Why Lateral Thinking is a Key Part of the Leader’s Toolkit

What is lateral thinking?

Lateral thinking, sometimes called divergent thinking, is a creative approach to problem-solving that seeks innovative solutions beyond the obvious. Developed by Edward de Bono in 1967, lateral thinking disrupts traditional thinking patterns, aiming to generate as many varied ideas as possible. Unlike linear-sequential thinking, which follows a logical, step-by-step process, and vertical thinking, which uses reason-based deductive methods to reach conclusions, lateral thinking involves imagination and intuition to explore possibilities outside existing information.

Vertical thinking, also known  as deductive reasoning, relies on gathering all available data and moving sequentially from one step to the next until reaching a logical conclusion. This method is what our brains naturally gravitate towards, as it provides clear, reasoned solutions. Linear thinking, similar to vertical thinking, also follows a step-by-step approach but is more focused on maintaining a consistent and logical flow from one point to another. Both linear and vertical thinking are essential for structured problem-solving but oftentimes limit creative potential.

Lateral thinking, on the other hand, involves looking for “out of the box” solutions that aren’t immediately apparent through straightforward logic or deductive reasoning. For instance, consider a company facing declining sales of its leather shoes. A vertical thinker might note that sales spike during promotions and suggest more frequent sales. However, a lateral thinker might observe a broader trend towards casual dressing and propose diversifying the product line to include more casual footwear or rebranding the existing products to appeal to modern, urban lifestyles.

These different thinking styles complement each other and can be used together to enhance problem-solving. Lateral thinking can spark  ideas which vertical thinking can then refine and implement effectively. For example, lateral thinking might generate a bold new product concept, while vertical thinking ensures that the concept is feasible and logically sound.

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The importance of lateral thinking in modern business

Lateral thinking is essential if you want to stay afloat competitive business environment. It enables leaders to abandon rigid structures and approach challenges with fresh perspectives, leading to innovative solutions that others don’t see. This creative problem-solving approach is particularly valuable in industries with fierce competition, where standing out requires more than just following established best practices. By using lateral reasoning, businesses can outcompete rivals.

Industries such as technology, retail, and finance all face intense competition where. traditional approaches might not suffice when logical solutions fail to address complex issues. Leaders who think laterally can identify unique opportunities and develop groundbreaking strategies that set their companies apart. A lateral thinking mindset promotes constant innovation, ensuring that businesses not only survive but thrive in saturated markets.

A word of warning: the mentality of “if it’s not broken, don’t fix it” can hinder growth and innovation. Thankfully, lateral thinking challenges this notion by encouraging leaders to always seek better solutions, even when current methods are effective. This approach ensures continuous improvement and adaptation, preventing stagnation.

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Lateral thinking in action: FromSoftware’s bold innovations

In the highly competitive video gaming industry, FromSoftware and its game director Hidetaka Miyazaki exemplify the power of lateral thinking. While major gaming companies have focused on creating open-world role-playing games with detailed maps, cinematic storytelling, and forgiving gameplay, Miyazaki pushed for a radically different approach. FromSoftware’s games, such as Demon’s Souls, Bloodborne, and Elden Ring, lack traditional maps, require players to seek out the story, impose significant consequences for mistakes, and maintain a high level of difficulty.

Miyazaki’s use of lateral reasoning recognised the market’s  desire for challenging, rewarding gameplay that doesn’t hold the player’s hand. This innovative approach resonated with gamers, leading to critical and financial success and even spawning a new genre known as “souls-like” games. By thinking laterally and diverging from industry norms, Miyazaki and FromSoftware carved out a unique niche, demonstrating the competitive edge that lateral thinking can provide.

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Why is lateral thinking so hard to learn?

Lateral thinking is challenging because it isn’t how our brains naturally operate. We tend to stick to familiar routines and solutions that have worked in the past, both individually and within organisations. This comfort in repetition makes it difficult to break away and think creatively. Many leaders emulate the behaviours of their predecessors, not realising that those very leaders succeeded by employing innovative, lateral reasoning.

Additionally, while some individuals possess a natural creative mindset, most people need to develop lateral thinking skills consciously. It requires effort and practice to break free from linear and vertical thinking patterns. Learning lateral thinking is like exercising a muscle – it takes time, dedication, and a willingness to embrace uncertainty and explore unconventional solutions.

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How to Learn Lateral Thinking

Developing lateral thinking skills involves recognising and challenging your usual decision-making patterns. Here are some practical steps to help you cultivate lateral reasoning:

Recognise your patterns:
Identify how you usually make decisions and how much you rely on established patterns. This awareness is the first step towards change.

Question the status quo:
Frequently reassess if something is working well. Avoid the mantra, “If it ain’t broken, don’t fix it” and instead think about how it could be even better.

Explore alternatives:
Before settling on the most logical and safe conclusion, genuinely consider out-of-the-box alternatives. This can often lead to significantly better results.

Embrace complex ideas:
Don’t dismiss ideas that seem too complicated or hard to implement. Think of ways to make them feasible.

Generate multiple options:
For every decision, list two or three alternatives. Even if they seem impractical, this practice enhances your ability to think creatively.

Challenge standard procedures:
Avoid defaulting to standard procedures simply because they are the easiest. Continuous improvement requires exploring alternative paths.

Learn continuously:
Integrate knowledge from various fields into your business to enhance lateral thinking.

Ask lateral questions:
Use questions like “Why can’t this solution work?”, and “What assumptions am I making that could be challenged?” to stimulate creative thinking.

By practicing these strategies, leaders and their teams can enhance your lateral thinking skills and become more adept at finding innovative solutions to complex problems.

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Harness the power of lateral thinking with TNM Coaching

At TNM Coaching, we understand the critical role that lateral thinking plays in leadership. Our expertise in fostering creative and innovative thinking can help you develop the skills needed to excel in a competitive business environment. Book a free discovery call with us to accelerate your journey towards becoming a more effective and imaginative leader.