From Lateral Moves to Leadership: How Cross-Functional Experience is Shaping Tomorrow’s Leaders

Historically, career advancement was synonymous with vertical promotion: employees would rise through the ranks of their chosen field, accruing specialized knowledge and seniority. But as business ecosystems become more complex and interconnected, organizations are seeking leaders with a panoramic view—those who can synthesize insights from marketing, finance, operations, technology, and beyond. Lateral moves, or shifts into roles at a similar level in different departments, offer a powerful alternative. They enable individuals to develop a broader skill set, foster cross-departmental relationships, and break free from functional silos. According to the 2023 LinkedIn Workplace Learning Report, employees who pursue lateral moves are 2.5 times more likely to ascend to leadership positions than those who stick to a vertical trajectory. This trend is reinforced by the rise of internal job marketplaces and rotational programs at leading companies such as Google, Unilever, and IBM, all of which actively encourage employees to explore diverse roles. This shift is part of a broader trend toward internal mobility—a form of "quiet hiring"—where companies fill vacancies by promoting or reassigning existing staff rather than recruiting externally. For employees, this means that keeping an eye on internal job boards and upskilling opportunities can be a direct path to advancement without leaving their current employer.

Real-World Examples: Lateral Moves as Launchpads

The impact of lateral moves isn’t just theoretical; it’s borne out by the stories of professionals who have leveraged cross-functional experiences to accelerate their careers. Maya, a marketing manager at a global consumer goods firm, made a bold move after five years in brand management by joining the supply chain team—a decision that puzzled some of her peers. But this sideways step allowed her to gain a deep understanding of the company’s operational backbone. Three years later, Maya’s unique blend of marketing and supply chain expertise propelled her to Director of Product Innovation, overseeing both marketing strategy and logistical execution. “The lateral move was the best career decision I ever made,” Maya says. “It gave me credibility across teams and helped me think more strategically.” Josh, an IT specialist at a major financial institution, spent a decade honing his technical skills. When he transitioned into a compliance role, he brought a fresh perspective to regulatory challenges. His combined knowledge of tech and compliance led him, within four years, to head a major digital transformation initiative. “My lateral stint in compliance gave me a seat at the executive table,” Josh explains. “It set me apart from other tech leaders who hadn’t stepped outside the IT bubble.” These stories demonstrate how lateral moves can serve as catalysts for personal growth and professional distinction, enabling individuals to build credibility, empathy, and strategic vision.

The Organizational Perspective: Why Lateral Mobility Matters

Progressive organizations recognize that cross-functional experience is not only beneficial for employees but is also crucial for long-term business success. Leaders who have rotated through multiple functions are better equipped to break down barriers, champion innovation, and respond swiftly to disruptions. Programs like Unilever’s “U-Work” and Johnson & Johnson’s Leadership Development Programs exemplify this approach. Unilever allows employees to take on short-term assignments in various departments, while Johnson & Johnson rotates high-potential employees through marketing, sales, operations, and finance. The results are compelling: participants report higher engagement and retention, and the companies benefit from a deeper bench of versatile, future-ready leaders. Moreover, this internal mobility approach strengthens the talent pipeline, minimizes hiring costs, and supports organizational resilience in the face of change.

Challenges and Considerations

While the benefits of lateral moves are clear, they are not without challenges. Employees may face temporary loss of status, unfamiliar job responsibilities, or the need to prove themselves anew. Without visible support and recognition, lateral moves can be perceived as a risk rather than an opportunity. Organizations must therefore foster a culture that values non-linear career progression, offering mentorship, training, and transparent communication about long-term growth opportunities. Managers play a pivotal role in identifying candidates ready for cross-functional roles and in creating a psychologically safe environment where curiosity and adaptability are rewarded.