Innovation-Led Growth Strategy Playbook

Balancing core, adjacent, and transformational bets using the Three Horizons model

  • Executive
  • Intermediate
  • Template Included
Overview

A framework for allocating strategic attention and capital across near-term core growth, adjacent expansion, and longer-horizon transformational bets, so innovation investment doesn't collapse into either pure incrementalism or unfunded moonshots.

What's a reasonable split of investment across the three horizons?

A commonly cited starting ratio is roughly 70/20/10 (core/adjacent/ transformational), but the right split depends on industry maturity and competitive pressure — this playbook helps you set your own ratio deliberately rather than defaulting to one.

How is this different from a standard innovation pipeline?

Most innovation pipelines track projects by stage (idea, pilot, scale). This playbook adds a horizon lens on top, so leadership can see whether the pipeline is actually diversified across time horizons or quietly concentrated in Horizon 1.

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    Author
    I'm Mithun A. Sridharan, Founder of this website - Think Insights - on Strategy, Management Consulting, Leadership, Digital Transformation, and Data Literacy. Follow me on social media or connect with me on LinkedIn for updates.