WHAT IS AN HORIZON ONE STRATEGY?

Horizon One Strategy is about taking care of and leveraging the core business.

The Strategy Book (available at halecg.com) contains 18 strategic planning tools to help you cultivate a strategic mindset and future proof your business.

One of the 18 tools is the Three Horizons Framework by McKinsey & Co.

Every forward-looking business needs to consider three future horizons. For many businesses right now, Horizon One Strategy is consuming all their energy.

HORIZON ONE STRATEGY

Horizon One Strategy is about taking care of and leveraging the core business. 

To do this well, we need to understand the importance of things like cash flow, asset performance and profitability. 

Indeed, maximising performance from our core business helps us build cash reserves and a beautiful war chest, in case something expected or unexpected comes flying in over the horizon.

QANTAS (QAN) HORIZON ONE STRATEGY

As I start to open my war chest and begin inspecting the emptying tide and plethora of buy options on global stock markets, I dropped QAN into one of my watch lists.

On 19 Dec 2019, QAN Shares were $7.40

Today QAN went to $2.05.

With cash reserves of around $100M and share-value now falling from $2B to $1B, Qantas must navigate cash flow, asset performance and profitability very carefully. 

QAN earnings (EBIT) last year were a handsome 8% and excellent for their industry. I expect that many airlines will go belly up in the coming year and a quick inspection of the most recent QAN Financial Statements is encouraging. 

A shock such as this pandemic has been part of QAN past risk scenario work, and the flying kangaroo has been quick to pivot, by reducing overheads, variable costs and workers, and carefully storing surplus aircraft and keeping engines operational. 

What future scenarios exist for your business?  

How will you pivot?

How has the recent royal commission, bushfires, drought, floods and pandemic impacted your industry?

What is your Horizon One Strategy?

 

About BLOG Author | John Hale – Strategic Futurist Speaker

John Hale is the founder of Hale Consulting Group and author of The Strategy Book. John has worked as an early stage investor and advisor for over twenty-years. He has worked with leaders from Fortune 500 and mid-sized companies to start-ups and public sector organisations. John has been a Visiting and Adjunct Professor teaching strategy, entrepreneurship, project management and ethics at various institutions including Singapore Management University, Bond University and Melbourne Business School.

John’s popular conference talks include:

Future-Proof – Create a strategic mindset
Future Customer – Shift loyalty to your brand
Future Culture – Nurture workforce talent
Digital Futures – Grow digital wings

If you feel it may be time change your strategic approach, contact me at john@halecg.com, to schedule a free thirty-minute phone call, to help map out your next steps.