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Gain insight into managing organizational growth by exploring three horizons methodology and overcoming common growth pitfalls. Learn strategies to assess and enhance your organizational health across core, emerging, and future activities.
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Understanding growth September 20th 2013 – Montreal
Maturity Growth Startup Organizations have a limited natural life span Impact Time
Healthy organizations renew across three horizons Horizon 3 Create viable options for the future Horizon 2 Build emerging opportunities Horizon 1 Extend and improve core activities
How healthy are your horizons? Horizon 1: • Delivering against mission? • Sustainable cost structure? • Stable or growing revenue? • Reasonably safe from external shocks? ? Horizon 2: • Initiatives that could become as big as current core? • Initiatives gaining momentum? • Attracting talent? ? Horizon 3: • Leadership dedicating real time to new opportunities? • New ideas markedly different than last year’s list? • Ideas started in concrete, measurable first steps? ?
Six unhealthy (but common) patterns • Under siege • Losing the right to grow • Running out of steam • Ideas but not building business • Inventing a new future • Failing to seed for the future
Overcoming inertia • Earn the right to grow • Achieve operational excellence • Cut out distracting/low potential activity • Build confidence of stakeholders • Build the resolve to grow • Gain senior team commitment • Set higher aspirations • Remove organizational barriers • Search for new opportunities • Create expansive mindset by redefining who you serve and how • Explore “seven ways to grow”
Building momentum • Staircases to growth • Build new ventures in small measured steps • Assemble or acquire new capabilities with each step • Active adaptation • Adapt the organization model as new ventures are launched and rolled out • Cocooning • Protect and nurture emerging new ventures
Staircases to growth Aspiration Existing capabilities New capabilities Required future capabilities Organization capabilities
One key is identifying your growth talent Horizon 3 Horizon 2 Horizon 1 • Operators (Horizon 1) • Analyze, plan, control • Minimize risk • Focused on current operations • Think linearly • Inside-out; product-based • Determine why things won’t work • Sustain current position • Growers (Horizon 2 & Horizon 3) • Do it, try it, fix it - experiment • Take risks • Create a whole new budget • Think laterally • Outside-in; market-based • Understand how to make it work • Sustain growth