Constraint Management & IT - 18 What are horizon models?


What are horizon models?


Theory of Constraints recognizes that the goal of most for-profit enterprises is to "make money now and in the future." Much emphasis has been placed on how to "make money now" with less emphasis on "in the future" because it's so open-ended.


The strategic horizons model instead splits the future into two parts: H3 is the distant future (5+ years), H2 is the near future (2-5 years), H1 is the current business. Thus, H1 is when the operations efficiency of constraint management matters, while H2 and H3 are when strategic effectiveness matters.


This distinction between H2 and H3 matters because H1 is often profitable without growth, H2 is often growth without profit, and H3 is the seeds of future business. Without adequate research and development in H3 it's easy for the product and business development pipelines in H2 to run dry, thereby stranding the enterprise in an H1 strategic trap as its competition surges ahead with innovations.


More applications of constraint management for IT are covered in "Exceeding the Goal."



To enhance your expertise, Marris Consulting organizes training sessions on Theory Of Constraints applied to production and projects environments



Marris Consulting, expert in Theory of Constraints & Critical Chain Project Management


Marris Consulting is an expert in the Theory of Constraints (ToC) and Critical Chain Project Management (CCPM). As industry consultants, we are focused on helping process and manufacturing industries reach their highest levels of performance by using Constraints Management  combined with Lean and Six Sigma. We also use Critical Chain Project Management which we sometimes combine with Lean engineering to improve project performance. If you are unsure about the actions which need to be implemented to improve operational efficiency, our industrial management consultants can also conduct a performance audit. Furthermore, our experts host numerous Theory of Constraints (ToC), lean and project management training sessions throughout the year.

About Marris Consulting

Marris Consulting is an industry consulting and training company specialized in the Theory of Constraints (ToC) and Critical Chain Project Management. We focus on improving the performance of manufacturing and process industries by using Constraints Management combined with Lean and Six Sigma. To boost project performance, we also use Critical Chain Project Management (CCPM), which we sometimes combine with Lean Engineering. Our 2-day performance audits, our performance consulting services and our project management, Lean, ToC & CCPM training by our industry consultants offer a wide range of solutions to help our clients around the world reach the highest possible levels of performance.

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