Preeth Pandalay
An executive turned transformation consultant with 25+ years of learning, Preeth trains and coaches... Read more
An executive turned transformation consultant with 25+ years of learning, Preeth trains and coaches... Read more
SAFe®’s investment horizon model helps portfolios visualize their growth strategy over time in a simple manner. This framework proves invaluable to portfolio managers when ensuring their portfolios sustain and grow over the long term. The investment horizons help keep the focus on growth and innovation by balancing the needs of today with the envisioned future state. SAFe®’s Investment horizons categorize goals into four distinct horizons – Horizon 1 (Investing & extracting), Horizon 2 (Emerging), Horizon 3 (Evaluating), and Horizon 0 (Retiring).
Horizon 1 (Investing & Extracting) - This horizon represents the investments needed for today’s most significant assets generating revenue or helping the portfolio succeed. Most organizations’ primary focus is horizon 1, for it deals with current business (existing portfolios and customers) and is operational in nature. Horizon 1 investments are generally driven by customers (feature requests), board or investors (stock valuation), competitors, or cost advantage. SAFe® further divides Horizon 1 into two, namely -
Investing - These investments reflect solutions that require significant ongoing investment probably to support changing markets or technology.
Extracting - These investments represent stable solutions that deliver significant value with lower spending. Investments are made to assure continued value, profit, and cash flow.
Become a SAFe® Agilist - Enroll for the Leading SAFe® 5.1 Training with SAFe® Agilist Certification
The relevance of Horizon 2 & 3 investments is to bridge the gap between the reality of running the business today and innovating to be relevant tomorrow.
Horizon 3 (Evaluating) - Horizon 3 investments are dedicated to investigating new potential opportunities for profitable growth in the future. This could be creating entirely new elements for your business that don't exist today or even a change to the fundamental business model. Generally, these are exploratory and research activities that are often somewhat isolated from the current operating model.
Horizon 3 usually requires modest investments with an ROI period of 3 to 5 years. The few aspirational ideas and their emerging solutions that provide a sufficiently compelling return on investment typically continue to horizon two while the others are culled.
You might be interested in reading: Scaled Agile Framework®: Understand SAFe® and Its 4 Core Values
It is also a reality that few solutions in Horizon 2 may not deliver the anticipated returns, and the decision to stop will have to be taken. In such cases, some modest investment is likely still necessary to decommission the solution, as the horizon two solutions have usually made their way into the internal and external business ecosystem.
Start your career as a Product Owner/Product Manager - Sign up for the SAFe® Product Owner/ Product Manager (POPM) Training
An executive turned transformation consultant with 25+ years of learning, Preeth trains and coaches organizations to be agile and more importantly to stay agile. Preeth’s pragmatism finds its root in his diverse experience at various leadership positions.
WhatsApp UsI attended the virtual PSPO-I course offered by Agilemania, led by Sumeet Madan. The course was excellent and provided valuable insights that helped me successfully pass the exam. Additionally, the provided study materials were comprehensive and highly useful.
Sumeet was an excellent instructor. His knowledge on Scrum is excellent and he made the session interesting with his Funny but relevant examples. He also went beyond to explain how ChatGPT can be used as a tool to assist a product owner.
I attended the training class of Preeth Pandalay and he's an amazing trainer. Very knowledgeable, engaging and detailed in his sharing. He's very passionate about the subject and presented a lot of real life examples and useful explanations as well.
Wonderful Training session . Explained all the agile concepts and Roles and responsibilities of Scrum Team with practical approach.
Attended The PSPO-1 Training by Sumeet Madan (from Scrum.org registered )The training was quite insightful. Appreciate the timely resolution to the queries. Looking forward to achieve more knowledge and help gain Certification. Thank you
We will get back to you soon!
For a detailed enquiry, please write to us at connect@agilemania.com
We will get back to you soon!
For a detailed enquiry, please write to us at connect@agilemania.com