• 0 Shopping Cart $ 0.00 -->

thoughtLEADERS, LLC: Leadership Training for the Real World

Build your skills! Take our eLearning courses on TITAN!

World-class eLearning courses with videos, exercises, downloads, and a certificate of completion. Get started today!

Structured Thought: Problem Solving

Great questions. Here's another one: How could our competitors put us out of business? How could a new entrant put us out of business?

I like to think of a business model as the leadership team's current theory about how to deliver customer value and company profits. But it's just that — the current theory. The environment continues to change and so the business model must also evolve. Enjoyed your post. Thanks.

Kevin Ertell

Great post! These are some excellent questions. Another thought is to think three years into the future and image your business is down 50% and on the brink of bankruptcy. What happened? It's a way of using the "hindsight is 20/20" rule in advance. I always find this is a good exercise in understanding the need to change. I wrote a post a while back called "Defending the status quo kills companies" ( http://www.retailshakennotstirred.com/retail-shaken-not-stirred/2009/07/defending-the-status-quo-kills-companies.html ) to point out the urgent need to keep innovating. In my experience, without such scare tactics resistance to change is often too high to actually succeed in innovating.

Anonymous

What if the question you should ask is the result of good news? What would you do if your sales suddenly jumped by 2 or 3 fold?

Aidan Murphy

This is a great post. Organizations need to recognize that the only thing that is constant is change and market evolution. Trouble is change is the hardest think for most of them.

Leaders should not focus on anything that happened more than 5 minutes ago and must always look forward.

Teams need to be asked what have they done to improve the organization. They must recognize that one great idea can lead to revolutionary change.

Words like don't shouldn't, can't should be removed from all discussions. Don't talk about why something can not be done, talk about what can be done.

Anyone can talk about what the issues or problems are, challenge your team to come with solutions, two or three that can be developed.

The current market has forced change, look at the landscape, those who were unable or unwilling are gone.

Mike Figliuolo

All great comments and additional questions folks. I love the positive spin of "what do you do if your business just tripled?" Could create some very interesting perspectives!

Chris Fillebrown

I liked your comment 'Far too often, we wave our arms at innovation. We spew consultospeak like "think outside the box . . .' In October, 2009, I set up the Frame of Reference blog to focus on the innovation space and various solution strategies that exist in the marketplace. The goal is to expose problem solvers and thought leaders to techniques that will help them to be more effective. There are enough problems for everyone. As thought leaders we need to increase our awareness about real-world technologies that help us to be more effective at solving them. Ergo blog.

Leave a Reply

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Our Course Offerings

Leadership skills, communication skills.

Communications: Foundations Communications: Applications Principles of Chart Design Strategic Client Engagement Storytelling for Leaders Storytelling for Salespeople Compelling Executive Presence Advanced Facilitation Skills

Individual Skills

Conflict Resolution Everything is Negotiable thoughtLEADERSHIP: Innovation Building Personal Resilience Time Management Mastery

Coaching & Consulting

Cart

  • SUGGESTED TOPICS
  • The Magazine
  • Newsletters
  • Managing Yourself
  • Managing Teams
  • Work-life Balance
  • The Big Idea
  • Data & Visuals
  • Reading Lists
  • Case Selections
  • HBR Learning
  • Topic Feeds
  • Account Settings
  • Email Preferences

Share Podcast

HBR IdeaCast podcast series

Improve Your Critical Thinking at Work

Helen Lee Bouygues, founder of the Reboot Foundation, believes that a lack of critical thinking is responsible for many business failures. She says organizational leaders often...

  • Apple Podcasts
  • Google Podcasts

Helen Lee Bouygues, founder of the Reboot Foundation, believes that a lack of critical thinking is responsible for many business failures. She says organizational leaders often rely too heavily on expertise and then jump to conclusions. Instead, leaders should deliberately approach each problem and devote time thinking through possible solutions. The good news, she says, is that critical thinking skills can developed and practiced over time. Bouygues is the author of the HBR.org article “ 3 Simple Habits to Improve Your Critical Thinking .”

Download this podcast

CURT NICKISCH: Welcome to the HBR IdeaCast from Harvard Business Review. I’m Curt Nickisch.

You know the story. Maybe it’s even a nightmare of yours. One day, the company is flying high. No reason to change anything. Customers and contracts will always be there.

And then one day – the money stops flowing in, and the business is suddenly in real trouble.

Our guest today knows this all too well. She has been an interim CEO, CFO, or COO at more than one dozen companies. Sometimes they needed her because they were mismanaged. Some failed to stay in front of changing technologies. In a few cases, members of the senior team were simply negligent. But in her experience, all these organizational problems shared one root cause: A lack of critical thinking.

Our guest is Helen Lee Bouygues. She’s the founder of the Reboot Foundation. Based in Paris, the nonprofit helps parents, teachers and employers think more critically about their problems. She’s also the author of the HBR.org article “ 3 Simple Habits to Improve Your Critical Thinking .” Helen, thanks for being here.

HELEN LEE BOUYGUES: Thank you for having me Curt.

CURT NICKISCH: Helen, you worked in transitional periods for a bunch of big companies. And, you say that many people’s business problems really come down to simple errors in critical thinking. That just sounds a little surprising to me and I wanted to hear why you say that.

HELEN LEE BOUYGUES: Yeah, I think at first glance people believe that critical thinking is something that we do every day and it comes very natural. But in reality, critical thinking is not only extremely important for success in life, but it’s also something that needs to be learned and practiced.

Critical thinking skills are very much predictive of making positive financial decisions, even more so than raw intelligence, but people kind of forget what that actually means in terms of tools and practices that they need to exercise in order to make the right decisions, or at least the better decisions.

Based on my 20 years of different turnaround and transformation experience, I have noticed that very often when things go sideways or create problems and companies find themselves in a situation of a need for turnaround, it’s typically been because I would argue that the leadership perhaps lacked some elements of critical thinking.

CURT NICKISCH: Why do you think we lack critical thinking skills, or why do you think we think we’re better at it than we actually are?

HELEN LEE BOUYGUES: That’s a great question Curt and actually we did a survey at the Reboot Foundation about a year ago, where we asked people questions of everything from ranging from how often do they practice critical thinking to how important they think critical thinking is, and how often they teach their children critical thinking?

I think one of the reasons why it’s more difficult in today’s day and age is that we live in a world of incessant distraction and technology is often to blame as well. We live in a period when we have a question, we want that instant gratification getting the information, just typing the question on Google, having the answer quickly and so, we don’t actually have as much time to stop and think.

And part of the necessity of critical thinking is having that ability to take a step back and actually think about your own thinking. And yet, it’s actually becoming more and more critical because as businesses evolve and there’s more urgency to make decisions, that’s exactly when we need to do more critical thinking than perhaps we used to, because of evolving technology and rapidly changing competitive environments in business.

CURT NICKISCH: You say that getting better at critical thinking is something we can learn and cultivate?

HELEN LEE BOUYGUES: Yes. The opposite of critical thinking could be selective thinking. And naturally selective thinking is something that you can actually do relatively quickly because it’s just a reinforcement of your own opinion. People in business can get better at critical thinking if they just do three things. One, question assumptions. Two, reason through logic. And three, diversify thought.

CURT NICKISCH: How do you actually do that?

HELEN LEE BOUYGUES: So, the taking a break, and that doesn’t mean doing meditation or yoga, but actually taking the time. It could be going for a run, or a walk around the block. That alone creates that opportunity for an individual to take the time to stop and think. So, that’s one dimension I think that people need to put in their normal practice.

The second element that you wouldn’t necessarily think about in terms of an attribute necessary for critical thinking is management of emotions. So, the number of times that you can imagine, especially in a boardroom for a company that’s going through a difficulty, heated discussions, insults across the room. In that type of environment, it’s very difficult to engage in rational thinking.

As much emotions are important, when it comes to true important decisions, we need to put aside the feelings and emotions that go awry in a meeting setting. In addition to that, I think the other element of what we need to make sure that we conduct is making sure that we have other points of views.

CURT NICKISCH: When you talk about looking at things from opposing viewpoints, sometimes that’s helpful when you have somebody who plays that role, or when you have a diverse team that you can share ideas with and explore. I don’t know that all of us are as good of just thinking from other perspectives when we’re kind of just in our own thoughts.

HELEN LEE BOUYGUES: Yeah, but it’s again, that’s why I think I started off this conversation Curt, in saying that critical thinking is something that you actually need to practice and you need to learn. Because indeed, it’s natural and it’s very human to stay in your own personal bubble because it’s comfortable.

But you can actually do this from a small scale to a larger scale, and what I mean by that specifically is if you’re starting small, if you work in for example, in accounting. Go have lunch with people in marketing in your organization.

I have a good friend, Mathilde Thomas, she’s actually the founder of Caudalie which is a very successful line of skincare products made from grapes. Mathilde grew up spending her time in her family vineyards, so her family originally was in the wine business. And the idea of the skincare product came about because one day a friend of the family, this physician, came to visit the vineyard and he was looking at the vat of grape skins that were about to be discarded and he said, well that’s a pot of treasure, so why are you just discarding that away? And that’s effectively how the business of Caudalie actually began.

So, that’s a positive story where people who are not necessarily in the same field can get together and actually come up with innovation or here it wasn’t even intended to be an innovation. It just was an idea that sprung from two people from different walks of life getting together and coming up with the business idea. So, that’s a positive example in terms of diversity.

CURT NICKISCH: Where have you seen this failure in some of the companies that you worked with? Where have you seen the inability to diversify thought and opinions and host costly that can be?

HELEN LEE BOUYGUES: I think in terms of negative, I’ve seen a specific example for a pharmaceutical company where the founder brought in a CFO who actually had very little experience in accounting. He had experience in mergers and acquisitions, in elements of financing, but not pure accounting.

But his true qualification of becoming the CFO was the fact that he was a very, very good friend of the CEO’s and you see that example over and over again, including in boards. The number of times you see the board of a company being surrounded, the CEO being surrounded by his or her friends, which is why often I think from time to time, you have companies, publicly listed companies where sometimes the board may not see certain indications.

Be it the case of a Steinhoff or an Enron, which is an extreme case of fraud, but even in terms of general decisions, strategic decisions, that if you have a board composed of just a group of friends of the CEO’s, you don’t have diversity of thought in that type of environment.

CURT NICKISCH: So, we’ve talked some about questioning assumptions and the power of diversifying thought. But another point you make is that people need to get better about reasoning through logic. And I think this is going to surprise people too because logical is just such a household word. We think that we think logically, so why is logic a deficit and kind of a prerequisite for the critical thinking you think we need to see more of in management?

HELEN LEE BOUYGUES: So, one of the stories that I like to bring up is a specific company that I encountered a couple of years ago. It’s one of the world’s largest producers of aluminum tubes and they have clients ranging from L’Oréal to Proctor and Gamble, all over the world.

And the CEO of this company was blindsided by his own fervor and probably unreasonable optimism about the outlook for the revenue profile of this company. In reality, the company was in relatively dire financial straits, but again he was blinded with his hope that his clients would never leave because the switching costs of his clients would be too high, or that at least was his hypothesis.

And for some business leaders I think some optimism is obviously a good thing. There wouldn’t be Ubers or EBays if we didn’t have entrepreneurs who have that charisma and exuberance. But what I often find in companies is CEOss with something I call simply WTF. Now Curt, that’s not what you think that we commonly use in text messages, but it’s for me it’s “wishful thinking forever’.

And I think that blinded optimism can often mask the capability and the ability to reason through logic and actually re-question your approach and saying, “well, can my customers decide to change vendors? Is the competitive environment actually shifting? Are there low-cost companies that could actually take over my business even if that hurdle rate is high?”

So, it’s again coming back to being able to ask the right questions and looking at your business and saying, “is there a different way of doing things?” And that’s when you avoid the pitfalls of actually reasoning through logic.

And it comes back to the argument of having different views from your original views and your original sentiments. And obviously in order to do that, we need to really pay close attention to our own chain of logic.

CURT NICKISCH: Which I like by the way, wishful thinking forever. I’m going to read text messages that way now. Probably make them a little more optimistic. Yeah.

A lot of companies pay consultants to do this kind of critical thinking for them and they come in with tools and concept mapping, and all of the sorts of things that maybe they’re a little more deliberate about and also, removed from the emotion of working in the culture of a company. Do you see consultants as essentially paid critical thinkers?

HELEN LEE BOUYGUES: I think many consultants are good at critical thinking. I don’t believe that the industry of management consulting is a sector that is there to enforce critical thinking for companies. And let me explain why I believe that. A lot of, in a lot of situations CEOs seek validation and look for evidence that supports their preconceived notions. And consultants are often trained to agree with their client’s theories.

So, I would almost counter argue and say, for CEOs to effectively use consultants, they almost need to be very precise and be very upfront in their scope of work with the consultants, demand and ask that the consulting firm give a different point of view, or an opposing point of view than the original thesis of a leader.

Now that is sometimes hard to do. It goes back to the original part of our discussion. It’s less comfortable for leaders and in a lot of situations why CEO’s are hiring consultants are to justify and explain with more detail to their boards of why they’re doing certain strategic activities. So, that’s where we have to be careful about relying on consultants as quote, “a mechanism to do better critical thinking in business”.

CURT NICKISCH: Have you actually seen companies turn around when they change the way they approach problems and instituted critical thinking across the organization in a more deliberate way?

HELEN LEE BOUYGUES: Yes. I worked with a telecom company in Africa, not so long ago. And they had probably the lowest customer satisfaction rate across the board, amongst the different countries in Africa. And the CEO was somebody who was a very open minded, wanted to challenge – now you could argue Curt, they were on the low, they couldn’t get lower in terms of customer satisfaction, so they only had room to go up.

But if you put that aside, what he instituted was to have a sub group of his team to go visit another South African country that had very high customer satisfaction rates. So, it was, I would call creating an environment for its employees to have a bit of a diversity of thought, but also to actually be exposed to give the capacity for its employees to question the assumptions about what they were doing wrong.

So, very good CEOs not only are capable of trying to conduct metacognition for him or herself, meaning questioning his or her own way of thinking, but he’ll challenge his team and help them to challenge their own way of thinking by showing different examples of for example, success stories in the same type of work where in a case of this telecom company in Africa, where they could see and visit customer services centers in other African countries where they had high customer satisfaction rate.

So, it’s giving the exposure to its team to seek out diversity of thought, but also promoting that, and encouraging that its employees think differently than being focused on their own silos of work and being, trying to be efficient in their own capacity, in their existing dimension.

CURT NICKISCH: Yeah. So, if that was a good critical thinker, as a CEO, what do most leaders do in that situation? What does the “uncritical thinker” do?

HELEN LEE BOUYGUES: The uncritical thinker would be to try to gain more efficiency out of its existing employees and continue to do more of the same thing. But probably putting in more KPI’s. That’s a popular thing that leaders do. And try to put more pressure in the system so that companies are more productive. Rather than thinking out of the box and trying to say, should we be doing something differently than the way we’re doing it today?

CURT NICKISCH: And for individuals? Because whether or not you have a CEO who’s good at this, you can still affect your own team and you can still affect your own work with your own critical thinking. What should they do to get better at critical thinking?

HELEN LEE BOUYGUES: Be curious. Ask the questions. “ What if” questions are great. It’s important to constantly challenge yourself saying, what if I did something differently than the way I’m doing it now? What if I approached my client differently than the way I’m doing it now? What if I changed the processes? Would there be improvement? That’s the type of individual who can improve by actually questioning the assumptions of what he or she is doing on a daily basis.

And then the second element again, is trying to be very factual and be rigid about gathering facts and proof and accumulating data in order to truly justify why you’re doing what you’re doing. It’s going back to paying close attention to the chain of your own logic.

And then the third is expanding your horizon by interacting with people that are not in your existing silo. So, I go back to the example, very simple example, go have lunch, go have a drink with somebody that’s not in your same department, but go reach out to somebody who’s in a totally different building, or even different division within your group.

CURT NICKISCH: Helen, thanks for coming on the show and talking about thinking through how to be a better critical thinker.

HELEN LEE BOUYGUES: Thank you so much. It was a real pleasure to be on your show.

CURT NICKISCH: That’s Helen Lee Bouygues. She’s the founder of the Paris-based Reboot Foundation and the author of the HBR.org article “ 3 Simple Habits to Improve Your Critical Thinking .”

This episode was produced by Mary Dooe. We get technical help from Rob Eckhardt. Adam Buchholz is our audio product manager.

Thanks for listening to the HBR IdeaCast . I’m Curt Nickisch.

  • Subscribe On:

Latest in this series

This article is about decision making and problem solving.

  • Managing yourself
  • Strategy formulation

Partner Center

  • Master’s Students
  • Asian American
  • First Generation
  • International
  • Native Americans
  • Students With Disabilities
  • Faculty & Staff
  • Business and Finance
  • Consulting and Entrepreneurship
  • Data Science and Analytics
  • Engineering and Technology
  • Government, Politics and Law
  • Healthcare and Health Sciences
  • Humanities, Language and Social Sciences
  • Natural Resources, Sustainability, and Environmental Science
  • Non-profit, National Service, and Human Service
  • Pharma, BioTech, and Life Sciences
  • Career Exploration
  • Build Relationships
  • Resume / Cover Letter
  • Offers and Negotiation
  • Interview Prep
  • Professional Development Fund
  • Job / Internship
  • Online Presence

Critical Thinking

Critical Thinking

  • Share This: Share Critical Thinking on Facebook Share Critical Thinking on LinkedIn Share Critical Thinking on X

Instructor: Mike Figliuolo

Critical thinking is the ability to think reflectively and independently in order to make thoughtful decisions. By focusing on root-cause issues critical thinking helps you avoid future problems that can result from your actions. In this course, leadership trainer and expert Mike Figliuolo outlines a series of techniques to help you develop your critical thinking skills. He reveals how to define the problem you’re trying to solve and then provides a number of critical thinking tools such as blowing up the business, asking the 5 whys and the 7 so whats, exploring the 80/20 rule, and more. He also provides guidance on how to develop this skill across your whole team.

Why Critical Thinking Matters in Your Business

blowing up the business critical thinking

Table of Contents

Many professionals hope to pursue careers they’re passionate about so they can find joy and meaning in their work. Caring deeply about your work is vital for engagement and productivity, but balancing emotions with critical thinking is essential in the workplace. 

When employees engage in critical thinking, they use an independent, reflective thought process to evaluate issues and solve problems based on knowledge and objective evidence. 

Critical thinking skills can guide your organization toward success, but to truly maximize the problem-solving benefits of critical thinking, it’s crucial to teach this skill to your entire team. We’ll explore critical thinking skills and how to teach them in the workplace to help your business improve its decision-making and problem-solving. 

What is critical thinking?

Jen Lawrence, co-author of Engage the Fox: A Business Fable About Thinking Critically and Motivating Your Team , defines critical thinking as “the ability to solve problems effectively by systematically gathering information about an issue, generating further ideas involving a variety of perspectives, evaluating the information using logic, and making sure everyone involved is on board.”

This is a complex definition for a challenging concept. Though critical thinking might seem as straightforward as stepping back and using a formal thinking process instead of reacting instinctively to conflicts or problems, it is actually a much more challenging task.

Critical thinking’s ultimate goal is ensuring you have the best answer to a problem with maximum buy-in from all parties involved – an outcome that will ultimately save your business time, money and stress.

Why is critical thinking essential in the workplace?

A World Economic Forum report revealed that critical thinking is one of the most in-demand career skills employers seek when trying to attract and retain the best employees – and employers believe critical thinking skills will become even more necessary in the coming years. 

Critical thinking in the workplace guarantees objective and efficient problem-solving, ultimately reducing costly errors and ensuring that your organization’s resources are used wisely. Team members employing critical thinking can connect ideas, spot errors and inconsistencies, and make the best decisions most often. 

Employees with critical thinking are also more likely to accomplish the following:

  • Analyzing information
  • Thinking outside the box
  • Coming up with creative solutions to sudden problems
  • Devising thought-through, systematic plans
  • Requiring less supervision

Critical thinkers are sure about the reasoning behind their decisions, allowing them to communicate with employees clearly. This level of communication enhances employee engagement .

What are critical thinking skills?

Critical thinking is a soft skill that comprises multiple interpersonal and analytical abilities and attributes. Here are some essential critical thinking skills that can support workforce success.

  • Observation: Employees with critical thinking can easily sense and identify an existing problem – and even predict potential issues – based on their experience and sharp perception. They’re willing to embrace multiple points of view and look at the big picture. 
  • Analytical thinking: Analytical thinkers collect data from multiple sources, reject bias, and ask thoughtful questions. When approaching a problem, they gather and double-check facts, assess independent research, and sift through information to determine what’s accurate and what can help resolve the problem. 
  • Open-mindedness: Employees who demonstrate critical thinking are open-minded – not afraid to consider opinions and information that differ from their beliefs and assumptions. They listen to colleagues; they can let go of personal biases and recognize that a problem’s solution can come from unexpected sources. 
  • Problem-solving attitude: Critical thinkers possess a positive attitude toward problem-solving and look for optimal solutions to issues they’ve identified and analyzed. They are usually proactive and willing to offer suggestions based on all the information they receive. [Related article: How to Develop a Positive Attitude in the Workplace ]
  • Communication: When managers make a decision, they must share it with the rest of the team and other stakeholders. Critical thinkers demonstrate excellent communication skills and can provide supporting arguments and evidence that substantiate the decision to ensure the entire team is on the same page. 

What are the benefits of critical thinking in the workplace?

Many workplaces operate at a frantic tempo that reinforces hasty thinking and rushed business decisions, resulting in costly mistakes and blunders. When employees are trained in critical thinking, they learn to slow the pace and gather crucial information before making decisions. 

Along with reducing costly errors, critical thinking in the workplace brings the following benefits: 

  • Critical thinking improves communication. When employees think more clearly and aren’t swayed by emotion, they communicate better. “If you can think more clearly and better articulate your positions, you can better engage in discussions and make a much more meaningful contribution in your job,” said David Welton, managing partner at Grove Critical Thinking.
  • Critical thinking boosts emotional intelligence. It might seem counterintuitive to associate analytical rationality with emotional intelligence . However, team members who possess critical thinking skills are less prone to rash, emotion-driven decisions. Instead, they take time to analyze the situation and make the most informed decision while being mindful and respectful of the emotional and ethical implications. 
  • Critical thinking encourages creativity. Critical thinkers are open to new ideas and perspectives and accumulate a significant amount of information when facing decisions. Because of this, they’re more likely to come up with creative solutions . They are also curious and don’t shy away from asking open-ended questions. 
  • Critical thinking saves time and money. By encouraging critical thinking in the workplace, you minimize the need for supervision, catch potential problems early, promote independence and initiative, and free managers to focus on other duties. All this helps your company save valuable time and resources. 

Critical thinking skills are essential for dealing with difficult customers because they help your team make informed decisions while managing stressful situations.

How do you teach critical thinking in the workplace?

Experts agree that critical thinking is a teachable skill. Both Lawrence and Welton recommend exploring critical thinking training programs and methods to improve your workplace’s critical thinking proficiency. Here’s a breakdown of how to teach critical thinking in the workplace: 

  • Identify problem areas. Executives and managers should assess workplace areas most lacking in critical thinking. If mistakes are consistently made, determine whether the issue is a lack of critical thinking or an inherent issue with a team or process. After identifying areas that lack critical thinking, research the type of training best suited to your organization. 
  • Start small. Employees newly embracing critical thinking might have trouble tackling large issues immediately. Instead, present them with smaller challenges. “Start practicing critical thinking as a skill with smaller problems as examples, and then work your way up to larger problems,” Lawrence said.
  • Act preemptively. Teaching and implementing critical thinking training and methodology takes time and patience. Lawrence emphasized that critical thinking skills are best acquired during a time of calm. It might feel urgent to seek critical thinking during a crisis, but critical thinking is a challenging skill to learn amid panic and stress. Critical thinking training is best done preemptively so that when a crisis hits, employees will be prepared and critical thinking will come naturally.
  • Allow sufficient time. From a managerial perspective, giving employees extra time on projects or problems might feel stressful in the middle of deadlines and executive pressures. But if you want those working for you to engage in critical thinking processes, it’s imperative to give them ample time. Allowing employees sufficient time to work through their critical thinking process can save the company time and money in the long run.

How do you identify successful critical thinking?

Successful critical thinking happens during a crisis, not after.

Lawrence provided an example involving restaurants and waitstaff: If a customer has a bad experience at a restaurant, a server using critical thinking skills will be more likely to figure out a solution to save the interaction, such as offering a free appetizer or discount. “This can save the hard-earned customer relationship you spent a lot of marketing dollars to create,” Lawrence said. This concept is applicable across many business and organizational structures. 

You should also be aware of signs of a lack of critical thinking. Lawrence pointed out that companies that change strategy rapidly, moving from one thing to the next, are likely not engaging in critical thinking. This is also the case at companies that seem to have good ideas but have trouble executing them.

As with many issues in business, company leadership determines how the rest of the organization acts. If leaders have excellent ideas but don’t follow critical thinking processes, their team will not buy into those ideas, and the company will suffer. This is why critical thinking skills often accompany positive communication skills.

“Critical thinking doesn’t just help you arrive at the best answer, but at a solution most people embrace,” Lawrence said. Modeling critical thinking at the top will help the skill trickle down to the rest of the organization, no matter your company’s type or size.

To get your employees thinking critically, conduct employee surveys with well-designed questions to help them identify issues and solutions.

Critical thinking is the key to your business success

When critical thinking is actively implemented in an organization, mistakes are minimized, and operations run more seamlessly. 

With training, time and patience, critical thinking can become a second-nature skill for employees at all levels of experience and seniority. The money, time and conflict you’ll save in the long run are worth the extra effort of implementing critical thinking in your workplace.

Rebecka Green contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

thumbnail

Building Better Businesses

Insights on business strategy and culture, right to your inbox. Part of the business.com network.

Ideas and insights from Harvard Business Publishing Corporate Learning

Learning and development professionals walking and talking

To Improve Critical Thinking, Don’t Fall into the Urgency Trap

blowing up the business critical thinking

Too often at work, people rely on expertise and past experiences to jump to a conclusion. Yet research consistently shows that when we rush decisions, we often regret them—even if they end up being correct. [i]

Why we hasten decision making is quite clear. We’re inundated with incessant distractions that compete for our attention, and, at the same time, we’re facing profound pressure to go faster and drive our businesses forward, even when the path ahead is unclear.

In the aftermath of information overwhelm, evolving technology, and rapidly changing business environments, people often unconsciously fall into a pernicious paradox called the “urgency trap.”

The Urgency Trap

The urgency trap, which can be defined as the habitual, unbridled, and counterproductive tendencies to rush through decision making when under the pressure of too many demands, is a paradox because it limits the very thing that could help us be more innovative, efficient, and effective: Our critical thinking.

The ability to analyze and effectively break down an issue to make a decision or solve a problem in novel ways is sorely lacking in today’s workforce, with most employers reporting that their employees’ critical thinking skills are average at best. [ii]

The good news? Critical thinking is a teachable skill, and one that any person can learn to make time for when making decisions. To improve and devote time for critical thinking at work, consider the following best practices.

1. Question assumptions and biases

Consider this common scenario: A team is discussing a decision that they must make quickly. The team’s options—and the arguments for and against them—have been assembled, but no clear evidence supports a particular course of action. Under pressure to move fast, the team relies on their expertise and past experiences to rapidly provide a solution. Yet, in the months following their decision, the issues that prompted the original discussion persist, and the team wonders why.

The issue here may be that the team failed to question their own assumptions and biases. Indeed, when we view situations solely based on our own personal experiences and beliefs, we limit our options and provide solutions that are often short-sighted or superficial. [iii] To improve critical thinking skills, we must step back and ask ourselves,

  • “Am I seeking out information that confirms my pre-conceived idea?”
  • “Am I perceiving a past experience as more predictable than it actually was?”
  • “Am I overemphasizing information that comes to mind quickly, instead of calculating other probabilities?”

2. Reason through logic

When presented with an argument, it is important to analyze it logically in order to determine whether or not it is valid. This means looking at the evidence that is being used to support the argument and determining whether or not it actually does support the conclusion that is being drawn.

Additionally, consider the source of the information. Is it credible? Trustworthy? Finally, be aware of common logical fallacies people tend to use when trying to speed up decision making, such as false dilemma (erroneously limiting available options) and hasty generalizations (making a claim based on a few examples rather than substantial proof).

3. Listen actively and openly

When we’re in a rush to make a decision, we often focus more on how we want to respond rather than what the speaker is saying. Active listening, on the other hand, is a critical thinking skill that involves paying close attention to what someone else is saying with the intent to learn, and then asking questions to clarify and deepen understanding.

When engaging in active listening, it’s important to avoid interrupting and instead allow the other person to fully express their thoughts. Additionally, resist the urge to judge or criticize what the other person is saying. Rather, focus on truly understanding their perspective. This may mean practicing open-mindedness by considering new ideas, even if they challenge existing beliefs. By keeping an open mind, this ensures that all sides of an issue are considered before coming to a conclusion.

4. Ask better questions

In an article for Harvard Business Review, John Coleman, author of the HBR Guide to Crafting Your Purpose , writes, “At the heart of critical thinking is the ability to formulate deep, different, and effective questions.” [iv]

To ask better questions, first consider the audience for the question (who is hearing the question and who might respond?) and the purpose (what is the goal of asking this question?). Then, approach queries with rigor and curiosity by asking questions that:

  • Are open-ended yet short and direct (e.g., “How might you help me think about this differently?”)
  • Challenge a group’s conventional thinking (e.g., “What if we tried a new approach?”)
  • Help others reconsider their first principles or hypotheses (e.g., “As we look at the data, how might we reconsider our initial proposed solution?”)
  • Encourage further discussion and analysis (e.g., “How can we deepen our understanding of this issue?”)
  • Thoughtfully follow up on the solution (e.g., “How do we feel about the progress so far?”)

5. Create space for deliberation

The recommendations outlined thus far are behaviors and capabilities people can use in the moment, but sometimes, the best solutions are formulated after consideration. In fact, research shows that a deliberate process often leads to better conclusions. [v] And sleep has even been proven to help the brain assimilate a problem and see it more clearly. [vi]

When issues are complex, it’s important to find ways to resist unnecessary urgency. Start by mapping out a process that allows several days or longer to sit with a problem. Then, create space in the day to formulate in quiet reflection, whether that’s replacing your first thirty minutes in the morning with thinking instead of checking email, or going on a walk midday, or simply journaling for a few moments before bed.

Critical Thinking Cannot Be Overlooked

In the face of rapidly-evolving business environments, the ability to make smart decisions quickly is one of a company’s greatest assets—but to move fast, people must first slow down to reason through pressing issues, ask thoughtful questions, and evaluate a topic from multiple angles.

To learn more about how organizations can enhance their critical thinking and decision-making skills, download the full paper: Who Is Really Making the Decisions in Your Organization — and How?

[i] Grant Halvorson, Heidi, “Quick Decisions Create Regret, Even When They Are Good Decisions,” Fast Company. https://www.fastcompany.com/1758386/quick-decisions-create-regret-even-when-they-are-good-decisions .

[ii] Plummer, Matt, “A Short Guide to Building Your Team’s Critical Thinking Skills,” Harvard Business Review, October 2019. https://hbr.org/2019/10/a-short-guide-to-building-your-teams-critical-thinking-skills .

[iii] Benjamin Enke, Uri Gneezy, Brian Hall, David Martin, Vadim Nelidov, Theo Offerman, and Jeroen van de Ve, “Cognitive Biases: Mistakes or Missing Stakes?” Harvard Business School, 2021. https://www.hbs.edu/ris/Publication%20Files/21-102_1ed838f2-8ef3-4eec-b543-d00eb1efbe10.pdf

[iv] Coleman, John, “Critical Thinking Is About Asking Better Questions,” Harvard Business Review, April 2022. https://hbr.org/2022/04/critical-thinking-is-about-asking-better-questions .

[v] Markovitz, Daniel, “How to Avoid Rushing to Solutions When Problem-Solving,” Harvard Business Review, November 2020. https://hbr.org/2020/11/how-to-avoid-rushing-to-solutions-when-problem-solving .

[vi] Miller, Jared, “Does ‘Sleeping On It’ Really Work?” WebMD. https://www.webmd.com/sleep-disorders/features/does-sleeping-on-it-really-work .

Speech bubbles

Let’s talk

Change isn’t easy, but we can help. Together we’ll create informed and inspired leaders ready to shape the future of your business.

© 2024 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

  • Privacy Policy
  • Copyright Information
  • Terms of Use
  • About Harvard Business Publishing
  • Higher Education
  • Harvard Business Review
  • Harvard Business School

LinkedIn

We use cookies to understand how you use our site and to improve your experience. By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Cookie and Privacy Settings

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Get expert advice delivered straight to your inbox.

Everything You Need to Know About Critical Thinking Skills for Business Leaders

9 Min Read | Oct 3, 2023

Ramsey

We all have moments of bad decision-making. (Like that time you hired your best friend’s cousin’s neighbor without interviewing them. Wrong move.) But consistently making decisions by the seat of your pants is no way to live your life—or build your business. What you can build your company on is the momentum that comes from critical thinking, aka making smart decisions and solving tough problems like it’s your job. Because if you’re a leader, it is.

Now, don’t get tripped up on the word critical . We’re not talking about overthinking every little thing and never really deciding on anything. And we’re also not talking about being critical or judgmental of your team. Both suck the life out teams and businesses. Critical thinking is really just about asking great questions, analyzing possible solutions, and taking action.

Let’s explore what critical thinking is, why it matters to you as a business leader, and how to apply how to apply critical-thinking skills examples to your work.           

What Is Critical Thinking?

One scholarly explanation of critical thinking goes something like: a system of thought incorporated in scientific, mathematical, historical, anthropological, moral, philosophical and economic thinking. Yeah, that definition’s a 0 out of 10 on the helpfulness scale. Critical thinking is more than knowing about something. It’s actively exploring facts and making discoveries. It’s getting to the bottom of problems by asking smart questions so you can make a good judgment based on facts—not feelings.

You already use critical thinking in your everyday decisions without realizing it. As a leader, you probably have 50 “great” ideas before you get to work in the morning. But do you act on all of them? Of course not. Because after you take a closer look at your priorities and available time and resources, you realize some of those ideas aren’t worth pursuing, at least right now. That’s critical thought.

Ready to Level Up Your Business?

Find out your Stage of Business with our free assessment and get additional resources to help you level up by focusing on the right things at the right time.

When you use critical thinking, you don’t just take things at face value or go with your initial gut reaction. You weigh, measure and challenge information carefully, with the goal to improve what and how you think. One quick note though. Don’t mistake critical thinking for memorizing facts and figures. That’s what you do when you’re prepping for your fifth-grade multiplication test. It’s not how you make new discoveries.

If you want to solve problems and find better ways of doing things like the great leader you’re meant to be , you will rely on a combination of data, facts, research, wise counsel, and assumptions from your knowledge and experience.

Pro tip: Being wishy washy can paralyze your team, your business and your mission. That’s what’s called indecisive leadership, and that’s an oxymoron. Don’t do that. Once you think through your information and options, make up your mind.

Why Is Critical Thinking Important to Leaders?

As if paralyzing your team isn’t bad enough, indecision also costs your business time and money. You give life permission to make decisions for you when you don’t move. Yuk! But when you think and move your way through obstacles, you hold the reins and can overcome challenges when others just give up.

Computer

Ready to be challenged, inspired and motivated by the world’s top business and thought leaders? Join us online for the EntreLeadership Summit livestream—you can even invite your team to watch with you.

Are you losing steam with your current ad strategy? Critical thinking can lead you to new advertising ideas and marketing streams—and create even more business traffic. Stressed out by supply chain issues? Critical thinking can help you find new vendors and ways of doing business. When you think boldly and keep control of the situation, you impose your will (and good sense) on the world around you.

Here’s one more example of why critical thinking is important: Say you notice a dip in sales one month. You could blow it off as a fluke and charge ahead blindly. Or you could panic, treat it as the beginning of the end, and pressure your sales team to turn the ship before you’re forced to close your doors. Which one is right? Probably neither. But you won’t know how to respond until you carefully look at your business trends, analyze market conditions, and talk with some other smart, experienced leaders.

Your team and your business are just as good as your reasoning and decision-making skills.

Critical thinking helps you:

  • Keep emotions and chaos in check as you approach problems with facts, not feelings
  • Understand the importance and relevance of ideas
  • Know when to challenge information and when to stop overthinking
  • See how ideas are linked and call out inconsistencies and mistakes
  • Appreciate different perspectives
  • Consider others’ needs and show respect

Ask yourself how much you prioritize running your business with clarity, fairness, accuracy, and relevance. Your answer will give you a good picture of how much you value critical thinking.

Related article: What is Transformational Leadership?

Critical thinking has plenty of enemies though. Beware of these traits and behaviors that can lead to bad thinking and bad business:

  • Self-interest
  • Blind acceptance of what’s “normal”

Have you ever heard the phrase, “ready, fire, aim”? Probably not—but that’s what it looks like to act before you get a clear picture of the situation. Things run smoother the less you shoot from the hip and the more you carefully consider your decisions.

Examples of Critical Thinking Skills in Business

Here are some examples leaders in different lines of work who use critical thinking to solve everyday business problems:

  • A funeral home director who considers a grieving family’s budget and wishes and guides them to the best choices
  • A home health care manager who analyzes their cases and matches team members with clients based on their needs and schedule preferences
  • A home contractor who weighs out which subcontractors are the right fit for the job
  • A customer service leader who uses feedback forms to decide on training needs for their team
  • A landscaper who evaluates the risk versus the potential revenue growth of adding team members

The Critical Thinking Process

We’ve looked at why and when to put some extra thought into your business decisions, but let’s be real. Not every decision requires deep-level thinking. The amount of time and energy you spend deciding should be based on the size of the decision’s impact on your business.

If it’s your job to choose whether your company’s Christmas card envelope is white or red, for the love of holiday cheer, just decide. But if you’re about to make a major purchase or new hire, you’ve got some big investments on the line. Pause to think over the details before you advance.

Related article : Product Launch: 10 Questions to Ask Before You Launch a New Product

Also, as you prepare to solve a tricky problem, ask yourself these questions:

  • What’s the real issue?
  • Why does this problem or challenge exist?
  • What information do I need to gather to understand more?
  • How should I keep my notes organized?

Let’s say, for example, that your business issue is consistently unhappy customers. On the surface, it looks like your team members serve customers too slowly. Since both team members and customers are involved, you need to get perspective from both sides to learn why the problem exists. So, you gather details from them on when and where the issue shows up and how they think it is or isn’t being handled. As for how to keep track of the information you learn, you could simply take notes on your phone or computer to review later. Or, you might need to put them in a shared document so your key leaders can see them as you work on a solution together.

After doing some high-level digging, you may find that your team members really are slow, but why ? That’s the next thing you need to discover. Are they poorly trained? Working in a role they’re not good at? Using faulty equipment?

Following these steps of deeper-level critical thinking will help you uncover root issues—so you can fix any problems:

  • Observe: Look at the issue from different angles and ask questions about it.
  • Analyze: Test how true your information is.
  • Reason: Come up with your top theories for why there’s a problem, then list possible conclusions and solutions. (We’ve already established that you’re an idea machine. That’s great!  Keep those possible solutions flowing.)
  • Communicate: Talk with people who are smarter and further ahead in their career than you for deeper insight. That doesn’t mean to just ask anyone with an opinion—find someone with experience.
  • Solve: Decide and act.

Now for an important reminder: Thinking critically means you’re always discovering, changing and improving. Afterall, the one thing thriving businesses count on is change . That means you might solve a customer concern one way today but find better ways to solve it in the future. The same is true in any situation where you use critical thinking steps. The more you want to grow, the more you challenge your ideas and ways of doing things to get the positive change!

How to Think More Critically

We get it. You’re reading this because you’re serious about taking new ground and winning in business. You’re serious about going the extra mile to raise your critical thinking game even more. Here are four practical ways to build stronger critical thinking skills:

  • Take a course or play video and board games that challenge your brain.
  • Volunteer to solve problems at work and home for practice.
  • Talk to others who are really good at thinking critically.
  • Expand your job knowledge and skills so you can see problems more clearly.

Related article :  Mastermind Groups: What Are They, and How Can They Help You Grow Your Business?

What’s Next: Decision Time

Great leaders are people of action. They’re neither knee-jerk and emotional or passive and indecisive. They get the facts, think them through, then make the call. Of course, your personality style will influence whether you naturally make decisions quickly or need more time—and that’s okay. But, when it’s go time, leaders lead. Those who don’t end up like the squirrel in the middle of the road looking back and forth, then moving in circles or not at all. We all know what happens to that squirrel.

One way to stretch your critical thinking skills is to learn from today’s top voices in business and leadership through The EntreLeadership Podcast . You’ll hear practical decision-making insights that help you lead with confidence, solve big problems and grow your business.

Did you find this article helpful? Share it!

Ramsey Solutions

About the author

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.

What Are the 4 DISC Personality Types?

People are your greatest resource and biggest challenge in business. Teach your team to focus more on we and less on me by understanding DISC personality types.

Ramsey

EntreLeadership: What Are the 5 Stages of Business?

Running a business is a lot like running a marathon. You need a clear path, plan and perseverance to get ahead. Learn which stage of business you’re on so you can build a lasting legacy.

Business Analyst Learnings

General BA Matters

Business Analyst Blog with tips, techniques and resources for every BA.

The Business Analyst's Guide To Encouraging Critical Thinking

It-is-the-mark-of-an.jpg

Imagine you’re in a meeting. You present a business analysis plan and ask your team members to share their thoughts. Now, imagine two situations. In the first one, everyone says “that’s great, boss!” They nod and approve of everything you say. You ask if they would add or adjust anything in the plan. They say it’s perfect. In the second situation, everyone starts thinking . They come up with different ideas and express them because they want to contribute towards a better outcome. That’s called critical thinking, and it’s what you want from everyone in your team.

The environments in many organizations don’t always support critical thinking. If you notice that team members or the stakeholders relevant to your project are not expressing any ideas, you shouldn’t blame them. They have to be encouraged, and the manager (or the BA, who works in teams) has a crucial role to play in that process.

Here's a list of tips for encouraging the critical thinking process.

Make Sure They Are Not Too Busy

If your team members or business stakeholders are constantly pressured by tasks and deadlines, they won’t have time for critical thinking. When someone has to work too hard and still doesn’t have enough time to meet expectations, they are looking for the most comfortable routes to get things done. They are not willing to put in extra “thinking” effort.

To motivate team members or stakeholders to think from a critical point of view, take some burden off their shoulders. Do they have enough breaks? Do they have enough time to complete their tasks? How many projects are running at the same time? Do they have space that allows creativity? If not, you should consider bringing in additional stakeholders or requesting for more support, so that tasks can be distributed more evenly.

Don’t Settle In Your Comfort Zone

When a person in a position of authority is comfortable with current ways of doing things, team members are less likely to bother making suggestions. Think: have you ever accepted a suggestion ? If you’re so confident in your decisions, why would you want to encourage critical thinking within the team or among stakeholders?

The first thing you should do is step outside your comfort zone. With that, you’ll motivate others to do the same. Ask them to come up with new ideas for the project you’re working on. Tell them you’ll make decisions together. When someone suggests a new method or a different solution to a problem, do not reject their plan outright. Consider their point of view!  

Ask The Right Questions

“Okay people, let’s do some critical thinking here.” That’s not the right trigger. You can’t just get others to think critically by saying so. Give them flexible guidelines and lead the discussion in a focused direction.

When you’re trying to solve a problem , for example, ask these questions:

  • What happened?
  • When did we see the first signs of a problem?
  • Why did this happen?
  • How did we allow it to happen?
  • How can we solve the problem?

With these prompts, you’ll encourage team members, stakeholders and yourself to see the problem from different angles. You’ll gain a new perspective that sets the path for successful critical thinking.

Support Logical Thinking Processes

Critical thinking is different from creative thinking. When you’re asking others to suggest solutions, you’re not just looking for ideas. You’re looking for ideas that work . Sound reasoning has to be the foundation of this process.

Of course, you should allow everyone to express ideas, even if you don’t see the logic in them. Maybe they see it from another perspective and it will make sense after they explain it to you. However, you should examine the sound reasoning of each idea before you accept it. Examine all factual claims and premises. Take all factors into consideration and do your best to predict the outcome.

Thorough analysis of each idea is part of the critical thinking process. It’s important not to intimidate others with this analysis. You shouldn’t discourage them from contributing their ideas. Show support by emphasizing the good things about each idea, too.

Teach Them How!

Did you know you could teach others how to think critically? Provide training on how to analyze and judge thoughts according to specific standards of logical reasoning. Teach them how to evaluate the similarities and differences between ideas, seek information and evidence, and predict the likely outcome.

Research shows that explicit instructions on critical thinking helps people develop these skills. When you combine such training with all other tips listed above, you’ll contribute to a working environment that supports and encourages the processes of critical thinking.  

Why should you even bother to encourage discussion and debate? Because that’s how you get team members to realize their true potential. That’s how you find more ways to make your organization better. Plus, everyone’s work gets more interesting when they are allowed to express and evaluate ideas.

About the author:

Micheal Gilmore is an entrepreneur and career advisor at Resumes Planet . He specializes in building high-performance teams and delivering great products in the least time. Micheal is also a passionate career advisor and facilitator. His life is fully dedicated to the people. You can catch Micheal on Twitter .

Business Analyst Learnings

This business analyst blog contains practical insights into business analysis, software testing and business process management. I will be sharing business analyst tips, CBAP Certification tips, lessons learnt and insights into all the things I've learnt during my BA career.

USEFUL BA PRODUCTS

Requirements Discovery List How to Start Your BA Career BA Template Toolkit BA Email Toolkit

Google+

Subscribe to Blog by Email

Sign up with your email address to receive news and updates.

We respect your privacy.

  • Requirements Elicitation
  • Business Process Improvement
  • Software Testing
  • Stakeholder Management
  • CBAP Certification
  • Critical Thinking in Business Analysis
  • Missing requirements
  • Soft Systems Methodology
  • Free Business Analyst Training Online
  • Requirements Elicitation Technique
  • Use Case Diagram
  • Root Cause Analysis
  • How to design questionnaires
  • Role and Permissions Matrix
  • State transition diagram
  • Pareto analysis and decision-making
  • Problem tracking technique
  • Document Analysis

  Business Analyst Glossary  | Privacy Policy & Disclosures  | Advertisements  | Submitting A Post | BAL Services

Australian Business Number (ABN): 27 735 714 328

Business Advisor

Critical Thinking Strategies for Business Leaders

Critical thinking is a powerful skill that’s applicable in both daily life and running a business.

However, managers and executives are in charge of large budgets and diverse teams. Irresponsible business decisions and ignoring risk management can harm a group of people and their families, in addition to other areas of business (partners and vendors).

What Is Critical Thinking?

Thinking critically defines the process of analyzing problems from scratch, relying on a combination of your background, the context of your organization, the distribution of your team, available resources, the global market, and any data you can tap into to reach a reasonable conclusion.

A broadly accepted definition is derived from Jen Lawrence’s work on Engage the Fox: A Business Fable About Thinking Critically and Motivating Your Team :

[Critical thinking is] the ability to solve problems effectively by systematically gathering information about an issue, generating further ideas involving a variety of perspectives, evaluating the information using logic, and making sure everyone involved in on board. Jen Lawrence

Simply put, traditional thinking is a “quick and dirty” approach to decision-making that doesn’t account for the complete context to analyze a problem.

Busy executives need to resort to proven approaches and established processes most of the time. But without critical thinking strategies, important initiatives can fail miserably and jeopardize the entire business.

So what flavors exist between both extremes of the thinking curve?

6 Stages of Critical Thinking Development

A theory essay led by Linda Elder and Richard Paul defines six stages critical thinking morphs into:

  • The Unreflective Thinker
  • The Challenged Thinker
  • The Beginning Thinker
  • The Practicing Thinker
  • The Advanced Thinker
  • The Master Thinker

While critical thinking exercises start as early as K-12 schools (or even private kindergartens), the concept gets imprinted as an informal medium for solving day-to-day problems .

And the difference between unaware thinkers and proficient ones determines whether you’re running your life on autopilot or excel at balancing experience with context and different variables introduced for every problem.

Ivory Research experts state that over time, students can lose their aptitude as they rely more on former experiences and known patterns instead of questioning paradigms and challenging themselves toward progress.

In business development, the landscape evolves quickly.

  • New hires alter the company culture
  • New departments obtain and share responsibilities throughout the organization
  • New product divisions share costs and expenses with other, revenue-generating activities
  • Promotions change the dynamics of ownership and hierarchy across the team
  • Competitors pivot and acquire market share, leading to internal changes in services and products to match the market dynamics and customer expectations

The main responsibility of managers and executives is quickly identifying larger initiatives dependent on numerous factors and allocating the time to derive a decision without omitting essential details.

Required Skills For Critical Thinking

SkillsYouNeed defines 9 skills we need for critical thinking :

  • Observation
  • Interpretation
  • Explanation
  • Problem solving
  • Decision making

Similar to risk management, business leaders have to follow these processes below:

  • Gather requirements from different mediums and data sources
  • Critically assess the issue at hand
  • Consider all arguments and stakeholders involved in the process
  • List down assumptions and opinions
  • Evaluate every opinion critically
  • Perform a simple SWOT analysis to identify weak spots or flaws
  • Account for all implications or unwanted side effects upon making a decision
  • Provide a well-thought argument supporting the preferred solution

Leaving your temperament at the door is crucial to perform a successful critical thinking analysis. Prejudice can impact the evaluation process. It’s best to allocate some time to objectively go through the process whenever possible.

A Simple Framework for Critical Thinking Leaders

Wabisabi crafted a helpful cheatsheet you can use during your first critical thinking exercises:

Before the analysis process, walk through a comprehensive list of questions to gather enough information yourself. For instance:

  • Who benefits from this change?
  • Who is most directly affected by the outcome?
  • What strengths/weaknesses would impact the result?
  • What would be a counter-argument against the change?
  • Where can we find similar applications to what we try to adopt?
  • Where will the new idea take us?
  • When would this cause a pressing problem?
  • When can we confirm the experiment has succeeded?
  • Why is this a pressing business problem worth solving?
  • Why have we relied on our existing process to date?
  • How will we approach that safely?
  • How does the new change benefit the product/team/organization?

This critical thinking framework is applicable in all forms of decision-making – especially when the stakes are high.

When to Apply Critical Thinking in Business

Once you adopt an effective framework, switching between a quick burst of simple decisions and applying critical thinking will become a healthy habit.

Businesses of every size must prioritize the development of these skills among their employees to enable them to make informed decisions, solve complex problems, and communicate effectively. forbes.com

However, there are plenty of cases when you need to default to a more robust framework to avoid an expensive risk afterward:

1. Launching a New Product

Business planning and designing a product MVP undergoes an extensive process. If you rely on leap of faith or your intuition before investing 6-12 months in validation and development and six figures (or more), this is effectively the definition of gamble.

Break the process down into multiple steps and critically assess the market dynamics, common objections, legal obstacles, user experience, and your target market.

2. Promoting a Staff Member

Handing a manager/lead role seems natural at first for your loyal employees. But it’s worth asking a number of questions before proceeding further:

  • Are they actually looking forward to a management role?
  • Are they coachable?
  • Is the business ready to lose a key talent in a role only to promote to a lead one?
  • Is this career path the most suitable one?
  • Does the new role pose limitations that would harm your employee?
  • How qualified is your team member to take on future challenges a year or two ahead?

3. Moving to a New Office Space

Switching office spaces is usually dictated by negotiation challenges (increased costs), environmental changes (construction work or other renters who distract your staff) or outgrowing the space.

However, moving to a new space can pose unexpected challenges for you and your team members – both short-term and long-term.

We spent 10 months before our last transition to a new office. Some of the key considerations that we had to evaluate were:

  • Is there a nearby subway station?
  • What about parking?
  • What are the available coffee shops and restaurants in the area?
  • What does traffic look like during peak hours?
  • Is the location safe enough in the evening?
  • Can the new space accommodate a 100% growth in the next 3 years?
  • Would the transport system negatively affect staff members who didn’t have problems prior to that?
  • How much freedom to change and restructure are we allowed now?

After a long evaluation process, we found a safe neighborhood near a large shopping center with food nearby, a subway station, plenty of parking spots, located just above a small supermarket. The building manager preliminary reserved another floor and we’re slowly expanding as capacity maxes out over time.

4. Opening a New International Branch

If you’re based in the US and you find an untapped market in Spain, Norway, Nigeria or Pakistan, you’re probably thinking about a new office space that follows the exact same workflow.

It takes an extensive set of critical thinking sessions to arrive at the right conclusion.

The language barrier may be an obstacle in Spain, France or Germany, along with the legal framework of the European Union.

Norway, however, is not a part of the EU. Different rules apply there, along with taxing. Due to its social policy, you may look into new ways to treat parents differently from what you’re used to in the States.

Finding key executive roles in Nigeria or Pakistan could be challenging. While lots of multinational corporations have offices there, the talent pool is smaller and a niche business may take a while to get up to speed (unless your strategic managers relocate there for the first six months).

Again, most of this is based on generalizations that may or may not apply to different businesses. Targeting non-US markets can be a successful venture. But you need to spend some time with local consulting firms to study the market dynamics and the local standards.

Other Leadership Applications of Critical Thinking

Aside from traditional business cases like bootstrapping products, acquiring companies, opening new branches, or deploying technology, business leaders can maximize the benefits of critical thinking in other management scenarios.

  • Presentation strategies . Gauging your public speaking skills through the lenses of critical thinking can tap into new caveats your staff or vendors would omit otherwise. Start with the outcome and reverse-engineer the process instead. Build your outline accordingly and stress on the main aspects of your pitch, making sure you hit home with the last slide.
  • Workplace conflicts . Even if you notice tension at the workplace , getting to the root of the problem isn’t always obvious. Diversity issues could get in the way. Different temperaments in the same room may not fit in all too well. Standards arguments around the lighting or the room temperature can escalate quickly. Dive deep and you’ll manage the conflict before it’s too late.
  • Text communication . Reading between the lines is as subjective as it gets. But an ambiguous text from a client could escalate a problem early on. Text etiquette isn’t widely distributed – and even subtle details like ending your message with a period can completely change the tone.
  • Communicating live . If your staff gets intimidated every time you get in the room, there may be a misalignment between your leadership style and the culture you need to instill. For instance, my team notified me that asking anyone “got a minute to chat?” was the worst thing they could hear, always imagining they are about to be fired. Once I heard that over drinks after hours, I completely changed the narrative and have always provided since then sufficient context if I need five minutes to sync.
  • A bonus system . If you plan to start a bonus system for overachievers, money is often the first conclusion leaders reach. But is this the best perk your team expects? Probably shorter business hours or extra days off would make a difference. Or a paid trip for your staff member and their significant other. Maybe even recognition in a company announcement or sponsoring a charity they care about. Discuss this with HR and you may be surprised at the end.
  • Giving feedback . Receiving and giving feedback are among the most challenging management skills a leader should nurture over the years. Taking the subject likely can escalate in a number of ways. Apply critical thinking both before giving and when receiving feedback. As a giver, don’t push the wrong buttons. As a receiver, read between the lines and always respect and praise an honest opinion.
  • Imprinting an idea . Convincing a team to work towards the same goal requires a careful approach. Team members bounce different ideas back and forth and hurting feelings is easier than not. Build your pitch around core goals and values everyone would agree to, and design your value map and your hiring process around this paradigm.

Critical thinking can be a powerful shift for you personally and as a business leader in your organisation.

Get on the problem-solving loop – an iterative process vital for modern critical thinking business leaders. Start with identifying the right problem, brainstorming ideas and picking the best solution. Proceed with testing it and evaluating the results to underpin effective decision-making and foster continuous improvement within your organisation.

Once you get used to the model and apply the established frameworks for success, you will develop a healthier workplace environment , a strong and loyal team, and a sustainable business model with risk management in mind.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

blowing up the business critical thinking

Vector Impact Logo

How to Develop Critical Thinking Skills in Business That Make You Smarter

blowing up the business critical thinking

Table of Contents

W e’ve heard about the importance of critical thinking skills in school, but it’s not always a common topic in the business world. The truth is, graduation day doesn’t mean critical thinking gets filed away in your past with standardized testing, homework, and essays. Critical thinking in business is an important skill for success.

This level of thinking goes much deeper than our normal thought process. It relies on a broad wealth of information, including the accumulation of new evidence in addition to our own reservoir of knowledge, experiences, memories, reflections, and reasonings.

Critical thinking in business helps us constantly evaluate and reevaluate the way we work so we can seek out more efficient and profitable solutions. A 2020 survey found that critical thinking and analysis is the #1 most important skill group that will be in high demand by 2025.

Graph of survey results showing the most important business skills that will be in demand by 2025

  • Critical thinking is a deliberate and systematic approach for processing information to make educated, well-informed decisions.
  • We don’t need to be critical thinkers 100% of the time. But when it comes to important decisions, especially in business, critical thinking skills are necessary.
  • We can improve our critical thinking skills by questioning assumptions, seeking out alternative viewpoints, being aware of our biases, reversing our problem-solving approach, and evaluating evidence. 

What is critical thinking?

Critical thinking is the process of intentionally and systematically processing information to develop a well-informed understanding and make educated decisions.

It’s the opposite of snap judgments and regular day-to-day decisions. Most of our thinking happens automatically based on a gut feeling and limited amount of information available to us at a given moment.

Critical thinking requires a more in-depth approach that relies on facts, evidence, experience, and observations instead of emotions, assumptions, and biases.

5 ways to improve your critical thinking in business

Nobody relies on critical thinking 100% of the time. It takes considerable time and effort—you don’t need to spend that much energy when deciding what to make for dinner or which shirt to wear. That constant energy expenditure would leave us drained.

Instead, critical thinking is a tool that you should reserve for specific circumstances. There’s a time and a place for both critical thinking and automatic decision-making.

For example, you can be on autopilot when it comes to mundane tasks like filing paperwork, but for important decisions that have an impact on your bottom line—investments, employees, and the future of your business—you can’t afford to simply “go with your gut.”

Here are five ways you can improve your critical thinking in business.

1. Question basic assumptions

Assumptions are a natural part of our thinking process, but they’re detrimental to critical thinking.

Critical thinking in business requires objectivity, which means removing emotions and baseless assumptions from the equation.

When a company’s response to a new idea is to say, “But we’ve always done it this way,” they’re not thinking critically. Learn to recognize such assumptions and be critical of them.

2. Examine alternate points of view

It’s perfectly natural to want to seek out information that aligns with our own opinions and desires. We want to be right.

But part of critical thinking involves researching opposing views to understand the full picture from every angle. Talk to those who oppose you, and make sure you’re actively listening when they present their case. Seek out peer-reviewed research.

Even if you still don’t agree with the alternative points of view, they may illuminate new solutions or challenges to consider when making a decision.

3. Be aware of your biases and mental processes

The human brain is an incredible machine, but it’s certainly not perfect. In addition to natural biases, like prejudices and stereotypes, our brains are sometimes subject to heuristics . These mental shortcuts can be used to circumvent a long, detailed thought process.

Shortcuts might be sufficient for immediate decisions with short-term goals, but not for critical thinking. The best way to manage them is to be aware of your biases and mental processes. Simple awareness isn’t enough—you will also need to understand how they influence your decision-making process. From there, you can make a conscious effort to adapt and overcome.

Some of the most common biases to overcome are:

  • Confirmation Bias: Acknowledge that you won’t always be right.
  • Action Bias: Don’t act on impulse. Take a moment to think through the consequences first.
  • Association Bias: Did an action cause a desired outcome to occur, or did that outcome happen regardless of the action?

4. Reverse your approach

If you’re still feeling stuck when applying your critical thinking skills to a problem, try looking from a different perspective by reversing your approach. 

For example, maybe you’re mulling over what investments to make in your business, and you can’t decide if they’ll help you reach a particular goal. Try turning your thought process around. Focus on the end goal instead, and then work backwards. What needs to happen in order to reach that goal?

Reversing your approach can illuminate any flaws in your thought process and help you reach a logical solution.

5. Evaluate existing evidence

Evidence is a key factor in critical thinking. Our decision-making process should involve seeking out information and evidence to fill gaps in our knowledge.

This doesn’t mean you have to conduct your own studies. Researchers with access to more resources have already laid that groundwork for you. 

But to accurately incorporate this evidence into your critical-thinking process, the burden falls on you to know the answers to these questions:

  • Where did this evidence come from? Is the source credible?
  • How was the information gathered?
  • What were the parameters and sample size?
  • How does this evidence fit into the problem I’m trying to solve?

In today’s digital world, you can find skewed data to support any point of view, even the most illogical conspiracy theories.

This is why critical thinking must go beyond simply finding evidence. It requires mindful evaluation of the facts and a commitment to seek out relevant, credible information, even if it disproves your point and changes your perspective.

9 traits of critical thinking in business

Critical thinking skills result in better business decisions

Developing a critical thinking mindset helps you focus on progress instead of perfection . Nobody’s perfect. And being a critical thinker doesn’t mean you’ll make the right decision every time. 

But it does mean that you are making educated, rational decisions that have a much higher chance of success.

Are you a critical thinker? Do you want to improve your critical thinking skills? Join our team and grow professionally!

web analytics

Privacy Policy

The service you are accessing is either under high load or has detected unusual activity from your network location.

To protect this service from abuse please complete the challenge below to continue.

What code is in the image? submit

Your unique support ID for this request is: 96619576143534428.

If you see this challenge frequently or believe you are seeing it in error please record this ID and contact the Deakin University IT Service Desk . Additional information is available from the IT Knowledge Base .

blowing up the business critical thinking

10 Best Critical Thinking Tips from Business Experts

  • POSTED ON June 19, 2023
  • by Marcjean Yutuc

[Level Up Your Life]  With a growing library of 3,000+ on-demand video courses, you can level up at your own pace.

Click here to get your All Access Pass today

In business, there are always pain points. Whether it’s a lack of customers, high employee turnover, or a competitive marketplace, there’s always something that can be improved. One way to overcome these challenges is to learn business skills , especially critical thinking skills.

Critical thinking is the ability to think clearly and rationally about a problem or situation. It involves the ability to analyze information, identify assumptions, and draw conclusions. When you can think critically, you’re better equipped to make sound decisions and solve problems.

Here are two significant statistics that emphasize the importance of critical thinking skills in 2023 and beyond:

  • The World Economic Forum predicts that analytical thinking, creativity, and flexibility will be highly valued skills in business by 2025. However, companies currently invest little in training for these skills.
  • According to a survey conducted by Harvard Business Review, which involved 63,924 managers and 14,167 recent graduates, it was found that 60% of managers believe that critical thinking is the most lacking soft skill among new graduates. 

To help you navigate this path, we reached out to a diverse group of business experts who generously shared their personal insights and advice. In this roundup article, we present you with the ten best critical thinking tips straight from the minds of these accomplished individuals, providing you with a wealth of wisdom to sharpen your own thinking prowess.

photo art of a critical thinker

Critical Thinking Tips from Business Experts

Implement real-life data analysis.

Jaden Oh, Chief of Marketing at TRAFFV , a reputable digital agency in Asia, shares his expertise in implementing real-life data analysis. With a proven track record of working with esteemed partners like Intel and being featured in publications such as Hubspot, Fiverr, and Yahoo, Jaden brings a wealth of experience and credibility to this critical thinking tip.

"As a business owner, critical thinking requires the ability to analyze real-world data to identify trends and make informed decisions... By engaging in this type of critical thinking, I was able to identify customer needs and develop better products and services, ultimately leading to improving customer satisfaction and increased business growth." Jaden Oh, Chief of Marketing at TRAFFV

In his interview with Skill Success, Jaden gave the example of how he created a “Data Clean Room” when he launched his own business to analyze customer feedback and identify potential areas of improvement. This method allowed him to make decisions based on evidence and data rather than on assumptions.

Here are some tips on how to improve your ability to implement real-life data analysis:

  • Gather data from a variety of sources. This could include customer surveys, social media data, sales data, and website analytics.
  • Clean and organize your data. This will make it easier to analyze and identify trends.
  • Use data visualization tools. These tools can help you to see patterns and trends in your data.
  • Ask questions. Don’t be afraid to ask questions about your data. The more you understand your data, the better you will be able to make informed decisions.

Combine Analytical and Creative Problem-Solving Skills

Bailey Moran, the COO of Austin TX Realty , a highly successful real estate group in Austin, Texas, shares insights on the importance of combining analytical and creative problem-solving skills in critical thinking. 

She emphasizes the significance of this approach by recounting her own experience in navigating a complex real estate market.

"When I was faced with the challenge of navigating a complex real estate market, I was able to think critically and develop a strategy that enabled me to successfully close the deal. I started by researching the current market conditions and analyzing the data to identify key trends. With this information, I was able to craft a plan that took into consideration the needs of both the buyer and seller. By thinking critically and leveraging my knowledge of the industry, I was able to close the deal quickly and efficiently..." Bailey Moran, COO of Austin TX Realty

Analytical problem-solving skills involve breaking down a problem into its component parts and identifying the root cause. Creative problem-solving skills involve generating new ideas and solutions to problems. By combining these two skills, business owners can be more effective at solving problems and making decisions.

Here are some tips on how to improve your ability to combine analytical and creative problem-solving skills:

  • Get feedback from others. Ask others for their feedback on your ideas and solutions. This can help you to identify any potential problems with your thinking.
  • Be open to new ideas. Don’t be afraid to consider new ideas and perspectives when solving problems.
  • Be persistent. Solving problems can be challenging. Don’t give up if you don’t see results immediately. Keep working at it, and eventually, you will reach your goal.

Sign up to Skill Success AAP

Take a Step Back and Look at the Big Picture

Taking a step back and looking at the big picture means detaching from the day-to-day operations of your business. It involves considering the long-term goals and objectives. It involves thinking about the overall direction of your business and how you can achieve your goals.

Billy Parker, Director of Gift Delivery , a reputable e-commerce website based in the UK, offers valuable insights on the importance of this strategy.

"It is easy to get caught up in the day-to-day operations of running a business, but it is important to take a step back and look at the bigger picture. This means looking at the long-term goals and objectives of the business and how they can be achieved. It also means looking at the current market conditions and trends and how they can be used to the advantage of the business." Billy Parker, Director of Gift Delivery

Drawing from his own experience at Gift Delivery, Billy exemplifies the benefits of this approach. By stepping back and analyzing the market conditions, he identified an increasing demand for gift guides and product recommendations. Billy’s strategic focus led to creating a wide range of gift guides and product recommendations. This allowed Gift Delivery to maintain a competitive edge and experience an increase in sales.

Here are some tips on how to take a step back and look at the big picture:

  • Set aside time for strategic planning. Once a month, take some time to step back and think about the long-term goals and objectives of your business.
  • Review your market research. Make sure you are up-to-date on the latest trends in your industry and the needs of your customers.
  • Talk to your team. Get input from your employees about their thoughts on the future of your business.
  • Get an outside perspective. Talk to a mentor, consultant, or other business owner who can provide you with unbiased feedback.

Approach Every Situation with an Open Mind

Studies have shown that open-minded people are more likely to be successful in their careers. This is because they are more likely to take risks, be creative, and solve problems effectively.

Susan Anderson, the founder of The Worthy Goods , shares valuable insights on the importance of critical thinking for business owners, especially the need to approach every situation with an open mind.

"From my experience, I have found that the most effective way to think critically is to approach every situation with an open mind. This allows for the consideration of different perspectives and angles that can lead to creative solutions." Susan Anderson, founder of The Worthy Goods

During the launch of The Worthy Goods, Susan encountered the challenge of creating a sustainable and innovative business model. To think critically, she took a step back and examined the problem from various angles. She considered the current industry trends, customer needs, and the resources available to her. By adopting an open-minded approach, Susan was able to identify potential solutions and develop a successful business model.

Here are some tips on how to improve your ability to approach every situation with an open mind:

  • Be willing to listen to different perspectives. When you are faced with a problem, don’t just listen to your own perspective. Take the time to listen to the perspectives of others, including your employees, customers, and mentors.
  • Be willing to change your mind. If you are presented with new information that contradicts your current beliefs, be willing to change your mind. Being open-minded means being willing to consider new information and ideas, even if they challenge your current beliefs.
  • Be willing to take risks. Sometimes, the best way to solve a problem is to take a risk. If you are too afraid to take risks, you may never find the best solution to your problem.

Don’t Rely Heavily on Technology

Technology can be a great way to scale businesses, but it can also lead to losing human connection. Businesses that focus too much on technology may lose sight of what is important: their customers.

Mayank Batavia is the Head of Marketing and Partnerships at QuickEmailVerification , a leading email validation company. Mayank has a wealth of experience in marketing and has seen firsthand how technology can be used to scale businesses. However, he also believes businesses should not rely too heavily on technology.

"Consider reaching out to customers. If you write 10 emails in an hour, your competitor can use a platform to shoot 1,000 hour in 1/10 the time and beat you. So you have got to find something that technology cannot scale. In our case, it's been scheduling 1:1 calls with customers. No bots, no automation - just humans speaking to customers. Speaking to customers, understanding their pain points, and making sure we resolve their challenges have proved to be an almost unbeatable competitive advantage for us. Of course, we are far from perfect in that, but we know we are onto something really valuable." Mayank Batavia, Marketing Head of QuickEmailVerification

Here are some tips on how to improve your ability to not rely too heavily on technology:

  • Get to know your customers. The best way to differentiate your business from your competitors is to get to know your customers and understand their needs. This can be done by scheduling 1:1 calls with customers, conducting surveys, or simply listening to feedback.
  • Be creative. There are many ways to differentiate your business from competitors without using technology. For example, you could offer personalized customer service, create unique marketing campaigns, or partner with other businesses.
  • Be human. In a world that is increasingly becoming automated, it is important for businesses to remember that they are dealing with human beings. Make sure that your business is personal, approachable, and easy to do business with.

Sign up for Skill Success Newsletter

Always Explore the Why, the How, and the What-If

Exploring the why, how, and what-if is a critical thinking skill that helps people understand the motivations, processes, and outcomes of a situation.

Leo Ye, the CEO and Co-founder of Cubo , emphasizes the significance of questioning everything and exploring the why, the how, and the what-if in critical thinking.

"The key is to question everything: always explore the why, the how, and the what-if... However, it's also essential to balance intuition with data-driven decisions. Remember, critical thinking is not just about challenging ideas but about creating actionable strategies from those challenges. Be inquisitive, be analytical, but also be ready to put thoughts into action.” Leo Ye, CEO and Co-founder of Cubo

Leo exemplifies this by describing how they developed the mentorship program at Cubo. Instead of simply modeling it on existing schemes, Leo and his team critically analyzed what startups truly needed from mentors and how they could uniquely fulfill those needs. They questioned conventional wisdom and explored new approaches, which led them to design a more personalized and effective mentorship program.

Here are some tips on how to improve your ability to explore the why, the how, and the what-if:

  • Be curious. Ask questions and seek out new information. The more you know, the better equipped you will be to think critically.
  • Be open-minded. Be willing to consider different perspectives and ideas. The best solutions are often the ones that no one has thought of before.
  • Be analytical. Break down problems into smaller, more manageable pieces. This will make it easier to identify potential solutions.
  • Be creative. Don’t be afraid to think outside the box. The best solutions are often the ones that are the most innovative.

Constant Evaluation

Jonathan Brown, the founder of MeetJB , worked with some of the biggest names in the industry, including Boston Scientific, Intuitive Surgical, and Agora Financial. He believes that one key strategy for critical thinking is constant evaluation.

"Critical thinking in business is not merely about identifying problems, it's about digging deeper, peeling off layers of data, and understanding the underlying patterns, trends, and unseen risks. So, my advice to any business owner is this: don't just think; think critically. Question, analyze, and above all, never stop learning because the dynamism of business demands an equally dynamic mind." Jonathan Brown, founder of MeetJB

Brown cites his work with Boston Scientific. When consulting for the company, Brown instituted a well-organized evaluation process. This in-depth, critical analysis paved the way for resilient strategies that were not just reactive but proactive and innovative.

Here are some tips on how to do constant evaluation in business:

  • Set clear goals and objectives. What do you want to achieve with your business? Once you know your goals, you can start to evaluate your progress toward them.
  • Collect data and metrics. What data can you collect to measure your progress? This could include sales figures, customer satisfaction surveys, or website traffic data.
  • Analyze the data. Once you have collected the data, you need to analyze it to identify trends and patterns. This will help you to understand what is working well and what areas need improvement.
  • Make adjustments. Based on your analysis, you need to make adjustments to your business strategy. This could involve changing your marketing strategy, product offerings, or customer service practices.

Allow Sufficient Time

According to a study published in the journal Psychological Science, people who are rushed are more likely to make mistakes.

Daniel Florido, Director of PixelStorm , a renowned digital marketing agency, believes that it is important to allow employees sufficient time to complete tasks. He believes that this is especially important when it comes to critical thinking tasks .

"Giving workers additional time on tasks or issues may seem burdensome from a managing standpoint when deadlines and executive demands are present. However, if you want employees who work for you to participate in critical thinking processes, you must allow them plenty of time. Long-term time and financial savings for the business may be achieved by giving employees enough time to complete their critical thinking process. Daniel Florido, Director of PixelStorm

There are a few things that you can do to improve your ability to allow sufficient time:

  • Set realistic deadlines. When you are setting deadlines, be realistic about how much time it will take you to complete the task. Don’t underestimate the time it will take you to do the work or to deal with unexpected problems.
  • Break down large tasks into smaller ones. This will make the task seem less daunting and will help you to stay on track.
  • Use a time management tool. There are a number of time management tools available that can help you to track your time and stay on track.

Skill Success All Access Pass

Don’t Fear Questioning

Questioning allows us to dig deeper, challenge assumptions, and gain a better understanding of the subject at hand. Ravi Parikh, the Founder & CEO of RoverPass , understands that questioning is not a sign of ignorance but rather a reflection of curiosity and a desire to improve.

"If you do not know or understand something, it is better to ask questions rather than accept everything at face value. Questioning things does not mean that you are ignorant. On the other hand, it shows your inquisitiveness to improve. So a successful business expert should never fear questioning anything." Ravi Parikh, Founder & CEO of RoverPass

Here are some additional tips that may help you:

  • Do your research. Before you ask a question, do some research to see if you can find the answer on your own. This will show the person you are asking that you are serious about getting an answer.
  • Be specific. Don’t ask vague questions. Instead, ask specific questions that will get you the information you need.
  • Be patient. Sometimes it takes time for someone to answer a question. Don’t get frustrated if the person you are asking doesn’t have an answer right away.
  • Ask follow-up questions. If you don’t understand the answer to a question, don’t be afraid to ask follow-up questions. This will help you to get a better understanding of the answer.

Embrace Lifelong Learning

Arnaud Kor, Assistant CMO for LeanLaw , believes in the value of lifelong learning. Lifelong learning allows individuals to expand their horizons, challenge existing assumptions, and develop critical thinking skills.

"By prioritizing studying, you can broaden your horizons and expose yourself to novel concepts. Learning new things consistently is the best way to grow, adjust to changing circumstances, and sharpen your analytical abilities." Arnaud Kor, Assistant CMO for LeanLaw

Kor also emphasizes the importance of research and acquiring knowledge as a foundation for critical thinking. By being open-minded and willing to discard rigid views, individuals can approach challenges with a fresh perspective.

Here are some tips for embracing lifelong learning:

  • Set aside time for learning. Just like any other skill, learning takes time and effort. Make sure to set aside some time each day or week for learning.
  • Find a mentor or learning partner. Having someone to guide you and hold you accountable can be a great way to stay on track with your learning goals.
  • Join a learning community. There are many online and offline communities where you can connect with other learners and share ideas.
  • Don’t be afraid to make mistakes. Everyone makes mistakes when they are learning. The important thing is to learn from your mistakes and to keep moving forward.

We at Skill Success strongly support the idea of embracing lifelong learning. In today’s rapidly evolving world, where new technologies, industries, and challenges constantly emerge, being a lifelong learner is crucial.

photo of a team of critical thinkers

More Tips: How to Improve Critical Thinking Skills at Work

After we have heard valuable tips from experts, let us delve into more actionable strategies to improve critical thinking skills at work. These additional tips will further empower you and your team to excel in the realm of critical thinking, enabling better decision-making, innovative problem-solving, and effective collaboration in the workplace.

  • Encourage diverse perspectives: Foster a team environment where team members feel comfortable expressing their opinions and challenging ideas. Encouraging diverse perspectives leads to more robust discussions, innovative solutions, and better-informed business decisions.
  • Develop information evaluation skills: Equip team members with the skills to evaluate the credibility and reliability of the information. Teach them how to assess the sources, verify facts, and consider different biases or perspectives before making decisions based on the information they gather.
  • Practice active listening: Encourage team members to actively listen to others during discussions, meetings, and brainstorming sessions. Active listening involves focusing on the speaker, asking clarifying questions, and considering different points of view. This fosters a culture of respect and collaboration.
  • Foster a culture of curiosity: Nurture an environment where curiosity is valued and rewarded. Encourage team members to ask questions, explore new ideas, and challenge assumptions. Curiosity fuels critical thinking and stimulates innovative problem-solving.
  • Break down complex problems: Teach team members to break down complex problems into manageable components. This helps avoid being overwhelmed by the amount of information and allows for a more systematic and thoughtful thought process.
  • Develop logical reasoning skills: Guide team members in developing logical reasoning skills. Teach them to identify premises, evaluate arguments, and draw sound conclusions. Logical reasoning enables critical thinkers to make well-supported business decisions.
  • Encourage reflection and self-assessment: Encourage team members to reflect on their own thought processes, biases, and decision-making tendencies. Regular self-assessment promotes self-awareness and helps identify areas for improvement in critical thinking skills.
  • Promote continuous learning: Emphasize the importance of ongoing learning and skill development. Encourage team members to seek out opportunities for professional development, attend training programs, and engage in relevant courses or workshops to enhance their critical thinking abilities.
  • Foster a growth mindset: Cultivate a growth mindset within the team, where challenges and setbacks are seen as opportunities for growth and learning. This mindset encourages resilience, adaptability, and a willingness to embrace new ideas and perspectives.
  • Encourage data-driven decision-making: Promote the use of data and evidence in decision-making processes. Encourage team members to gather and analyze relevant data, consider different data sources, and use data to support their arguments and business decisions.

By incorporating these additional critical thinking tips into your business practices, you can foster a team of strong critical thinkers, make better-informed business decisions, and navigate complex challenges with clarity and effectiveness.

Frequently Asked Questions About Critical Thinking for Business

1. what is critical thinking.

Critical thinking is the ability to think clearly and rationally about what to do or what to believe. It includes the ability to engage in reflective and independent thinking.

2. Why is critical thinking important in business?

Critical thinking is important in business because it allows you to make better decisions, solve problems more effectively, and communicate more effectively. When you are able to think critically, you are able to:

  • Identify the root cause of problems
  • Generate creative solutions
  • Consider all sides of an issue
  • Weigh the pros and cons of different options
  • Communicate your ideas clearly and persuasively

3. What are some common mistakes people make when thinking critically?

There are many common mistakes people make when thinking critically. Here are a few:

  • Jumping to conclusions: Don’t assume you know the answer before you have all the information.
  • Falling for stereotypes: Don’t judge people based on their race, gender, age, or other factors.
  • Emotional reasoning: Don’t let your emotions cloud your judgment.
  • Confirmation bias: Only looking for information that confirms your existing beliefs.
  • Neglecting the obvious: Sometimes the simplest explanation is the correct one.

4. What are some resources for learning more about critical thinking?

There are many resources available for learning more about critical thinking. Here are a few:

  • Books: There are many books on critical thinking available. Some popular titles include Brain Power: Learn to Improve Your Thinking Skills by Karl Albrecht and Critical Thinking: A Beginner’s Guide to Critical Thinking, Better Decision Making, and Problem Solving by Jennifer Wilson
  • Articles: There are many articles on critical thinking available online. Some popular websites include Critical Thinking Is About Asking Better Questions , a Harvard Business Review and Critical Thinking by Stanford Encyclopedia of Philosophy.
  • Online courses: There are many online courses available that teach critical thinking skills. Some popular courses include Learn Critical Thinking With Emotional Intelligence , Use Emotional Intelligence To Tame Your Brain And Cope During Crises , and Critical Thinking And Decision Making In Fortune 500 Firms by Skill Success.
  • Workshops and seminars: There are many workshops and seminars available that teach critical thinking skills. These can be a great way to learn about critical thinking in a hands-on setting.

5. What are the benefits of learning critical thinking through courses?

There are many benefits to learning critical thinking through courses. Courses can provide you with a structured learning environment, access to expert instruction, and opportunities to practice your skills. Additionally, courses can be a great way to network with other professionals who are interested in critical thinking.

Key Takeaways

Critical thinking skills hold immense importance in today’s fast-paced and complex business landscape. They enable individuals to analyze information critically, make sound decisions, and solve problems effectively.

It’s worth noting that critical thinking is a skill that can be learned and honed over time. It requires continuous practice, exposure to diverse perspectives, and a commitment to lifelong learning. By actively engaging in critical thinking exercises and applying the tips shared by the experts, you can enhance your analytical thinking, problem-solving, and decision-making capabilities.

To further support your journey in developing critical thinking skills, I encourage you to consider subscribing to Skill Success All Access Pass . We provide access to a wide range of resources, courses, and tools that can further enhance your critical thinking abilities.

Remember, the path to becoming a proficient critical thinker starts with a willingness to question, analyze, and evaluate information critically.

Subscribe to Skill Success All Access Pass today!

Ready to fully dive into your learning? Join All Access Pass and unlock our entire course library for only $15/month.

Click here to learn more

Marcjean Yutuc

Marcjean Yutuc

Browse all categories, related posts, navigating the levels of programming languages, ux design principles: insights, strategies, and best practices, a comprehensive guide to c-sharp and sql programming languages, the importance of experience design, the highest paid programming language of 2024.

Be the first to get the newest articles!

Get free articles weekly and put your skills on turbo mode. Subscribe with your email today.

Look out for useful articles and resources delivered straight to your inbox.

Looking for a solution to discover, change, or advance your career?

Get all access pass for only $15/month and unlock 3,000+ online video courses today..

blowing up the business critical thinking

SKILLSUCCESS.com 2024 All rights reserved

Online courses.

Software Tutorials

Personal Development

Career Development

Become an Instructor

Support FAQs

Create An Account

All Access Pass

Terms of Use

Privacy Policy

SKILLSUCCESS.com 2022 All rights reserved

Subscribe For Success!

Get fresh content every week to upgrade your skills today!

Join our newsletter and get your first course free!

Congratulations! You get one free course of your choice. Please check your email now for the redemption code.

blowing up the business critical thinking

logo-advantexe-150.png

  • Financial Acumen
  • Marketing Acumen
  • New Manager Workshop
  • Change Management Skills
  • Virtual Business Acumen (Foundations)
  • Strategic Business Selling Skills
  • High Potential Leadership
  • Onboarding New Hires
  • Business Acumen eLearning Courses
  • Learning Journeys
  • Virtual Learning Journeys
  • Customized Learning
  • Learning Modalities
  • Training Reinforcement Tools
  • Measurement
  • Why Business Simulation?
  • Simulation Catalog
  • SaaS Simulation
  • Zodiak Pro - Digital Game Board Simulation
  • Foundations of Business Acumen Simulation
  • Pricing Simulation
  • Pharmaceutical Marketing Simulation
  • Leading Psychological Safety Simulation
  • Coaching Simulation
  • Delivering Effective Presentations
  • Fundamentals of Business Change
  • Blanchard SLII Simulation
  • Resolving Business Conflict
  • Leading Strategic Execution Simulation
  • New Manager Leadership Simulation
  • Level Five Sales Coaching Simulation
  • Sales Prospecting
  • Industry Business Simulations
  • Pharmaceutical Business Simulation Suite
  • Assessment Simulations
  • Virtual Role Play Simulations
  • Custom Simulations
  • AdvantEdge White papers
  • Advantexe Podcast
  • Virtual Learning Journey Resources
  • The Power of Practice - Business Simulations
  • What is Business Acumen
  • Why Business Acumen Matters
  • Why We Are Different
  • Industries Served
  • Advantexe Team
  • Careers @Advantexe
  • Advantexe Events

blog-banner-2022

The Advantexe Advisor Blog - providing a deep and applicable understanding of the system of business.

10 basic rules of critical business thinking and problem solving.

By Robert Brodo | Jul 5, 2017 8:00:39 AM |

Share on Facebook

And just like that it’s July, 2017 and the 3 rd Quarter is now underway. 

business-thinking-2.jpg

Based on my experiences over the past 25+ years working in the corporate training and develop market we have to look no further than a landmark survey by The Economist just a couple of years ago.  The reason I like this survey so much is that it takes an unbiased perspective of the US market from experts outside of the US market.  Chocked full of valuable data and insights, there is one question which I think is appropriate to visit this week and that is:

“At your company, what workplace skills are considered most important for employees to have when they join?”

The #1 answer with 72% of respondents selecting it was Critical Thinking and Problem Solving .

During this week of reflection and looking forward to the rest of the year, I offer 10 basic rules that drive and support critical business thinking and problem solving that are appropriate for all levels of the business from new hires to executive leaders of businesses.

What is Critical Business Thinking in the first place?

Before I provide the 10 basic rules of critical business thinking and problem solving, let me offer a definition of what I think it is.

Critical business thinking is the use of information gathered in a journey to execute a business strategy to arrive at the best conclusion and decision for the business.

Based on this definition, I present my list of the 10 Basic Rules of Critical Thinking and Problem Solving.  Everything on this list is considered a must and if you are serious about building skills around critical thinking and problem solving in yourself and in your organization, they should be non-negotiable.

  • 1) Seek, absorb, and know all of the critical sources of information in your ecosystem

We live in an age if infinite information.  Everyone in a business environment should scan their business ecosystem through the information gathering from reliable and relevant sources of information.  This includes general news, business news, industry news, and digital sources such as groups, and experts.

  • 2) Aggressive preparation

“Winging it” is simply not acceptable.  Critical thinking and problem solving starts with aggressive preparation which means thinking about thinking and making sure possibilities are covered and all sources of information have been used appropriately to prepare for a day, week, month, year, and all activities.

  • 3) Plan your day and make realistic to-do lists

Aggressive preparation is the foundation for executing plans through proactive planning and to-do lists that are realistic.  By proactively planning and being in control of information and situations, the focus can be on the tasks at hand which should be the things necessary to execute the business strategy .

  • 4) Don’t just be on time, be early

Showing up just when the day is starting or when meetings are starting isn’t proactive and doesn’t support critical thinking and problem solving; it probably makes things worse. Being 15 minutes early allows for the ability to see things that others don’t see (or hear) and that information can be used as part of the journey.

  • 5) Be present, listen, and learn

First of all, put the smartphone AWAY!  Put it in your pocket. Unless you are in a critical position like sales or customer service where the execution of your strategy relies on your immediate reaction, put it AWAY.  Be present and focus.  Nobody can think critically if half their attention is on a leaderboard on buzzfeed.  It’s ridiculous.  After you put your phone away, then listen and learn. Each experience, each new piece of knowledge builds the ability to think more critically and solve problems of the business.

  • 6) Share insights (but don’t blather)

People think critically and solve problems are able to clearly share their insights without talking too much, over-selling, or blathering on about non-sense.  By clearly sharing insights, you are then able to listen to reactions and fine-tune your approaches.

  • 7) Acknowledge when you don’t know something

Even the best critical thinkers don’t know everything; but they do have a process for figuring things out.  Acknowledge when you don’t know something and proactively seek the right information through the right resources.

  • 8) Be respectful in the process

Nobody likes a smartass-know-it-all.  The best critical thinkers are respectful and build resources though humility and gratitude.  They build a portfolio of knowledge and accumulate approaches and methods of problem solving that rely on other people.  The best critical thinkers understand a little sugar goes a lot further than a lot of vinegar.

  • 9) Don’t cut corners

One of the most important aspects of good, strong critical thinking and problem solving is doing it right and not cutting any corners.  Cutting corners will inevitably give you the wrong solution and a poor business result.

  • 10) Take pride in your work

And finally, the most important rule; take immense pride and ownership in your work.  By seeking to be the best at what you do and seeking to be the best for your company, you will easily find the right paths along the journey.  Pride is the most important ingredient in critical thinking and problem solving because it implicitly drives you to figure things out in ways that you didn’t think were previously possible.

New Call-to-action

About The Author

Robert Brodo is co-founder of Advantexe. He has more than 20 years of training and business simulation experience.

SUBSCRIBE VIA EMAIL

About advantexe, posts by topic.

  • Business Acumen (47)
  • Business Simulation (25)
  • Business Acumen Skills (23)
  • Business Strategy (22)
  • Business Leadership (17)
  • leadership development (15)
  • Business Simulations (4)
  • Leadership (4)
  • Value Discipline (4)
  • customer intimacy (4)
  • value proposition (4)
  • Business acumen tips (3)
  • product leadership (3)
  • Leadership Training (2)
  • Leading by example (2)
  • Psychological Safety (2)
  • Talent Development (2)
  • Virtual Learning (2)
  • marketing (2)
  • Brand Equity (1)
  • Business Skills Assessment (1)
  • Coaching (1)
  • Cyber Security (1)
  • Sales Training (1)
  • Social Selling (1)
  • Stronger Business Acumen (1)
  • Talent Management (1)
  • Virtual Selling (1)
  • customer service (1)
  • digital marketing (1)

RECENT ARTICLES

Popular articles.

  • Talent Development
  • How We Help
  • Simulations
  • Point of View

1001 Conshohocken State Road, West Conshohocken, Pennsylvania 19428

Copyright by Advantexe Learning Solutions , 2024.

All Rights Reserved

  • Terms & Conditions

Recent Posts

blowing up the business critical thinking

  • Accounting & Finance
  • Communication
  • Critical Thinking
  • Marketing & Strategy
  • Starting a Business
  • Team Management
  • Corporate Philosophy
  • Diversity, Equity, & Inclusion
  • Kokorozashi
  • Sustainable Business
  • AI Ventures
  • Machine Learning
  • Alumni Voices
  • Yoshito Hori Blog
  • Unlimited Insights
  • Career Skills
  • GLOBIS Community

The Best Critical Thinking Questions in Business

Question cards hang from strings with one showing a lightbulb to indicate it's one of the best critical thinking questions

Critical Thinking: Hypothesis-Driven Thinking

Anyone can come up with a good idea. The real challenge is putting that idea into action. In this online course, explore how to form compelling, testable hypotheses and bring ideas to life in your own organization.

Critical Thinking: Structured Reasoning

Even a few simple techniques for logical decision making and persuasion can vastly improve your skills as a leader. Explore how critical thinking can help you evaluate complex business problems, reduce bias, and devise effective solutions.

Critical Thinking: Problem-Solving

Problem-solving is a central business skill, and yet it's the one many people struggle with most. This course will show you how to apply critical thinking techniques to common business examples, avoid misunderstandings, and get at the root of any problem.

Soft skills can be a true superpower in your career, and one of the best among them is critical thinking. Everyone says so, from the World Economic Forum to Forbes .

Much of the power of critical thinking comes from identifying and solving problems through questions. To find out which critical thinking questions have the most value and why, we spoke to three lecturers who teach Critical Thinking at GLOBIS University .

3 Reasons Employers Value Critical Thinking in Business

Critical thinking is a great mental exercise in its own right. It can help with more organized, logical thinking and persuasiveness. It can expand your point of view and, as an extension, raise your emotional intelligence.

But there are a few important reasons employers are seeing the value of critical thinking in business management now more than ever.

Next Article

5 Critical Thinking Interview Questions to Evaluate New Talent

 width=

How to Identify and Remove Barriers to Critical Thinking

 width=

“You want to hire people who can think for themselves.”

Critical thinking in business is important because you want to hire people who can think for themselves and give creative opinions based on their own experiences. This may seem obvious, but you might be surprised how often people look for employees who just reinforce the status quo.

The most valuable employees don’t just accept what we say as management. They think about how and where something works. They also consider where it may not work, why, and what to do about it.

Modern companies must utilize diversity. Diversity of thought requires an inclusive environment where people feel comfortable enough to express a devil’s advocate opinion. Without that, diversity is wasted or, at best, kept from reaching its full potential.

—Brian Cathcart, GLOBIS University

“Conventional wisdom is less and less applicable.”

Things are changing drastically, and everyone is feeling anxious. Conventional wisdom is less and less applicable. But critical thinking enables us to think independently and proactively while questioning conventional wisdom and precedents.

Employers will want to know whether you will work passively in the face of drastic change or become a human resource who can take charge of opportunities and solve problems proactively.

—Hideaki Kanazawa, GLOBIS University

“We need to make better business decisions.”

In an age where technology is moving quickly and we have access to more information than ever before, there remains one constant: We need to make better business decisions.

The essential skills of critical thinking, including analysis, communication, and problem solving , are applicable across a wide variety of fields. Employees who have a solid foundation of these skills can flexibly apply them to the changing nature of business , especially in roles where strategy is an important part of the job.

—Alex Scharf, GLOBIS Corporate Education

5 of the Best Books on Critical Thinking and Problem-Solving

 width=

The Importance of Critical Thinking and Problem-Solving in Startup Culture

 width=

5 Critical Thinking Questions for the Business World

Employers are seeking critical thinking skills in business. So how can you demonstrate that you have them?

One of the core components of critical thinking is asking questions . Here are a few recommendations from GLOBIS lecturers that can be applied to your day-to-day thought process and stimulate your skills as a critical thinker and problem solver.

“Why me, why this, why now?”

Even if you trust your boss (and I hope you do!), you want to ask yourself contextual questions like, “Why are they asking me to do this now?” There are three critical thinking keywords here:

These are all significant for understanding the background of assigned tasks and therefore becoming a more effective employee.

It’s important to understand why a task is important to the greater context of the company strategy. Considering that can help you think and act more strategically and communicate more persuasively . It can also help you in your career planning.

“Do you agree or disagree?”

Often people get stuck at the starting point, wasting time when they could be analyzing the problem and digging deeper. It’s difficult to stare at a blank slate and come to a meaningful decision, so I always encourage learners to start with their instinctual response.

Of course, once you collect facts and draw conclusions , it’s more than OK to change your position. In fact, by changing your position and preparing counterarguments to the opposite point of view, you can often make your argument stronger.

“Is this an important question?”

Peter Drucker said, “The most serious mistakes are not being made as a result of wrong answers. The truly dangerous thing is asking the wrong questions.”

We tend to either think about the questions we really want to think about or work on issues our bosses assign us to without question. It’s also easy to get swept up in the information at hand and lose sight of the big picture. However, if you get off to the wrong start, everything you think about after that will take you in the wrong direction.

The most important thing is to be willing to ask yourself, “Is this really something I should think about?” or “Is this an important question?” These questions will help ensure you’re looking at the right issue in the first place.

Critical Thinking as Rethinking

Even a solid grasp of frameworks like MECE , logic trees , and the Pyramid Principle won’t enable you to solve problems instantly. The ability to think critically involves analysis, hypothesis testing, and rethinking in order to make an informed decision.

As Kanazawa puts it, “Critical thinking is a way of solving problems by objectively analyzing them with a healthy critical spirit.” Incorporating critical thinking questions will ensure that spirit adds value to your organization and spurs your growth as a professional in a changing world.

Related Articles

Need help prioritizing tasks try the eisenhower matrix.

 width=

How Recruiting Companies in Japan Are Connecting Foreign Grads with Global Careers

 width=

One-to-one Marketing: The New Age of Parasocial Relationships 

 width=

Get monthly Insights

Sign up for our newsletter! Privacy Policy

GLOBIS Insights

  • Submission Guidelines
  • Our Contributors

Accountability

  • Privacy Policy

GLOBIS Group

  • GLOBIS Corporation
  • GLOBIS University
  • GLOBIS Capital Partners
  • GLOBIS Asia Pacific
  • GLOBIS Asia Campus
  • GLOBIS China
  • GLOBIS Europe
  • GLOBIS Thailand
  • G1 Institute
  • Ibaraki Robots Sports Entertainment
  • KIBOW Foundation

© GLOBIS All Rights Reserved

Critical Thinking Case

Innovation and e-mail rules.

This chapter provides insights into how manufacturing and service organizations can implement processes and controls to increase efficiency, manage expenditures, and increase profits for the organization. For companies such as General Motors that need to manage suppliers and make sure that all components are procured on time and at the best costs to ensure the final assembly runs efficiently, and for service organizations such as Marriott, which wants to have clean rooms and an efficient check-in process when guests arrive, the main lessons of this chapter are readily apparent.

All companies, however, need to innovate continuously to improve their products and services. Automobile companies such as General Motors have to constantly measure customer tastes and needs and provide products that meet and exceed their expectations. Likewise, Marriott needs to cater to the needs of business and leisure travelers in a variety of locations.

Perhaps no company in recent years has captured the attention of the public more than Tesla and SpaceX, both headed by CEO Elon Musk. Tesla is named after the inventor Nicola Tesla, a contemporary of Thomas Edison, who designed the first electric engine. SpaceX is a company that is known for innovation such as reusing rocket launchers to reduce costs. While Tesla and SpaceX still manage their operations with all the processes covered in this chapter, their constant innovation requires new processes.

Perhaps no aspect of modern business has had a bigger impact than the proliferation of e-mail. No longer confined to the desktop, e-mail messages are delivered via mobile devices, and managers must find ways to manage the proliferation of communication to keep on top of things.

Elon Musk communicated the processes and rules for communicating at Tesla in this e-mail to all employees.

Subject: Communication Within Tesla

There are two schools of thought about how information should flow within companies. By far the most common way is chain of command, which means that you always flow communication through your manager. The problem with this approach is that, while it serves to enhance the power of the manager, it fails to serve the company. Instead of a problem getting solved quickly, where a person in one dept talks to a person in another dept and makes the right thing happen, people are forced to talk to their manager who talks to their manager who talks to the manager in the other dept who talks to someone on his team. Then the info has to flow back the other way again. This is incredibly dumb. Any manager who allows this to happen, let alone encourages it, will soon find themselves working at another company. No kidding. Anyone at Tesla can and should email/talk to anyone else according to what they think is the fastest way to solve a problem for the benefit of the whole company. You can talk to your manager’s manager without his permission, you can talk directly to a VP in another dept, you can talk to me, you can talk to anyone without anyone else’s permission. Moreover, you should consider yourself obligated to do so until the right thing happens. The point here is not random chitchat, but rather ensuring that we execute ultra-fast and well. We obviously cannot compete with the big car companies in size, so we must do so with intelligence and agility. One final point is that managers should work hard to ensure that they are not creating silos within the company that create an us vs. them mentality or impede communication in any way. This is unfortunately a natural tendency and needs to be actively fought. How can it possibly help Tesla for depts to erect barriers between themselves or see their success as relative within the company instead of collective? We are all in the same boat. Always view yourself as working for the good of the company and never your dept. Thanks, Elon
  • Why would an e-mail rules memo like this work better at an innovation-driven company such as Tesla rather than at a manufacturing-driven company such as General Motors?
  • What are the potential problems that could arise out of this approach to e-mail?

Sources: Justin Bariso, “This Email From Elon Musk to Tesla Employees Describes What Great Communication Looks Like,” Inc. , https://www.inc.com, accessed February 20, 2018; John F. Wasik, “Tesla the Car Is a Household Name. Long Ago, So Was Nikola Tesla,” The New York Times , https://www.nytimes.com, December 30, 2017; Ken Costlow, “Ground Broken on New General Motors Supplier Park,” Arlington Voice, https://arlingtonvoice.com, June 19, 2017.

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/introduction-business/pages/1-introduction
  • Authors: Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt
  • Publisher/website: OpenStax
  • Book title: Introduction to Business
  • Publication date: Sep 19, 2018
  • Location: Houston, Texas
  • Book URL: https://openstax.org/books/introduction-business/pages/1-introduction
  • Section URL: https://openstax.org/books/introduction-business/pages/10-critical-thinking-case

© Apr 5, 2023 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

  • Starting a Business
  • Growing a Business
  • Business News
  • Science & Technology
  • Money & Finance
  • Subscribers For Subscribers
  • ELN Write for Entrepreneur
  • Store Entrepreneur Store
  • Spotlight Spotlight
  • United States
  • Asia Pacific
  • Middle East
  • South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

3 Steps to Blowing Up Your Business Firing 20 percent of your sales team really motivates the remaining 80 percent.

By Grant Cardone • Sep 28, 2017

Opinions expressed by Entrepreneur contributors are their own.

All businesses are built on sales. Selling is to an organization what food, water and oxygen are to the body. Take time to learn the mechanics and true art of selling and you'll be a millionaire. Despite the myth, no one is "born a salesman." I am an expert in sales, but trust me I was not born a salesperson. This is why you must take every opportunity you have to learn the art of selling.

My good friend and business partner Victor Antonio spoke on selling at 10XGrowthCon discussing three steps you should be aware of to blow your business up:

Victor Antonio: "When I moved into selling, they gave me a territory and I still remember the conversation with the president. He said, "Victor, I'm putting you in charge of the territory, and this territory has never made more than $14 million. Whatever you do, do not sell less than $14 million.' That was the mandate. So, I had to go to work. What did I do?

Related: 5 Ways to Keep Your Sales Teams Motivated This Summer

Step 1 : The Assessment

First I analyzed the territory. I looked at my territory for 90 days. I traveled with salespeople, went with them on their meetings, basically watched their presentation. And what was I looking for? Were they meeting with decision makers, yes or no? Were they positioning the value, as opposed to selling price? At the end of 90 days, I had to make a decision. I had good clay and bad clay.

When you study your salespeople for 90 days, it shouldn't even take that long. You could probably figure out who were the best salespeople within the first 30 minutes. But I spent 90 days with these salespeople and I had three categories. There were people who were exceptional, 20 percent of my salespeople were exceptional. Then at the other extreme, I had 20 percent of the people who simply didn't know how to sell, who were what I call "bad clay." What did I do with those? I fired them.

What I typically find out is 20 percent of salespeople are great and 20 percent are not that good, so get rid of them. But right in the middle, if there are people who are good clay -- that are on the bubble -- then all you need to do is train them.

Related: 7 Must-Know Tips for Managing Your Millennial Sales Team

Step 2: Mark Territory.

One of the things that wasn't happening is that we had not basically segmented the market. And what I did is immediately I started marking the territory. I split the region into seven territories. Why was this important? Because here's what I found out, salespeople were flying across regions, trying to sell something, instead of selling locally, which drove up my cost.

It was also causing conflict with my sales team, because people are going into their backyards to sell something they shouldn't have sold. Also, the customers were confused because two to three salespeople would actually visit them from the same company. If you're not marking your territory, if you don't give them a territory, they're confused. Remember, "Clarity breeds confidence.' This is the whole thing about eating an elephant whole, you can't do it. So, segment your market, mark your territory.

Related: The 4 Essentials for Retaining and Motivating Your Direct Sales Force

Step 3: Define Your Verticals

If you have your territories marked out, now the real key is how much money are in the vertical segments of these territories? How do you size your revenue?

Let's pretend for a moment you're selling a software system and it's a payroll software system. If you're selling software, then you might want to go after healthcare providers. So maybe a vertical would be dentist. Maybe another one would be chiropractors. Then grid everything out. What do I mean by that?

I looked at each vertical market, looked at each segment and say "What is the revenue potential in those markets?' I want to give you a simple formula for sizing your market. Look at the number of opportunities in your market. Multiply it by the win rate and then the average deal size.

This is how you can scale your business -- figure out your revenues by finding the number of opportunities in your area, multiply it by the win rate and multiply that by the actual deal size. You can then size the region.

Let's pretend for a moment that there are 250 dentists in your territory of Miami. I would write down 250. If you believe that you can close 10 percent of those deals and your average deal size is $20,000 then you know you have a $500,000 market.

You've got your territories, you've got your verticals, now you have to make a key decision. How do you get the business? Anything that has a million dollars, scale it…because if there's a million dollars potential revenue, you should hire a direct salesperson."

Victor gives a great overview there of what you need to do to blow your business up. Much more will be talked about at the next 10XGrowthCon where we will look to take you and your business to the next level.

International Sales Expert & $1.78B Real Estate Fund Manager

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

  • She Never Wanted to Start a Business , But Chronic Insomnia Was Motivation — Here's How She Achieved 8 Figures in Sales and 8 Hours of Sleep a Night
  • Lock There's a Retirement Crisis on the Horizon — See How Your Savings Compare to the Rest of Your Generation's
  • Lock Is There a Superior Diet for the Entrepreneur? The 'Father of Biohacking' Shares What He Eats for High Energy, Low Body Fat and Optimal Output
  • This Startup Pays Users to Watch Ads While Streaming Their Favorite Shows
  • Lock A Side Hustle Consultant Shares the Most Lucrative Gigs Right Now
  • He Owns and Operates a Dozen Popular Nightlife Venues in New York — Here's How He Kept All of His Businesses Afloat in a Crisis

Most Popular Red Arrow

This gen zer's stylish side hustle earns about $20,000 a month and paid off his parents' $200,000 debt: 'i enjoy the hands-off nature'.

Ray Cao went from working as a barista for $8 an hour to being a successful seller on online marketplace StockX.

Want to Succeed? Learn to Say 'No'

As a first-year founder and entrepreneur, saying "yes" to every opportunity can hurt your chance of survival.

This Grade-A Refurbished 2-in-1 Chromebook Is Just $100 This Week Only

Save significantly on this dynamic second generation device with 4GB of RAM and a near 12-inch screen.

It's Time to Clean Up Your Act — How to Manage Your Reputation in the Era of AI

Question: Where's the best place to hide a dead body (or a damaging article about your brand)? Answer: On page 2 of Google search — well, until now.

You Could Pay Millions in Fines for Not Adhering to New Compliance Regulations That Take Effect This Year. Here Are 6 Strategies to Keep Yourself in Check.

New or evolving rules and regulations are a fact of corporate life. How employees embrace these new rules — and associated education and training processes — can make a big difference to organizational performance as well as the financial bottom line.

Costco Closes Its Food Court to Non-Members, Leaving $1.50 Hot Dog and Soda Combo Fans Devastated

Membership fees made up 73% of Costco's net profits last year.

Successfully copied link

comscore

Blow Up Your Business Model

Want to boost sales, strengthen the bottom line, and thrive? Mold your company into an agile risk taker and achieve fearless growth.

blowing up the business critical thinking

Growth has always been fundamental to business success, but it's never been more critical than it is now. Rapid changes in technology, shifting customer expectations, disruptive business models, and quickly evolving regulations force organizations to innovate quickly and invest in new lines of business that will fuel future growth. Problem is, the same forces that make growth imperative also make it incredibly daunting.

The old ways of doing business no longer work. Like it or not, it's time to throw out the old rule book and start fresh with approaches that make sense for the new economy. The strategies that help you facilitate trust, learning, creativity, and partnership seem counter intuitive at first, but will soon pave the way to success not only for you but for your team and your customers as well.

When the rules you used to live by become obsolete overnight, it doesn't exactly foster calmness and confidence. Leaders have to wrestle with some tough strategic dilemmas: Should we disrupt our own business before someone else does or focus on protecting it? Do we develop new capabilities internally or partner? Do we craft a careful plan or simply plunge right in? And yet, we can't afford to let fear, uncertainty, and doubt paralyze us.

To respond quickly and intelligently to the fast pace of change, all levels and functions in your businesses must be creative, responsive, and agile. You're going to feel fear, sure – and yet you must act in spite of it. In other words, practice fearless growth. Here are seven rules fearlessly growing companies live by and thrive.

Rule #1 Embrace uncertainty

People are wired to fear uncertainty, but it's important to capitalize on uncertainties in your market. Companies that grow fearlessly know that highly predictable markets often create situations in which all competitors look alike and margins are thin – thus, market uncertainties create new opportunities for them to differentiate themselves. These companies take prudent risks and know how to manage risk. In short, they operate confidently in uncertainty.

Uncertainty creates opportunities to pull ahead of the competition. Having the right risk mentality and moving quickly gives you an advantage over competitors that are slower to respond. Take a cue from the film industry and try placing multiple small bets. Repeat past successes and keep budgets realistic and proportionate to projects. You can also target niche customer groups.

Rule #2 Get in sync with your customers

Your customers are a powerful yet often under utilized source of ideas for new products and services, improved current offerings, and new ways to do business. In fact, they're often willing to contribute by giving product improvement ideas, technical support for other customers, videos, reviews, referrals, content related to your products, and other marketing value; all of which helps you stay in sync, mitigate risk, and remain prepared for whatever the future might bring.

You can stay ready for the future by collaborating with customers, paying attention to outliers, and observing how customers customize and use your products. Even top executives are getting involved in customer interaction. Home Depot executives work in the stores, helping customers and providing advice just as a typical store associate would. But there are plenty of other ways for companies and customers to collaborate.

When you allow customers to customize the products and services you sell, you learn a lot about them. This gives you the information to innovate new products and services and ways of doing things and stimulate growth. You can also observe and cater to your outlier customers – the ones who use your products and services in unusual ways – to gain insights. They can provide you with a window into emerging market trends and ideas for new products and services.

Rule #3 Partner, borrow, and share

In the past, businesses needed to own or take responsibility for every aspect of their value chain, from research to development to operations to sales and marketing. Not anymore. Today, businesses that grow fearlessly crowdsource, outsource, and make use of freelancers, bloggers, microbusinesses, individual innovators, and myriad partners to achieve far more than they could on their own.

You don't need physical assets to grow huge in terms of reach and value. Alibaba is the most valuable company in Asia, but it has no inventory. Airbnb has a greater market capitalization than Marriott but owns no hotels or real estate. Uber is the world's largest car service but owns no cars.

If you can collaborate with others outside your company, you can experience rapid adaptation when the market changes. Plus, it benefits you to outsource things that are not your distinctive competency. All of this leverages the ideas and capabilities outside your company, while strengthening the people, processes, and capabilities inside it.

Rule #4 Connect and strengthen your ecosystem

When you create the right ecosystem for your company, it will take on a life of its own and grow itself. Look at Airbnb: Before they came along, staying in someone's home was risky business because guests did not know who to trust. But Airbnb solves this problem by creating a platform for guests and hosts to score each other. And many guests enjoy making friends with their hosts, having access to advice about local haunts, great places to eat, and how to escape the tourist trail.

Once an ecosystem gets going, it becomes self-sustaining and enables fearless growth. Figure out who's already in your company's ecosystem and whom you would ideally like to have there. Then determine what value you would like each member to both give and receive. Consider creating a technology platform to enable richer interactions between ecosystem members and facilitate and nurture their real-life relationships with each other as well. Building the strength, size, and participation in your ecosystem can fuel growth, build customer loyalty, and insulate your company from market upsets.

Rule #5 Open the floodgates of employee creativity

Employees want to be engaged in their work and want to contribute to something greater than themselves. Too often, however, employers squander their talent by over-measuring, micromanaging, and failing to inspire. They may even punish employees who get too far ahead of company management, instead of rewarding them for their initiative. It's important to facilitate employees' natural desire to collaborate with others and to grow their own skills. By giving employees the freedom, knowledge, and network they need, you will unlock vast power.

There are many steps you can take to get the best from your employees. First, don't be afraid to say, “I don't know.” Revealing your own ignorance welcomes people at all levels to share their opinions and perspectives. You can also energize them by instilling a sense of purpose, which will especially appeal to millennials.

Be sure to continually pose new questions and challenge assumptions by introducing competition or games to stimulate new ways of thinking and free people to take risks. Allow new ways to work by encouraging collaboration and forming project-based groups, rather than top-down structures. Finally, communicate your values clearly and frequently, so employees know what you expect, even when no one is looking.

Rule #6 Learn fast and fearlessly

Fast learning, coupled with an "experimentation mind-set," is the most valuable competitive advantage a company can build. For example, UPS knows that regulations may someday require lower emissions and improved fuel efficiency, so it has a "rolling laboratory" of 11 different types of alternative-fuel and advanced-technology vehicles in use today. UPS is ahead of regulations in learning how to optimize each vehicle for the various driving conditions – from dense urban driving to remote rural driving.

Keenly observing the business environment, taking action before you feel fully ready, and incorporating what you've learned immediately into your strategy are all tickets to playing in today's fast-changing global economy. Make sure you are constantly experimenting, learning from successes and failures, and applying your knowledge. Anticipate the changes in your business environment and set specific learning goals based on those changes. Take action and begin learning the moment you know what you need to learn to be successful.

Rule #7 Build trust into all you do

Trust is the ingredient that enables the growth of relationships with employees, business partners, customers, and those in your work community. By trusting that your colleagues will do their part, you can set more aggressive goals, place bigger bets, and have a bigger imagination about what may be possible. When there is trust between coworkers, everyone feels comfortable engaging in the debate and disagreement required to make sound decisions. Trusting your business partners means you can move faster together, navigating uncertain terrain with greater confidence.

Trust speeds innovation and growth and improves efficiency. To build trust, neutralize fear in your organization, making it psychologically safe for employees to voice their ideas and opinions, make decisions, take action, gain new skills, and try new things. Give people challenging but realistic goals, act in a transparent way, show vulnerability, grant people discretion about how they do their work, and show appreciation for work done well, you'll be amazed what your team accomplishes. Finally, foster and expect creative conflict by encouraging employees to disagree and challenge each other.

Amanda Setili is president of strategy consulting firm Setili & Assoc.

5 Obstacles Blocking Sales Success

May 2018

Explore the May 2018 Issue

Check out more from this issue and find you next story to read.

Latest from Snow Magazine

  • NOTEBOOK: Go With The Flow
  • NOTEBOOK: Winter Equipment Offers the RoadMAXX System
  • NOTEBOOK: Yanmar Unveils Compact Loader Lineup
  • NOTEBOOK: Schill Expands in Southwest Ohio
  • October Cover Story: Achieving Wet Pavement
  • August 2022 Cover Story: Beat The Odds
  • May 2022 Cover Story: Bullish on Snow & Ice
  • 2022 Top 100

More from Snow Magazine

blowing up the business critical thinking

NOTEBOOK: New Winter Tool

blowing up the business critical thinking

Divorce-Proof Your Business

blowing up the business critical thinking

NOTEBOOK: Clean Sweep

blowing up the business critical thinking

NOTEBOOK: New Attachment Company Launches

blowing up the business critical thinking

Address New And Damaging Employee Attitudes

blowing up the business critical thinking

NOTEBOOK: Are We Facing A Deicing Meltdown?

More from this author, trust busters.

GCFGlobal Logo

  • Get started with computers
  • Learn Microsoft Office
  • Apply for a job
  • Improve my work skills
  • Design nice-looking docs
  • Getting Started
  • Smartphones & Tablets
  • Typing Tutorial
  • Online Learning
  • Basic Internet Skills
  • Online Safety
  • Social Media
  • Zoom Basics
  • Google Docs
  • Google Sheets
  • Career Planning
  • Resume Writing
  • Cover Letters
  • Job Search and Networking
  • Business Communication
  • Entrepreneurship 101
  • Careers without College
  • Job Hunt for Today
  • 3D Printing
  • Freelancing 101
  • Personal Finance
  • Sharing Economy
  • Decision-Making
  • Graphic Design
  • Photography
  • Image Editing
  • Learning WordPress
  • Language Learning
  • Critical Thinking
  • For Educators
  • Translations
  • Staff Picks
  • English expand_more expand_less

Critical Thinking and Decision-Making  - Using Brain Teasers to Build Critical Thinking Skills

Critical thinking and decision-making  -, using brain teasers to build critical thinking skills, critical thinking and decision-making using brain teasers to build critical thinking skills.

GCFLearnFree Logo

Critical Thinking and Decision-Making: Using Brain Teasers to Build Critical Thinking Skills

Lesson 4: using brain teasers to build critical thinking skills.

/en/problem-solving-and-decision-making/decisionmaking-strategies/content/

Using brain teasers to build critical thinking skills

Here's a brain teaser: A rooster is on the roof of a barn facing east. The wind is blowing to the west at 10 miles per hour. The rooster lays an egg. Which direction does the egg roll?

The answer appears below the image.

an illustration of a rooster on the roof of a barn with an egg at its peak

Answer: There is no egg. The rooster didn't lay one because roosters are male. Did you get it right? Let's pick this apart and see why so many people have difficulty with this brain teaser, and so many others.

Watch the video below to learn more about how you can use brain teasers to improve your critical thinking.

The answer is in the details

It's easy to overlook details or accept them without questioning. In the brain teaser above, the answer could be found in the second word: r ooster .

an illustration of a rooster looking for an egg in its nest

In hindsight, we realize it's impossible for roosters to lay eggs. But it's easy to overlook this when it's casually mentioned in the brain teaser.

Misdirection

Another process at work in this brain teaser is misdirection . There were several details included that we may have paid too much attention to: The fact that the rooster was facing east, and that the wind was blowing west at 10 miles per hour.

an illustration of a rooster facing east and the wind blowing west at 10mph

In the end, these details had nothing to do with the actual answer. However, they seemed important in the context of the brain teaser! This directed us away from the relevant information.

Applying these ideas to the real world

The same techniques we use to solve brain teasers can also be applied to real-world situations . When you're trying to figure something out, it's important to analyze the information that's available to you and ask the following questions:

  • Are there any key details I may be missing?
  • Am I being misled by something?
  • Could I be thinking about this in another way?

an illustration of someone asking themselves questions

Brain teasers not only help to keep your mind sharp, but can help improve your critical thinking skills as well.

Let's finish things off with another brain teaser...

You are in a dark room with a single match. The only objects available to you are a candle, an oil lamp, and a gas stove. Which item do you light first?

illustration of a dark room with a candle, an oil lamp, and a gas stove

Answer: The match!

previous

/en/problem-solving-and-decision-making/navigating-todays-health-crazes/content/

IMAGES

  1. How You Can Improve Your Critical Thinking Skills

    blowing up the business critical thinking

  2. How to Develop Critical Thinking Skills

    blowing up the business critical thinking

  3. Why Critical Thinking is Important for Businesses?

    blowing up the business critical thinking

  4. Making Better Decisions through Critical Thinking

    blowing up the business critical thinking

  5. 💋 What is critical thinking examples. What Is Critical Thinking?. 2022

    blowing up the business critical thinking

  6. What it means to be a critical thinker and why marketers need to

    blowing up the business critical thinking

VIDEO

  1. Critical Ops First Ever Trade Up

  2. Blowing Up The End in 6.73 Seconds

  3. U.K. Business Wants Focus on Economy, Newton-Smith Says

  4. Is Woodshop The Most Important Class In School?

  5. 30 Mind-blowing Night Time Questions To Reveal Your Partner's Secrets!

  6. "Mind-Blowing Riddle Challenge! 🤔 Can YOU Solve This Brain Teaser?

COMMENTS

  1. Challenge how the business operates

    - When you go to generate new ideas to run things better, you need to think critically about the way your business runs. I like to look at three things: a business model blowup, a revenue blowup ...

  2. How Blowing Up Your Business Can Drive Innovation

    When we talk about blowing up the business, we look at three kinds of explosives: blowing up the business model, blowing up your revenues, and blowing up your costs. ... then analyze and select the best solution by using time-tested critical thinking methods and tools. VIEW COURSE. Structured Thought and Communication.

  3. Critical Thinking Online Class

    He reveals how to define the problem you're trying to solve and then provides a number of critical thinking tools such as blowing up the business, asking the 5 whys and the 7 so whats, exploring ...

  4. Why Is Critical Thinking Important for Business Growth?

    Businesses thrive on well-informed decision-making, and critical thinking is the compass that guides this process. A workforce with critical thinking skills is adept at gathering, analyzing, and synthesizing information, leading to strategic, informed, and unbiased choices. This, in turn, minimizes errors and maximizes positive outcomes, laying ...

  5. Improve Your Critical Thinking at Work

    Instead, leaders should deliberately approach each problem and devote time thinking through possible solutions. The good news, she says, is that critical thinking skills can developed and ...

  6. Critical Thinking

    In this course, leadership trainer and expert Mike Figliuolo outlines a series of techniques to help you develop your critical thinking skills. He reveals how to define the problem you're trying to solve and then provides a number of critical thinking tools such as blowing up the business, asking the 5 whys and the 7 so whats, exploring the ...

  7. Why Critical Thinking Matters in Your Business

    Employees with critical thinking are also more likely to accomplish the following: Analyzing information. Thinking outside the box. Coming up with creative solutions to sudden problems. Devising ...

  8. Critical Thinking and the Urgency Trap

    The good news? Critical thinking is a teachable skill, and one that any person can learn to make time for when making decisions. To improve and devote time for critical thinking at work, consider the following best practices. 1. Question assumptions and biases. Consider this common scenario: A team is discussing a decision that they must make ...

  9. Everything You Need to Know About Critical Thinking Skills for Business

    One scholarly explanation of critical thinking goes something like: a system of thought incorporated in scientific, mathematical, historical, anthropological, moral, philosophical and economic thinking. Yeah, that definition's a 0 out of 10 on the helpfulness scale. Critical thinking is more than knowing about something.

  10. The Business Analyst's Guide To Encouraging Critical Thinking

    You present a business analysis plan and ask your team members to share their thoughts. Now, imagine two situations. In the first one, everyone says "that's great, boss!". They nod and approve of everything you say. You ask if they would add or adjust anything in the plan. They say it's perfect. In the second situation, everyone starts ...

  11. Critical Thinking Strategies for Business Leaders

    Break the process down into multiple steps and critically assess the market dynamics, common objections, legal obstacles, user experience, and your target market. 2. Promoting a Staff Member. Handing a manager/lead role seems natural at first for your loyal employees.

  12. How to Develop Critical Thinking Skills in Business That Make You Smarter

    3. Be aware of your biases and mental processes. 4. Reverse your approach. 5. Evaluate existing evidence. Critical thinking skills result in better business decisions. W e've heard about the importance of critical thinking skills in school, but it's not always a common topic in the business world. The truth is, graduation day doesn't mean ...

  13. CRITICAL THINKING AND DECISION MAKING IN BUSINESS

    Critical thinking is the ability to reflect deeply, analyse and interpret information, and make considered decisions. It is the opposite of making snap decisions and following gut feelings. A critical thinker can synthesise information to problem-solve, collaborate, strategise, assess risk and deal with uncertain or ambiguous situations.

  14. 10 Best Critical Thinking Tips from Business Experts

    "Critical thinking in business is not merely about identifying problems, it's about digging deeper, peeling off layers of data, and understanding the underlying patterns, trends, and unseen risks. So, my advice to any business owner is this: don't just think; think critically. ... Ask follow-up questions. If you don't understand the answer to ...

  15. 10 Basic Rules of Critical Business Thinking and Problem Solving

    9) Don't cut corners. One of the most important aspects of good, strong critical thinking and problem solving is doing it right and not cutting any corners. Cutting corners will inevitably give you the wrong solution and a poor business result. 10) Take pride in your work. And finally, the most important rule; take immense pride and ownership ...

  16. The Best Critical Thinking Questions in Business

    The ability to think critically involves analysis, hypothesis testing, and rethinking in order to make an informed decision. As Kanazawa puts it, "Critical thinking is a way of solving problems by objectively analyzing them with a healthy critical spirit.". Incorporating critical thinking questions will ensure that spirit adds value to your ...

  17. PDF Critical Thinking Means Business

    Too Little Critical Thinking = Big Problems The U.S. Department of Labor has identified Critical Thinking as the raw material of a number of key workplace skills, such as problem solving, decision making, organizational planning, and risk management. There is no lack of examples of what happens when an absence of Critical Thinking in business

  18. Ch. 10 Critical Thinking Case

    SpaceX is a company that is known for innovation such as reusing rocket launchers to reduce costs. While Tesla and SpaceX still manage their operations with all the processes covered in this chapter, their constant innovation requires new processes. Perhaps no aspect of modern business has had a bigger impact than the proliferation of e-mail.

  19. Why Your Business Needs Critical Thinking

    Critical thinking enables employees to consider multiple perspectives and potential outcomes of different decisions, leading to better choices that are more likely to succeed. The ability to ...

  20. 3 Steps to Blowing Up Your Business

    Multiply it by the win rate and then the average deal size. This is how you can scale your business -- figure out your revenues by finding the number of opportunities in your area, multiply it by ...

  21. Thinking Critically: The Everyday Life and Business Superpower

    In business, critical thinking is a valuable skill because it allows individuals to make better decisions, solve problems more effectively, and come up with new and innovative ideas.

  22. Blow Up Your Business Model

    Rule #7 Build trust into all you do. Trust is the ingredient that enables the growth of relationships with employees, business partners, customers, and those in your work community. By trusting that your colleagues will do their part, you can set more aggressive goals, place bigger bets, and have a bigger imagination about what may be possible.

  23. Using brain teasers to build critical thinking skills

    The answer is in the details. It's easy to overlook details or accept them without questioning. In the brain teaser above, the answer could be found in the second word: rooster. In hindsight, we realize it's impossible for roosters to lay eggs. But it's easy to overlook this when it's casually mentioned in the brain teaser.