Why horizontal and vertical development are the keys to future success

For CEOs and business leaders today, their role extends beyond the typical challenges of ensuring profitability and executing the business strategy. They are also responsible for managing tensions between customers who want climate-conscious products and business operations, employee physical and mental health care, and the transition to a hybrid work environment. Furthermore, CEOs need to consider exponential rates of change in technology (including AI and robotics), digital currency disruptions, the impacts of globalization and geopolitics (such as shifts in power), as well as social media.
Today, leaders, organizations, and societies face ever accelerating rates of change and disruption. However, the individual and collective capacity to keep up with change is not growing at the same rate. The rate of change is greater than peoples’ capacity to learn and adapt along with it.
Research by Lectica[1] shows a significant gap between leadership capability and the complexity leaders face, referred to as the “complexity crisis.” The type of development needed to prepare for this reality is not just for senior leaders, and it’s not just about learning new knowledge, skills, and information.
This new approach is called vertical development. Many leaders are now becoming aware that this type of development is important. However, we have yet to see an organization that has unlocked the full power of vertical development interventions.
What is vertical development?
We define vertical development as the development of a leader’s worldview — deepening, expanding, broadening, and transforming their mindsets. This impacts leaders’ behavior and, therefore, results. Put simply, horizontal development is more about competency, and vertical development is more about capacity. Think about expanding development as if it were a glass of water. Adding water to a glass is horizontal expansion, but increasing the size of the glass is vertical expansion. Or, take cell phone operating systems: horizontal growth is about adding more apps; vertical development is about upgrading the operating system. Vertical development means that you can add apps with the ability to do more complex tasks than the previous operating system could handle.
Einstein is known to have said, “We can't solve problems by using the same kind of thinking we used when we created them." You can’t solve the problems leaders face today by adding new apps – you need to upgrade your operating system. Leaders today face more and more complex challenges. Adding new competencies, skills, and knowledge is not enough. Leaders’ development also needs to include the vertical dimension of growth so that they can see from a different perspective, find new and creative solutions, act with greater wisdom and capacity, and have a transformative impact within and beyond your organization. This is the type of learning that leaders need in order to meet the exponential rate of change.
In Harvard Business Review, Torbert (2005) found that five out of ten CEOs from various companies were measured at the Strategist level (an advanced level of vertical development), while the other five were measured at lower stages of vertical development. Of the five Strategists, all had successfully implemented organizational transformations in a period of four years, which improved the company’s profitability, market share, and reputation. For the other CEOs, only two succeeded in doing the same.
How do you facilitate vertical development in your organization?
Leaders cannot be forced to grow vertically. It is not the same as horizontal development, where knowledge sharing, training, skill development, or practicing a new behavior are enough. Growth occurs differently in vertical development.Vertical development is about expanding your mindset — changing how you think and behave. Mindset refers to the mental models you engage when you are thinking, as well as your sense of identity.
Vertical development isn’t about training a leader in skills. It’s about transforming the ways a leader thinks, which will impact what they do and how they behave. In vertical development, you become more adaptable, self-aware, and collaborative, with the ability to span boundaries and networks.[2]
We know from research at the Centre for Creative Leadership (CCL 2020) that three aspects facilitate vertical development growth:
- Heat experiences – experiences where you face a complex situation that disrupts your habitual way of thinking.
- Colliding perspectives – when you are exposed to others who have different worldviews, opinions, and backgrounds, your own mental model of the world is challenged through these experiences.
- Elevated sense-making – as you reflect and make sense of the changes in worldview and experiences, you have the opportunity to enlarge your worldview.
By including all three of these aspects in your interventions, you will create prime conditions for vertical development.
Here is one example, which is designed in the context of executing a new business strategy through people:
- Heat experiences: Leveraging business simulations, participants (dozens or thousands) form groups with other leaders to practice running a modeled version of their business environment. This allows them to align and live the new business strategy or transformation. Leaders are removed from their comfort zones and placed into complex situations, which enables them to grow. Sometimes leaders’ behaviors are observed to offer insights and additional challenges, which turns up the “heat.”
- Colliding perspectives: Leaders meet others from different functions and levels to grapple with the simulated challenges in small groups to execute the new strategy. Here, leaders’ mental models are challenged through interactions with their peers. Each individual brings a different perspective or worldview and represents a different part of the business. Doing so reduces the polarity of views between groups, such as sales and operations, which can be a powerful tool in preparing leaders to execute a new strategy successfully. Without an intervention like this, these business siloes typically lead to stagnation or slow progress.
- Elevated sense-making: Through mindset coaching, leaders get the opportunity to step back, make sense of things, and apply their learnings and shifts in worldview. Using a coaching approach that specifically focuses on mindsets or changing worldview is critical to enable this change as it provides critical support for individuals to make the necessary shift.It is also important to note here: not everyone will develop vertically. Some leaders will be a driving force for integrating a vertical change, but others may not be ready for such a shift. It is important to facilitate both vertical and horizontal development, and given the current climate, ensure vertical development is included.
Heat experiences, colliding perspectives, and elevated sense-making should be integrated into all of your interventions, enabling you to build the vertical development foundation your leaders need to have the greatest possible impact. When leaders’ worldviews are narrow, their range of choice and creativity is also narrow. As they expand, they will see more, experience more and be able to lead with more. When your leadership development interventions deliberately invite leaders to shift their perspectives and worldview, while also providing new knowledge, skills, and competencies, you empower and unleash your leaders to lead in our complex, globally interconnected world.
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Last night I started reading a book by Irvin Yalom, a psychiatrist who has written several novels that I’ve loved. But right now I’m reading something different—a book of short lessons he’s learned from many years of working with patients.
Early in his career, Yalom was inspired by something he read. The gist of it was that all people have a natural tendency to want to grow and become fulfilled—just an acorn will grow up to become an oak—as long as there are no obstacles in the way. So the job of the psychotherapist was to eliminate the obstacles to growth.
This was a eureka moment for Yalom. At the time, he was treating a young widow. Suffering through grief for a long while, she wanted help because she had a “failed heart”—an inability ever to love again.
Yalom had felt overwhelmed. How could he possibly change someone’s inability to love? But now he looked at it differently. He could dedicate himself to identifying and eliminating the obstacles that kept her from loving.
So they worked on that—her feelings of disloyalty to her late husband, her sense that she was somehow responsible for his death, and the fear of loss that falling in love again would mean. Eventually they eliminated all of the obstacles. Then her natural ability to love—and grow—returned. She remarried.
Reading this story made me think of the responsibility of leaders toward the people they need to develop—and for the growth and learning that leaders themselves require to be the best that they can be.
Many leadership development challenges seem overwhelming—even impossible. The leaders that we coach usually have a list of areas where they want to get better, but how? How do you “build better relationships with your peers and direct reports”? How are you supposed to “get out of the weeds and demonstrate enterprise-wide thinking” or “build executive presence”? All of these goals are as abstract as they are huge.
So the best approach is to not focus on the huge and fuzzy goal. What we try to do is to break these goals down into concrete actions through working on real-time business problems. To put it simply, though, we do just as Yalom does: We identify the obstacles and work toward knocking them off, one at a time.
Leadership development is not usually a quick fix. You’re not going to develop executive presence through a half-day workshop or a one-time meeting. If you’re interested in meaningful, lasting growth—whether for yourself or for those who work for you—it’s a commitment.
But don’t ever forget that we’re all capable of growth throughout life and our careers. The trick is to find the right coach or mentor who will guide you through that obstacle course.

In my work as an executive coach, I meet at least once a month with each of my coaching clients.
I often talk to them on the phone and exchange emails with them as we work on their real-time business challenges. So, what happens in those conversations? Recurring themes start to come up. I find that many leaders have a “talk track” of words and phrases that they use all the time—without always being aware of the impact. For better or worse, this talk track ends up becoming part of their executive presence and their brand as a leader.
One of my clients had a talk track for many years that led to a reputation for negativity. In one meeting alone, I noticed that he had described about ten different work experiences as “nightmares.” Strong word! So we talked about this talk track. And the next time I heard him lapse into that way of talking, I decided to delve into it. “What I just heard from you was an example of that ‘talk track’ we’ve talked about,” I said. “So let’s talk about this. You say it was a ‘nightmare.’ Okay—why do you call it a nightmare?”
The upshot was that he had made a sales presentation but didn’t get the deal. I said, “Let’s use accurate language to describe the situation.” Was it a nightmare? No. Maybe it was a disappointment. Maybe he could have said, “Unfortunately, we didn’t get the deal” or “They decided to go with another vendor” and state why, objectively. My goal was to get him to stop “catastrophizing” when something didn’t work out.
This leader didn’t want to be defined by that negative “talk track” anymore. So I told him that the only way to do that is to turn up the volume on a very different talk track—one that captures the brand and presence that you want to project.
I’ve had clients who always talked about how difficult or challenging or complex things seemed to them. You’ve probably had a boss or colleague with any number of talk-track themes:
- “I’m so exhausted/overwhelmed/unhappy/unappreciated….”
- “Everyone here is useless/stupid/incompetent….”
- “It’s such a difficult environment/project/client/travel schedule…”
- “That will never work/We won’t get that deal/It’s a dumb idea/What were they thinking?”
Often people aren’t even aware of how much they harp on a conversational theme and how negatively this lack of executive presence is affecting their professional brand. So what can you do to make sure your talk track is working for you and not against you as a leader? Take these four steps:
1. Identify your talk-track themes.
What are the words and phrases that you find yourself constantly using in conversations at work? Write down the things you seem to say almost every day—or think about what themes come up all the time for you in conversation at work or elsewhere.
2. Consider the impact of your talk track.
As a leader, your words carry more weight than others. You’re setting the tone for your team or division or organization. Whether that tone is absurdly optimistic, cynical, critical, upbeat, energized, or overly emotional, it’s going to be the model for others. Make sure that your talk track is consistent with the values and behaviors you want to drive.
3. Challenge the reality of your talk track.
How accurate is your talk track? Do you have a natural tendency to see the part of the glass that’s empty? How do you respond to setbacks? Do you gloss over the pain? Do you make a mountain out of a molehill? It’s crucial for leaders to be balanced, objective, and real about what’s happening. Your language choices need to reflect that.
4. Consider what you could say differently.
It’s easy to lapse into your talk track. When you catch yourself saying the same old things, try to catch yourself as if an alarm was going off. Can you find another way to say it—something that’s consistent with the brand and presence you want to project.
Don’t get me wrong. Leaders do need to be “real” about challenges and setbacks, and a somber tone may be appropriate and even helpful at times. The goal is to become more aware of your talk track and what it’s doing for you and others. As a leader, people take their cues from you. Before you know it, your talk track can dominate or drive the culture.
Changing your talk track is a challenge. Our ways of talking and viewing the world are pretty ingrained through several decades of life experiences. But change is also very possible. Pump up the volume on a more positive talk track for the holidays, and your presence will be viewed as a gift.

A while back I heard a few people talking about public speaking. Person A was talking about their anxiety about making presentations. Trying to make him feel better, Person B said, “Public speaking is just like riding a bike!”
That got my attention. It seemed to be a comforting little sound bite. The only problem was that it was wrong. Public speaking is not like riding a bike. But it got me thinking about leadership communication and learning in general.
What does it mean if we say that something is like learning to ride a bike? We’re saying that it’s a skill that initially may seem pretty difficult to learn… but once we figure it out, we can do it successfully without thinking—even if we don’t do it at all for years at a time. It’s the reassuring idea that you’ve acquired a skill that you will never lose.
There’s no question that we all learn many skills that are like riding a bike. Driving is a good example. Most of us were white-knuckle drivers when we first got behind the wheel, but what about now? On long highway drives, I sometimes snap out of a daydream and realize I have no memory of anything that happened on the road in the last 15 minutes. That’s because I don’t have to think about driving when I do it—not unless there is intense traffic or some other unusual circumstance.
Many other skills are the same—reading, typing, doing simple math in your head, and so on. But quite a few sophisticated skills are quite unlike riding a bike. In other words, there are skills that are definitely learnable and where your level of mastery can improve substantially. However, you’ll probably never be really great at these skills without vigilant, ongoing practice, preparation, reflection, and reinforcement.
Some examples that come to mind with leadership communication: Selling, managing change, inspiring your teams, and, yes, public speaking. What’s so different about these areas? A few things:
- They involve an audience. If you were making your first speech in several months or years, would you find that you could do it almost unconsciously? I couldn’t. You can never be on auto-pilot when you’re delivering any sort of message to an audience. Just as the saying goes that you can never step in the same river twice, no two audiences are ever the same—even if you’re speaking to your internal teams each quarter. All sorts of circumstances change regularly, and you have to consciously adjust your message to address the ever-evolving needs of your audience.
- To maintain performance at a high level, sophisticated skills require ongoing practice. Yo-Yo Ma may be the world’s best cellist, but he estimates that he still puts in roughly 2,000 hours of practice each year. That’s an average of 5.5 hours daily. If he stopped practicing altogether, he obviously could still play the cello. But he wouldn’t be the best cellist for much longer.
- Skill mastery typically requires continual learning and reinforcement over time. Practice is critical, but it’s not sufficient. When you think about areas such as selling, motivating, and public speaking, there is always more to learn. There is evidence now that 90% of what we learn at a workshop, for example, dissipates within one year. To ensure the needle keeps moving in the right direction, you need to be a perpetual student. That may involve reading about the subject, hearing about it, going to a workshop, and getting expert advice. Whether you’re a tennis pro, a psychiatrist, or a VP of Sales, having a coach to help you with your real-time challenges can have an enormous impact to give you that reinforcement over time.
As a leader, you’ll no doubt hear from companies that want to offer you “quick-fix” solutions for perpetual leadership development challenges—areas such as executive presence, employee engagement, and public speaking.
But lasting, meaningful mastery is not a quick fix. Sophisticated skills need reinforcement: A better motto for these skills would be “use it or lose it.” Because some things are quite unlike riding a bike,
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Candidates now arrive at interviews pre-coached by AI, with their resumes optimized to pass every checkpoint. Polish has stopped being a signal. The traditional hiring process was built to read exactly the cues that AI is now best at producing, and the signals hiring managers once relied on have weakened as a result. And for roles where the wrong hire carries real business consequences, losing the ability to tell who will actually perform is not a minor inconvenience. It is a material risk, and it exposes the business to unnecessary turnover, reduced performance, and heavier investment for talent growth and development.
So how do you observe the behaviors that matter most, before someone is in the role?
Not by asking better questions, but rather by putting candidates in situations designed to elicit that behavior.
The limits of predicting from paper
Credentials tell you what someone has done. Structured interviews tell you what someone says they would do. Neither lets you observe what they actually do in the moments that count.
This distinction matters most in client-facing, relationship-driven roles, where the performance gap between a strong hire and a weak one plays out in real business outcomes (revenue, retention, client growth). Organizations that hire at scale in these roles carry that gap across hundreds of decisions at a time.
The better approach is to watch candidates do the work before you hire them. Put them in simulated, role-relevant scenarios, and pair the simulation with a second, different kind of measure so no single method carries the whole decision. That combination is what lets you evaluate real performance before anyone is in the role. Organization-specific simulations provide a clear read on who is ready and capable of performing on day one. In a world of AI-supported candidate signals, the use of simulations makes the process harder to prep for. It is harder to fake. And, when designed well, it is substantially more predictive than other hiring methods.
What counts as evidence
Claims about predictive power are easy to make. Evidence for them is rarer than you would expect.
A predictive validity study, the kind that links pre-hire assessment scores to how someone actually performs once hired, is some of the hardest evidence to produce and the rarest to see. Many assessments are validated against proxies: another test, or a theoretical model of the role, rather than real results on the job. Connecting scores to concrete business outcomes and doing the statistical work to show the link holds, takes years of shared data and a level of commitment from both the assessment provider and the client that most partnerships never reach. That is precisely why it is worth asking for. A provider who can show how assessment scores track to training completion, retention, and first-year output is offering something categorically different from one who can only show a correlation with another test.
Why simulation holds up where other methods do not
When a candidate sits across from a trained assessor (someone playing the client or prospect on the other side of the conversation) and has to work through a real situation, they cannot rely on a rehearsed answer. The scenario is specific. The stakes feel real. What you see is close to what you would get on the job.
That is the value of simulation-based assessment: it does not test what candidates know about the role.
It shows how they use what they know when a real person is on the other side of the conversation, before the stakes are real.
For roles that carry significant business responsibility, this distinction is the whole game. The cost of the wrong hire in a high-stakes client-facing role is not just a missed quota for a quarter - It plays out in relationships that do not develop, clients who leave, and productivity losses that compound over time. Getting those hiring decisions right, at scale, with consistency, requires methods that are built for predictive accuracy, not just candidate experience or hiring speed.
What this means for how organizations think about hiring
Most organizations are still optimizing the wrong things in their hiring process. They invest heavily in employer branding, application flow, and interview structure, all of which matter, but less in the core question: does our hiring process actually predict who will succeed in this role?
AI has sharpened the stakes here. If every candidate can present as polished and prepared, screening based on presentation becomes less useful. What holds up is direct observation of the behaviors that the job requires.
A few principles worth building from:
- Measure what the job requires, not what is easy to measure. Cognitive tests and personality questionnaires have their place, but they do not look much like the job. The closer the assessment is to the actual work, the better it predicts performance in it.
- Ask what your assessment predicts. Training completion? Retention? First-year output? Most organizations cannot answer that question today, largely because providers have rarely been asked to prove it. It is a fair thing to ask for.
- Take the human element seriously. In a simulation, a candidate is having a real conversation, responding in real time, navigating a situation that requires judgment. Even with the help of AI, that is hard to game. And it remains one of the strongest predictors of on-the-job performance available.
The data exists to make hiring decisions more accurate, fairer, and more directly tied to business outcomes. For organizations operating in high-stakes roles at scale, there is too much on the line to rely on methods that cannot hold up to that standard.
You may be interested in BTS’ thought leadership in the five talent shifts AI is forcing now.

La IA ya forma parte del día a día de las ventas. Hoy cualquier asesor puede llegar a una reunión con datos, tendencias e insights generados en segundos. Sin embargo, disponer de más información no garantiza conversaciones de mayor valor.
A través de una experiencia real con un consultor comercial, este artículo explica por qué la inteligencia artificial funciona como un GPS: ayuda a interpretar el entorno, pero no conduce la conversación ni entiende las prioridades del cliente.
En este artículo descubrirás:
- Por qué el acceso a la información ya no supone una ventaja competitiva.
- La importancia del business acumen para interpretar los datos con criterio.
- Cómo hablar el lenguaje del cliente genera credibilidad y diferenciación.
- Por qué las relaciones B2B evolucionan hacia relaciones P2P basadas en la confianza.
- Qué capacidades consultivas seguirán siendo exclusivamente humanas incluso en la era de la IA.
La tecnología seguirá evolucionando, pero la ventaja competitiva estará en quienes sean capaces de combinar inteligencia artificial con conversaciones centradas en el cliente, pensamiento estratégico y relaciones de largo plazo.

Leadership is the work of creating shared understanding, and language is the primary tool for doing it. Yet we spend remarkably little time examining our words. Every decision, expectation, priority, and piece of feedback reaches another person through words. If those words aren't doing the job, neither is the leadership.
The lighthouse
Some years ago, a large company hired a strategy consulting firm to rethink its leadership model. The firm came back with a beautifully produced framework built around a central metaphor: the lighthouse.
Leaders, the model declared, should be lighthouses.
The metaphor quickly found its way into playbooks, performance reviews, onboarding decks, and town halls. People repeated it with the confidence of those who had paid a lot of money for it.
There was just one problem: nobody could agree on what a lighthouse was supposed to do.
Was it warning people away from danger? Guiding them toward a destination? Standing firm while everything else changed?
Eventually, the company hired another team to translate the metaphor into specific, observable leadership behaviors.
It was an expensive way to discover that a word everyone confidently repeated wasn't creating nearly as much shared understanding asthey thought.
Why jargon prevails
- Parking lot that
- Double-click
- Close the loop
Business jargon survives because it’s largely designed to manage social risk. Using it signals, I know how this world works. It demonstrates membership, competence, and credibility.
Business is messy, and leaders don't always have complete information. Abstract language lets us project confidence while preserving flexibility.
Altitude without traction
Specific language creates accountability. The more specific you are, the easier it is for people to disagree, question your thinking, orhold you accountable. That's part of the appeal of jargon. It creates distance between the speaker and the detail. The more abstract and elevated your language, the more strategic you sound.
A 2020 study by Harvard Business School professors Laura Huang and Andy Wu, published in the Academy ofManagement Journal, analyzed over 1,000 early-stage startup pitches and found that founders who spoke in abstract, visionary terms were significantly more likely to advance in the funding process.
A separate study, published in Applied Cognitive Psychology in 2025, found the other side: jargon raises how credible a speaker appears and lowers how much the audience retains.
The very language that helps people see you as a leader can make you less effective once you're leading.
The most trusted leaders tend to be the ones who resist impressive-sounding language and say the plainest version of what they mean.
In fact, four words probably do more for a leader's standing than any carefully crafted message: I made a mistake. Not "we encountered some headwinds," not "there were learnings from this experience," but the plain version.
The cost of comfort
When a conversation gets uncomfortable at work, it almost always feels easier to soften your message than to say exactly what you mean. You hedge, add qualifiers, cushion the point with extra reassurance, or leave the hardest part unsaid. Most of the time, you mean well. You don't want to discourage someone, damage the relationship, or create unnecessary conflict. The conversation becomes less uncomfortable for a moment, but the work often becomes harder afterward.
Amy Edmondson, Novartis Professor of Leadership and Management at Harvard Business School and author of The Fearless Organization, found that the fear of making a negative impression pushes people to stay silent exactly when clarity is most needed. According to her research, silence is one of the most consistent predictors of teams that miss problems early and never learn from them. The friction avoided in the meeting resurfaces later, at greater cost.
KimScott, former executive at Google and Apple and author of Radical Candor, calls this ruinous empathy: softening your message to protect someone's short-term feelings comes at the cost of the clarity they need. Her argument is simple and uncomfortable: clear, direct communication, even when it is hard, is an act of care.
The quiet power of saying what you mean
None of this is an argument for bland, colorless language.Vivid, precise writing does the opposite of jargon: it sharpens meaning instead of hiding it. Before reaching for a word, pause on two questions:
- What do I mean by it?
- What will my audience hear?
A surprising amount of corporate language wouldn't survive those two questions.
Leaders have more influence over language than they often realize. Whatever tone, vocabulary, and level of directness they model becomes the standard everyone else copies. Word choice is one of the quietest ways leaders shape culture.
This matters even more as we hand our language to AI. These tools can already learn to write in our voice. The question now is whether we've been deliberate enough about that voice in the first place to like what we see.

