need additional info...

There is a book on the subject by Edward de Bono, a free thinker who wrote some controversial stuff in the late 70s, early 80s - might be worth doing a wiki on him to get started. Most universities teach linear thinking, i.e. following a set of steps to reach a recognised result. Lateral thinking tries to disjoint the process and arrive at an answer that may not have any obvious connection to the original idea but may fit the bill better. Extremely useful to have the odd lateral thinker in an IT department, they're the ones who come up with very radical and cost-effective plans and occassionally change the way departments work.

If you think about it "Lateral Thinking," it makes sense because this is how people naturally think. I guess the real trick would be to find some way to structure this thinking so that it becomes somewhat productive.