Finding a road less traveled: Combining analysis and intuition to develop novel problem formulations

Abstract

Research Summary: Novel formulations of strategic problems are key to innovation and exploration. Conventional wisdom suggests that intuitive thinking, rather than rational-analytic thinking, facilitates novel problem formulations. This article proposes that intuitive thinking is insufficient and that novel formulations instead depend on sequencing rational-analytic and intuitive thinking across two phases of the problem formulation task. Two experiments using samples of strategists in organizations support the importance of analysis followed by intuition when developing novel problem formulations. This article advances the “both-and” approach to managerial cognition by investigating how harnessing intuition and analysis in combination may lead to a desirable outcome for a managerial task. This approach moves beyond the typical, “either-or” approach to cognition in past studies, which pit analysis against intuition in achieving desirable outcomes. Managerial Summary: Unique and potentially contrarian theories on problems—novel problem formulations—are key to innovation, exploration, and value creation. Past research indicates that strategists should rely on intuition and gut feeling rather than analysis to boldly develop novel problem formulations. I propose that intuition alone can lead to premature, obvious conclusions. This article instead claims that novel formulations depend on combining analysis and intuition in a specific sequence. Analysis helps identify hidden needs and pain points that allow strategists to think of diverse possibilities for underlying causes. Intuition helps strategists boldly utilize these ambiguous, unstructured symptoms based on subjective beliefs to develop novel problem formulations. Two experiments with real-world strategists support the arguments.