We have all been inspired by the relentless curiosity of toddlers repeatedly asking “why” in their quest to learn. Curiosity is no less valuable in business. Yet CEOs frequently bemoan the reluctance of their organizations to embrace new questions, perspectives, and paths.

But what exactly is curiosity? Why is it especially crucial to companies today? And what can leaders do to cultivate it?

What is curiosity in business?

We are more likely to take direct action when the goal is clear and the solution is known. When the precise solution is less clear, but the challenge pattern is familiar enough, we move to action by defining the process to solve, with milestones to benchmark progress.

While this direct approach to problem solving is efficient, it makes no sense for small children because their ability to tackle worldly challenges pivots on how well they can increase their knowledge of the world. The same logic applies to companies facing unprecedented business challenges in rapidly changing environments. Before they rush to execution, they need to deepen their understanding of novel situations.

Why is curiosity especially crucial today?

Shrinking the gap between the known and the knowable makes the most sense when we cannot easily draw on the experience of similar situations. The value of curiosity is therefore high in the following contexts:

• A young company that is unlikely to be competitive by pursuing the same paths as established ones.
• A company that is facing new challenges.
• When rapid change makes yesterday’s solutions less applicable to today.
• When new technologies provide very different possibilities and paths to the future.
• When intense competition quickly arbitrages away any advantage that an incumbent company might possess, necessitating the continuous exploration of new approaches.

One or more of these conditions apply to most businesses today. The rapid progress of generative AI, in particular, is forcing companies large and small to reconsider both the ends and means of strategy by investigating new approaches fueled by curiosity. Equally, the depletion of natural resources and the need to minimize environmental and social externalities—while continuing to create adequate financial returns—requires curiosity to drive new business-model discovery.