In one line

Balance the Now, the Next, and the New. Run today’s business while you build tomorrow’s and explore what’s after that.

What it is

The Three Horizons Model splits your work into three time‑frames so you don’t let urgent work kill important growth:

• Horizon 1 (Now) — Your current core: protect it, improve it, and keep the lights on.
• Horizon 2 (Next) — Promising initiatives that are starting to work: help them scale.
• Horizon 3 (New) — Early bets and bold ideas: learn fast and keep only the winners.

Quick starter

• List your top initiatives and tag each one H1, H2, or H3.
• Start with a simple 70 / 20 / 10 split (H1 / H2 / H3). Adjust to your reality.
• Give each horizon different success metrics:
  • H1 → revenue, margin, reliability.
  • H2 → adoption, retention, unit economics improving.
  • H3 → learning speed, cost per insight, option value.

How to apply (easy checklist)

• Audit time & spend: Is H1 crowding out H2/H3?
• Assign owners by horizon: who leads H1 ops, who grows H2, who explores H3?
• Set guardrails: write clear rules for when to double‑down, pause, or stop an idea.
• Review quarterly: re‑balance the portfolio; move items between horizons as they mature.

Common traps

• Treating horizons like a sequence. Work them in parallel.
• Judging H3 with H1 metrics. Use learning‑based metrics for early bets.
• No ownership for H2, so good ideas stall between core and new.

Team prompts

• What could we stop in H1 to fund H2/H3?
• Which H3 bets would we make if we had to replace 20% of revenue in 24 months?
• What proof would move an H3 idea into H2?

In one line

Why is this industry hard or easy to make money in? Five Forces shows where profits get squeezed and where power sits.

The five forces

• Rivalry — How intense is the fight among existing players?
• New entrants — How easy is it for newcomers to join?
• Substitutes — Can customers switch to something different?
• Buyer power — Can customers force prices down?
• Supplier power — Can suppliers raise prices or reduce quality?

How to run it (15–30 min)

1. Write one sentence on each force for your market. Keep it concrete.
2. Score each force Low / Medium / High. Add 1–2 facts as proof.
3. Pick the one force that hurts you most. Brainstorm 3 moves to shift it.

Plays that shift the forces

• Rivalry: differentiate, build loyalty, add complements, play a niche.
• Entrants: raise switching costs, build brand, lock key channels.
• Substitutes: bundle value, improve convenience, change the job‑to‑be‑done.
• Buyer power: segment pricing, offer unique outcomes, create communities.
• Supplier power: dual‑source, integrate upstream, design around scarce inputs.

Watch‑outs

• Forces are structural, not just about today’s tactics.
• Don’t stop at description — turn insights into moves.

In one line

Match what you’re good at to where the world is going. Keep it short and action‑oriented.

Build a tight SWOT

• Strengths (internal): unfair advantages you control.
• Weaknesses (internal): limits that slow you down.
• Opportunities (external): trends you can ride.
• Threats (external): risks that can hit you.

From list → choices (SO / WO / ST / WT)

• SO: Use a strength to capture an opportunity.
• WO: Fix a weakness to unlock an opportunity.
• ST: Use a strength to defend against a threat.
• WT: Reduce exposure or stop doing something.

Fast workshop (30–45 min)

1. Limit each quadrant to 3 items max with proof (data, not guesses).
2. Write 5–7 SO/WO/ST/WT moves. Assign an owner and a first milestone.
3. Add one stop‑doing decision to free resources.

Tip

Re‑run SWOT after doing PESTEL and Five Forces so your Opportunities/Threats reflect reality.

In one line

Scan the outside world so you’re not surprised. PESTEL = Political, Economic, Social, Technological, Environmental, Legal.

3 steps to use it

1. List signals for each letter. Add links or data points.
2. Rate each by impact (low/med/high) and uncertainty (low/high).
3. Build 2–3 scenarios from the most uncertain + high‑impact items. Plan moves for each.

What to decide

• Early warnings to watch (leading indicators).
• No‑regret moves (good in all scenarios).
• Big options to keep open (small bets with upside).

Pro tip

Pair PESTEL + Five Forces: macro drivers change industry power. Update both together twice a year.

In one line

See the battlefield. Plot competitors on two axes customers care about to spot crowded spaces and open niches.

Pick the right axes

Choose two dimensions that matter to buyers (e.g., price ↔ service level, convenience ↔ depth, self‑serve ↔ full‑service).

How to do it

1. List competitors (include alternatives and do‑nothing).
2. Pick two axes and draw a simple 2D map.
3. Place each player; size the dot by share or scale.
4. Circle clusters; mark mobility barriers (brand, capex, capabilities).
5. Mark white spaces and possible moves.

Decide your move

• Double‑down where you already win.
• Jump clusters with a new channel, bundle, or service model.
• Carve a niche that’s underserved but profitable.

Team prompts

• Which two axes best explain real customer choices?
• If we had to move one quadrant in 12 months, what must change?
• What capabilities stop rivals from entering our spot — and how do we strengthen them?

In one line

Four simple ways to grow: sell more of today’s products, find new markets, launch new products, or do both.

The four boxes

• Market penetration: Sell more of current products to current customers.
• Market development: Enter new markets with existing products.
• Product development: Create new products for existing customers.
• Diversification: New products + new markets (highest risk).

Quick starter

• List your top 3 growth moves. Place each in the right quadrant.
• Check risk level: the further right/down you go, the higher the risk.
• Balance your portfolio — don’t bet everything on diversification.

Team prompts

• Which current markets are still under-penetrated?
• What adjacent markets could we enter with minimal changes?
• Where do we need bold bets vs. safe bets?

In one line

Decide where to invest, hold, or exit based on market growth and your share.

The four quadrants

• Stars: High growth, high share — invest and grow fast.
• Cash cows: Low growth, high share — milk profits, fund others.
• Question marks: High growth, low share — decide: invest or drop.
• Dogs: Low growth, low share — exit or cut back.

Quick starter

• Map your products/business units. Place them on the 2x2 grid.
• Circle which generate cash vs. which consume it.
• Decide 1–2 shifts (e.g., turn a Question Mark into a Star).

Watch-outs

• It’s a portfolio tool, not a product-level tactic.
• Markets shift — revisit at least yearly.

In one line

Stop fighting rivals. Create uncontested market space where competition doesn’t matter.

The tools

• Strategy canvas: Compare your value curve with competitors’ across key factors.
• Four actions: Eliminate, Reduce, Raise, Create — reshape what customers value.

Quick starter

• List the main factors competitors compete on (price, speed, service, etc.).
• Mark which you can eliminate or reduce, and which new ones to raise or create.
• Sketch a new value curve that looks different from the industry norm.

Examples

• Cirque du Soleil cut costly animals (eliminate) and raised artistry (create).
• Southwest Airlines reduced luxury services and created low-cost, fun flights.

Team prompts

• What do we compete on today that customers barely value?
• What could we create that customers don’t expect?
• Where can we change the rules instead of playing by them?

In one line

Test if your resources are a true competitive advantage: Valuable, Rare, Inimitable, Organized.

The four tests

• Valuable: Does it improve efficiency, differentiation, or customer value?
• Rare: Do few or no competitors have it?
• Inimitable: Is it hard to copy (brand, culture, know-how)?
• Organized: Do you have the systems to capture the value?

Quick starter

• Pick your top 5 assets/capabilities. Test each against VRIO.
• Mark which are just table stakes vs. which are real advantages.
• Double-down on true advantages, fix gaps on “O.”

Team prompts

• Which of our strengths are actually rare, not just good?
• How can we make our capabilities harder to imitate?
• Do we have the structure to fully exploit our best resources?

In one line

Segment the market, target the right group, and position your offer clearly in their minds.

The three steps

• Segmentation: Break the market into meaningful groups (by needs, behavior, demographics, etc.).
• Targeting: Select the segment(s) where you can win — big enough, reachable, profitable.
• Positioning: Craft a simple message that shows how you’re different and why it matters.

Quick starter

• List 3–4 possible customer segments. Add proof (size, behavior, pain points).
• Score each on attractiveness and fit with your strengths.
• Pick one target and write a positioning statement:
  “For [target], we are the [category] that [unique benefit], unlike [main rival].”

Team prompts

• Are we spreading too thin across too many segments?
• What’s the one word/idea we want customers to associate with us?
• How do we reinforce our position at every touchpoint (product, pricing, service)?