The document discusses the strategic choices and capabilities that companies must navigate over three horizons: consolidating current competitive advantages, developing the next competitive advantage, and exploring future options. It emphasizes the importance of reallocating resources to close strategic coherence gaps as firms evolve their capabilities to meet new strategic demands. The text outlines a framework for managing these transitions to sustain competitive advantage over time.

2. FAMILIAR STRATEGIC
CHOICES & CAPABILITIES
UNFAMILIAR STRATEGIC
CHOICES & CAPABILITIES
UNCERTAIN STRATEGIC
CHOICES & CAPABILITIES
Horizon 1
CONSOLIDATING THE
CURRENT COMPETITIVE
ADVANTAGE
Horizon 2
DEVELOPING THE
NEXT COMPETITIVE
ADVANTAGE
Horizon 3
EXPLORING OPTIONS FOR
FUTURE COMPETITIVE
ADVANTAGES
McKinsey’s frameworks “3 Horizons” and “Portfolio of Initiatives”
describe the evolution of companies and business lines from their
Current Competitive Advantage to their Next & Future ones.
TIME
PROFIT
& VALUE
© 2015 - Strategic Systems Consulting

3. As we consolidate our Current Competitive Advantage, we focus on
closing the Strategic Coherence Gaps between our Existing
Capabilities and those Required to support our Strategic Choices.
STRATEGIC
HORIZON
TODAY
STRATEGIC
DESTINATION
TIME
PROFIT
& VALUE
Current
COMPETITIVE
ADVANTAGE
© 2015 - Strategic Systems Consulting

4. Out Current Competitive Advantage is a Transient one. We have
to enlarge our Strategic Horizon and define a New Transient
Competitive Advantage and a New Strategic Destination.
TODAY
STRATEGIC
DESTINATION 1
TIME
PROFIT
& VALUE
New
COMPETITIVE
ADVANTAGE
STRATEGIC
HORIZON
STRATEGIC
DESTINATION 2
TODAY
STRATEGIC
DESTINATION
Current
COMPETITIVE
ADVANTAGE
© 2015 - Strategic Systems Consulting

5. TODAY
STRATEGIC
DESTINATION 1
TIME
PROFIT
& VALUE
STRATEGIC
DESTINATION 2
TODAY
STRATEGIC
HORIZON
STRATEGIC
DESTINATION
Because our Strategic Focus has shifted, we have to reallocate our
resources to close the New Strategic Coherence Gaps and to build
or adapt the Capabilities that must support our New Strategic Choices.
STRATEGIC
HORIZON
New
COMPETITIVE
ADVANTAGE
Current
COMPETITIVE
ADVANTAGE
© 2015 - Strategic Systems Consulting

6. Current
COMPETITIVE
ADVANTAGE
Current
COMPETITIVE
ADVANTAGE
TIME
PROFIT
& VALUE
STRATEGIC
DESTINATION
As we consolidate our New Competitive Advantage, we have to
extend our Strategic Horizon even more, exploring our possible
Future Strategic Destinations.
STRATEGIC
HORIZON
TODAY
POSSIBLE FUTURE
STRATEGIC
DESTINATIONS
EXPLORATORY
STRATEGIC
HORIZON
New
COMPETITIVE
ADVANTAGE
© 2015 - Strategic Systems Consulting

7. When we move along the Competitive Advantage Cycle, our Strategic
Focus is shifting, closing in sequence the Strategic Coherence Gaps for
the Consecutive Strategic Destinations that we are aiming to reach.
A B DC
TIME
STRATEGIC
COHERENCE
GAPS
TIME
STRATEGIC
FOCUS
(RESOURCES)
TIME
PROFIT
& VALUE
STRATEGIC
DESTINATION 2
POSSIBLE FUTURE
STRATEGIC
DESTINATIONS
STRATEGIC
DESTINATION 1
Current
COMPETITIVE
ADVANTAGE
New
COMPETITIVE
ADVANTAGE
A
B
C
D
© 2015 - Strategic Systems Consulting