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In 2000, McKinsey defined three horizons of growth*, based on the maturity and relative risk of different types of projects:

• Defending core business

• Nurturing emerging business

• Creating genuinely new business

We believe these three sustained growth strategies need to happen concurrently if a business is to thrive.

MAINTAIN

AND DEFEND

CORE BUSINESS

2018 TIME

VA

LU

E

*

* *

3

NURTURE

EMERGING

BUSINESS

CREATE

GENUINELY

NEW BUSINESS

2

1

Greatest profit

and cash flow

Emerging

opportunities

Ideas for

profitable growth

* Enduring Ideas: The three horizons of growth, McKinsey Quarterly, December 2009

MACQUARIE PERSPECTIVE 2018

McKinsey’s Three horizons of growth

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Executing this successfully will demand a new leadership mindset

Lower the cost to serve

Opportunities through adjacencies

Centre around the lifetime needs of

the client

Lower ing your cost to serve

through the use of new

technology ensures you s tay

compet i t ive in your core

business.

Finding adjacent revenue s t reams,

potent ia l ly through a broader

ecosystem of serv ices, a l lows you

to nur ture an emerging bus iness.

Focus ing on so lv ing the customer

problem prov ides the ideas

needed to fue l innovat ion - and

create a genuinely new bus iness.

MACQUARIE PERSPECTIVE 2018