Helpsheet: Using the three horizons framework as a CEO

The three horizons framework helps leaders balance immediate organisational needs with long term sustainability and innovation.

Community CEOs often feel pulled toward urgent operational demands. This framework creates space to think about what must be sustained today, what must evolve, and what might shape the future.

Rather than choosing between the present and the future, the goal is to lead across all three horizons at the same time.

Horizon 1 focuses on the work that keeps the organisation operating today.

This includes programs, services, systems and funding that are already established and currently deliver value.

Typical CEO questions include:

• What must we protect because it delivers the core mission?

• Which programs are essential to our credibility and impact?

• Where are we vulnerable operationally or financially?

• What must we improve to maintain quality or compliance?

Common Horizon 1 activities:

• maintaining service delivery

• strengthening operational systems

• managing funding agreements

• supporting staff capability

• improving efficiency and accountability.

The risk in Horizon 1 is becoming trapped in short term survival.

Horizon 2 focuses on transition and improvement.

These are initiatives that adapt existing work to meet changing needs, funding models or community expectations.

Typical CEO questions include:

• What needs to evolve in the next two to three years?

• What services may need redesign or expansion?

• Where are new partnerships emerging?

• How are community needs changing?

Common Horizon 2 activities:

• program redesign

• new partnerships or collaborations

• funding diversification

• improved service models

• scaling effective initiatives.

The challenge in Horizon 2 is managing change without destabilising the organisation.

Horizon 3 focuses on innovation and emerging possibilities.

These ideas may not yet be viable or funded but could shape the organisation’s future impact.

Typical CEO questions include:

• What emerging community needs might shape the future?

• What new approaches could transform our impact?

• What early experiments could we explore?

• What signals are we seeing in policy, technology or funding?

Common Horizon 3 activities:

• small scale pilots or experiments

• exploring new service models

• strategic partnerships with new sectors

• testing technology or innovation.

The risk in Horizon 3 is investing too heavily in ideas that are not yet viable.

Effective CEOs pay attention to all three horizons.

A healthy organisation typically shows:

• strong Horizon 1 delivery

• active Horizon 2 adaptation

• some Horizon 3 exploration

If all energy sits in Horizon 1, the organisation may become stagnant.

If too much attention sits in Horizon 3, the organisation may become unstable.

Leadership involves balancing stability, adaptation and exploration.