In this article, we will explore three related concepts: literal thinking, creative (lateral) thinking, and the consequential phenomenon known as the “Black Swan Event.” While I’ve touched on these topics individually in the past, today, I’ll explain how they interconnect, particularly within the context of using Excel in business environments.
Literal vs. Lateral Thinking in Excel
Literal thinking refers to a narrow, straightforward approach—thinking “inside the box.” In contrast, lateral thinking encourages creative problem-solving—thinking “outside the box.” This distinction is especially important when discussing Excel usage in business processes.
To illustrate the difference, let’s use a simple analogy: driving a nail into wood. Most of us understand that you need a heavy, rigid object—such as a hammer—to impart momentum and drive the nail into the wood. This foundational understanding comes from watching others or from personal experience.
However, imagine someone who lacks this foundational knowledge and instead relies on limited, literal information. Picture an alien, unaware of the purpose of a hammer but armed with a toolbox containing a screwdriver. This alien has seen countless YouTube videos about screws and screwdrivers but has no concept of a hammer. Naturally, they would attempt to drive the nail into the wood using the screwdriver, despite it being the wrong tool for the job. This scenario represents literal thinking: using a tool based solely on visible associations without understanding the underlying principles.
In contrast, someone with foundational knowledge of physics and tools would recognize that while they might not have a hammer, they could improvise with a monkey wrench. Though not perfect, the wrench is much closer to the required tool because it shares key characteristics with the hammer—weight and rigidity. This is lateral thinking: using creativity to achieve the desired result by understanding the principles rather than rigidly sticking to a prescribed method.
Literal Thinking in Excel
Now, apply this analogy to Excel. Many users, influenced by social media tutorials and explainers, approach Excel in a literal way. They see the features of Excel demonstrated via screen recordings and how-to videos, which are great for showcasing individual functions but often miss the bigger picture. These tutorials focus on specific techniques—like dynamic arrays or formulas—without addressing the underlying business problems that Excel can solve.
This “inside the box” thinking leads to suboptimal results. A dynamic array might solve a particular task in isolation, but if you were building a system for a collaborative, enterprise-level environment, that solution could fall apart. The problem is not the tool (Excel), but how it is used.
The Black Swan Event
In many organizations, complex spreadsheet-based processes break down, and frustrations arise—what many call “Excel Hell.” IT departments and consultants often declare that these problems are inherent to Excel, suggesting that the solution is to invest millions in new software or cloud-based tools. However, this dismissal of Excel often results from literal thinking and a lack of lateral, creative problem-solving.
A Black Swan Event occurs when a solution emerges that challenges the status quo, solving a problem that was previously considered impossible. The process unfolds like this:
- Problem Definition: A business process is failing due to clunky, inefficient spreadsheet use. IT experts and consultants declare that Excel is not suitable for the task, citing technical limitations.
- Creative Solution: Someone comes along with lateral thinking and demonstrates how the problem can be solved within Excel using creative approaches. This proof of concept transforms the business process, and management is thrilled.
- The Aftermath: Once the solution is implemented and widely accepted, those who initially claimed it couldn’t be done will often claim that they knew how to do it all along. This is the classic Black Swan Event.
The Columbus Egg Analogy
To further illustrate this, let’s recall a famous story about Christopher Columbus. After discovering the New World, other sailors claimed that they could have done the same thing. In response, Columbus challenged them to stand a boiled egg on its end. After they all failed, he simply tapped the egg to flatten its end, enabling it to stand. The sailors protested, claiming they could have done that too—yet, they hadn’t.
This story parallels the Black Swan Event in business. Many will claim they “could have done that,” but only after someone else has solved the problem through lateral thinking.
The Impact in Excel Consulting
In my own consulting career, I’ve encountered numerous scenarios where management was told by IT or external consultants that a problem couldn’t be solved using Excel. Yet, by applying creative, lateral thinking, I’ve repeatedly demonstrated otherwise, transforming business processes and achieving remarkable results. Once these solutions are in place and delivering millions in value, those who initially said it couldn’t be done often backtrack, claiming they “always knew it could be done.”
This pattern has played out time and again in my work. The initial disbelief is followed by implementation and eventual success, and finally by the inevitable Black Swan moment, where those who said it couldn’t be done now claim ownership of the solution.
Conclusion
The difference between literal and lateral thinking is not just academic—it directly impacts business success. Literal thinking leads to suboptimal results, whereas lateral thinking unlocks new possibilities, especially when applied to tools like Excel. The Black Swan Event is a fascinating phenomenon that highlights how creativity can overturn long-held assumptions and deliver transformative results.
So, when faced with challenges in Excel—or in any business process—remember the value of thinking outside the box. While literal thinking may lead you to a dead end, lateral thinking could lead to the next Black Swan solution.
Thank you for reading. In the next article, I will explore specific case studies where lateral thinking in Excel transformed business processes, including scenarios where even the top experts had declared success impossible.
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