Abstract
The Portfolio Horizons framework is an evolution that tries to combine the outputs from the Portfolio Value Gap framework with McKinsey’s 3-Horizons framework. It visualizes over time how each of the 3 types of outputs drive the Strategic Plan of each BU in the Division’s portfolio (or each Division in the Group’s portfolio) and whether the curves from their Financial Plans are coherently aligned, as well as it suggests a best-practice methodology for resource reallocation across the portfolio.
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Notes
- 1.
Income growth minus cost growth.
- 2.
Non-performing loans.
- 3.
Return on risk-weighted assets.
- 4.
Economic value added.
References
“The Alchemy of Growth” by Mehrad Baghai, Stephen Coley and David White (1999; McKinsey & Co—Perseus Publishing).
“Enduring Ideas: The Three Horizons of Growth” by Steve Coley (Dec. 09; McKinsey Quarterly).
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Gavieiro Besteiro, A. (2022). Portfolio Horizons. In: Strategy in Action. Management for Professionals. Springer, Cham. https://doi.org/10.1007/978-3-030-94759-0_8
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DOI: https://doi.org/10.1007/978-3-030-94759-0_8
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