individual's unique growth loop. Each person competes against themselves, focusing on personal development and advancement within their own journey. By embracing this circular model, individuals fall in love with the process of growth, celebrating the small wins that accumulate over time. It is a paradigm shift from chasing a final victory to valuing the incremental progress and learning along the way.

Convergence: Leveraging the Power of Both Frameworks:

While the Three Horizons of Growth and the Circular Growth Model may appear distinct, they can be seamlessly integrated to unlock new avenues for sustained success. By incorporating the circular growth mindset within each horizon, businesses can foster a culture of continuous learning and improvement. Here are three actionable pieces of advice for businesses looking to embrace this holistic approach:

1. Embrace Iterative Thinking:

Encourage employees at all levels to adopt an iterative mindset within each horizon. By continuously refining and improving existing business operations (Horizon one), exploring emerging opportunities (Horizon two), and nurturing innovative ideas (Horizon three), companies can create a dynamic environment that values growth and adaptability.

2. Foster Collaboration and Feedback Loops:

Create a collaborative culture that promotes knowledge sharing and feedback loops. By facilitating open communication and creating platforms for cross-functional collaboration, businesses can leverage diverse perspectives and insights to fuel growth across all horizons. This approach also aligns with the circular growth model, where individuals learn from one another's experiences and continuously improve.

3. Emphasize Learning and Development:

Place a strong emphasis on employee learning and development, both within the existing business and in exploring new opportunities. Encourage individuals to embrace the process of growth and celebrate incremental progress. Provide resources and support for continuous learning, ensuring that employees have the necessary tools to navigate the ever-changing business landscape.

Conclusion:

In a world where the only constant is change, businesses must adapt and evolve to stay competitive. By integrating the Three Horizons of Growth framework with the Circular Growth Model, companies can unlock new possibilities for sustained success. Embracing iterative thinking, fostering collaboration and feedback loops, and emphasizing learning and development are actionable steps that businesses can take to embrace this holistic approach. As organizations navigate the complexities of growth, they can find solace in the convergence of enduring ideas and innovative insights, propelling them towards a future of sustainable growth.

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