Three Horizons to Trajectories

Today’s post is a joint article with Paul Edginton, a CEO, coach, mentor, and strategist. Thanks Paul, for sharing your thoughts with our readers. If you are interested in reaching out to Paul, details at the end.

If you would like to write a joint article, DM me on LinkedIn or comment on Substack!

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Over the past few weeks, we discussed the various ways to think about innovation (discipline, divergence and deciding). We have explored how AI can play a role in this.

Previously, we discussed the idea of Drucker’s Key questions and their connection to the Three Horizons Framework. Today we go further.

Once an organisation has considered Drucker’s key questions, or explored the three horizons:

We know what business we are in.

We’ve articulated a picture of where we’re heading relative to trends and market conditions.

We’ve clearly articulated our bold vision and targets.

The next challenge is to align resources to execute the plan. This is easier said than done.

A practical take on Drucker’s three time horizons and strategy is to consider how the three horizons form into an overarching language that helps the business connect with every manager and staff member in their work, every day.

A helpful way to think about it is to imagine that you can articulate the desired “trajectory” of the business.

Trajectory is the direction you want the organisation to go in — and allows for constant adjustments to stay on course.

Trajectory allows for learning and recalibration if the organisation (or parts of it) fall short or overshoot targets.

Trajectory allows to constant conversations about direction of travel and likely outcomes.

It invites the question for each leader and manager:

How are you and your team tracking towards our targets? What propulsion, resource, capacity or adjustments are you using to stay on track?

What is your trajectory relative to your colleagues, conditions and competitors?

Traditional strategies have formed a grand document, followed by publication and announcement. 

Often traditional strategies lose their sting as changes occur — staff change, conditions change, technology, regulation, margins all change.

It becomes clear that the trajectory of the organisation has been ignored in favour of sticking to the strategic plan, as each area sticks to what it thinks the plan still is — based on what it was when it was developed.

In the age of AI and rapid advancement, organisations can no longer rely simply on having a strategy. They must have a commitment to trajectory leadership and management.

To find out more, go to www.ceoadvantage.com.au or speak to Paul at paul@ceoadvantage.com.au