Breaking Down the Three Horizons Framework

The thing about frameworks is....

...they're another tool in our tool kit. As with any tool, you can maximize its utility by knowing when to reach for it and how to wield it! I like to think of a framework as a guide and a way to structure my thinking in a specific way. However, frameworks can feel rigid and unforgiving, like you need to use them exactly as prescribed in order for them to be useful.

I disagree with this - we should encourage ourselves to take the pieces of a framework that we like and that works for us and tweak it to best fit our needs.

I've seen plenty of talented PM's struggle to apply certain frameworks to their unique problem context or circumstances - most often I hear "but then that that broke the framework" or a similar sentiment.

The truth is that if you understand the purpose of a framework - what type of problem it's designed to assist with - you can tweak it where needed. It's the old "you can't break the rules if you don't know them" idea.

You might be asking yourself - but how do I do this?

Making frameworks flexible

The key to making any framework flexible is to break it down into its most basic building blocks, and then understanding how these building blocks work together.

Take the Three Horizons Framework as an example. Its major building blocks are value, resources, and time. In the framework as it was written by McKinsey, these are defined in very specific ways. It is intended purpose is to help you allocate investment in an optimal way when you are pursuing multiple goals concurrently. McKinsey specifically frames it in the context of investing in existing vs new product or business lines.

However, with that understanding, you can adjust these definitions and apply it to nearly any situation. By being real about what kind and how many resources you're dealing with, you can get a picture of how much value (and what kind!) you can create over a period of time.

I use it in my personal life often, from small projects like planning a trip to large projects like a home remodel - even when these situations don't fit perfectly into the framework's intended use. It always helps me feel like I have a pragmatic understanding of what I need to put in and when, in order to reach my desired outcome. It keeps me honest about which of my resources I am contributing - time, money, energy, etc - and how much.