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

critical thinking business decisions

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.

Our Recommendations

  • Best Small Business Loans for 2024
  • Businessloans.com Review
  • Biz2Credit Review
  • SBG Funding Review
  • Rapid Finance Review
  • 26 Great Business Ideas for Entrepreneurs
  • Startup Costs: How Much Cash Will You Need?
  • How to Get a Bank Loan for Your Small Business
  • Articles of Incorporation: What New Business Owners Should Know
  • How to Choose the Best Legal Structure for Your Business

Small Business Resources

  • Business Ideas
  • Business Plans
  • Startup Basics
  • Startup Funding
  • Franchising
  • Success Stories
  • Entrepreneurs
  • The Best Credit Card Processors of 2024
  • Clover Credit Card Processing Review
  • Merchant One Review
  • Stax Review
  • How to Conduct a Market Analysis for Your Business
  • Local Marketing Strategies for Success
  • Tips for Hiring a Marketing Company
  • Benefits of CRM Systems
  • 10 Employee Recruitment Strategies for Success
  • Sales & Marketing
  • Social Media
  • Best Business Phone Systems of 2024
  • The Best PEOs of 2024
  • RingCentral Review
  • Nextiva Review
  • Ooma Review
  • Guide to Developing a Training Program for New Employees
  • How Does 401(k) Matching Work for Employers?
  • Why You Need to Create a Fantastic Workplace Culture
  • 16 Cool Job Perks That Keep Employees Happy
  • 7 Project Management Styles
  • Women in Business
  • Personal Growth
  • Best Accounting Software and Invoice Generators of 2024
  • Best Payroll Services for 2024
  • Best POS Systems for 2024
  • Best CRM Software of 2024
  • Best Call Centers and Answering Services for Busineses for 2024
  • Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
  • Rippling vs Gusto: An In-Depth Comparison
  • RingCentral vs. Ooma Comparison
  • Choosing a Business Phone System: A Buyer’s Guide
  • Equipment Leasing: A Guide for Business Owners
  • HR Solutions
  • Financial Solutions
  • Marketing Solutions
  • Security Solutions
  • Retail Solutions
  • SMB Solutions

Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip business owners with the knowledge and confidence to make informed decisions. As part of that, we recommend products and services for their success.

We collaborate with business-to-business vendors, connecting them with potential buyers. In some cases, we earn commissions when sales are made through our referrals. These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. We are committed to providing trustworthy advice for businesses. Learn more about our full process and see who our partners are here .

Why Critical Thinking Matters in Your Business

Critical thinking should become a second-nature skill for leaders and employees across your organization.

author image

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

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. 

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.

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.

The Path to Critical Thinking

by Stever Robbins

Can you write a refresher on critical thinking?

What's logic got to do with it? Nothing! We don't use logic to decide, or even to think. And a good thing, too, or the advertising industry would be dead in the water. Unfortunately, all of our decisions come from emotion. Emotional Intelligence guru Daniel Goleman explains that our brain's decision-making center is directly connected to emotions, then to logic. So, as any good salesman will tell you, we decide with emotion and justify (read: fool ourselves) with logic.

Purely emotional decision making is bad news. When insecurity, ego, and panic drive decisions, companies become toxic and may even die. Just look at all the corporate meltdowns over the last five years to quickly understand where emotional decision making can lead.

Critical thinking starts with logic. Logic is the unnatural act of knowing which facts you're putting together to reach your conclusions, and how. We're hard-wired to assume that if two things happen together, one causes the other. This lets us leap quickly to very wrong conclusions. Early studies showed that increasing light levels in factories increased productivity. Therefore, more light means more productivity? Wrong! The workers knew a study was being done, and they responded to any change by working harder, since they knew they were being measured—the Hawthorne Effect.

We also sloppily reverse cause and effect. We notice all our high performers have coffee at mid-morning, and conclude that coffee causes high performance. Maybe. Maybe not. Maybe high performers work so late and are so sleep deprived that they need coffee to wake up. Unless you want a hyper-wired workforce, it's worth figuring out what really causes what.

There are many excellent books on logic. One of my favorites is the most-excellent and most-expensive Minto Pyramid Principle by Barbara Minto. It's about logic in writing, but you can use it for any decision you want to think through in detail.

The trap of assuming You can think critically without knowing where the facts stop and your own neurotic assumptions begin. We aren't built to identify our own assumptions without lots of practice, yet the wrong assumptions are fatal.

When we don't know something, we assume. That's a fancy way of saying, "we make stuff up." And often, we don't realize we're doing it. When our best performers leave, our first (and perhaps only) response is to offer them more pay, without realizing that other motivations like job satisfaction or recognition for accomplishments might be more important.

Finding and busting "conventional wisdom" can be the key to an empire. For decades, the standard video rental store model assumed that people wanted instant gratification and, to get it, they were willing to drive to a store, pay a rental fee for a few days' access, and then drive back to the store in a few days to return the movie. Thousands of big and small video rental parlors popped up across the country using this model. But Reed Hastings challenged those assumptions. He calculated that people would trade instant gratification for delayed, and would pay a monthly fee if they could have movies mailed to them, which they could keep as long as they liked. The result? Netflix. Estimated 2005 revenue: $700 million.

Assumptions can also cripple us. A CEO confided that he never hires someone who backs into a parking space. His logic (and I use the term loosely): The person will use time at the start of the day so they can leave more quickly at the end of the day. He assumes face time equals results. In whose world? Many people tell me they get more done in an hour at home than in eight hours in an interruption-prone office. How many great employees will he miss because he's not examining his assumptions?

Some assumptions run so deep they're hard to question. Many managers can't imagine letting people work fewer hours for the same pay. "If they go home earlier, we have to pay them less." Why? "Hours = productivity" is true of assembly lines, but not knowledge work. Research shows that it's not how much you work, but the quality of the work time that drives results. 2 But in most workplaces, hours count as much as results.

Next time you're grappling with a problem, spend time brainstorming your assumptions. Get others involved—it's easier to uncover assumptions with an outside perspective. Then question the heck out of each one. You may find that one changed assumption is the difference between doing good and doing great.

The truth will set you free (statistics notwithstanding) Have you ever noticed how terrified we are of the truth? We're desperately afraid that the truth will reveal us as incompetent. Our situation really is hopeless. We really aren't as great as we pretend. So we cling to our beliefs no matter how hard the truth tries to break free.

Guess what, recording industry: Electronic downloads have changed the nature of your business. Start asking how you'll add value in a world where finding, packaging, and distributing sound is a commodity. Hey, ailing airlines: Oil's expensive, customers won't pay much, and you have huge capital costs. That hasn't stopped Southwest, Jet Blue, and others from making a fortune.

Nothing tells the truth like solid data and the guts to accept it. But it's difficult in practice. When was the last time you identified and collected data that contradicted your beliefs? If you found it, did you cheerfully change your belief, or did you explain away the data in a way that let you keep your comfortable pre-conceptions?

Here is a great exercise for your group or company. Have your general managers list your industry's Unquestioned Truths, which they then must prove with data. When a Fortune 500 CEO recently ran this exercise, Surprise! Some "absolute truths" were absolutely false. Now he can do business his competitors think is nuts. Analysts will say he's off his rocker, until his deeper knowledge of truth starts making a small fortune.

One caveat: Be picky about where you get your data. The Internet can be especially dangerous. The miracle of technology lets one bad piece of data spread far and wide, and eventually be accepted as truth.

Help! I've been framed! Not only may your data be disguised, but the whole problem itself may be disguised! It seems obvious: we're losing money, we need to cut costs. Not so fast! How you "frame" a situation—your explanation—has great power. Remember assumptions? Frames are big ol' collections of assumptions that you adopt lock, stock, and barrel. They become the map you use to explore a situation.

You're negotiating an acquisition. You're chomping at the bit. It's WAR!! Competition is all. The frame is combat!

Or, you're negotiating an acquisition. You're on a journey with the other party to find and split the value buried at the X. You still track your gains and gather intelligence, but the emphasis is on mutual outcomes, not "winning."

In a zero-sum one-time negotiation, a combat frame may be the best tool. But in a negotiation where you're free to develop creative solutions that can involve outside factors, the journey frame could work best. "Instead of $100K, why don't you pay $75K and let us share your booth at Comdex?"

Frames have great power! Presented with a potential solution to a problem and told, "This course of action has a 20 percent failure rate," few managers would approve. When that same solution is presented as having an 80 percent success rate, the same manager is going to consider it more deeply— even though a 20 percent failure rate means the same thing as an 80 percent success rate! The frame changes the decision.

Are you brave in the face of failure? Most people aren't. I recommend the responsibility frame: "What aren't we doing what we should?" The responsibility frame sends you searching for the elements of success.

The beauty is that no one frame is right, just different. The danger is when we adopt a frame without questioning it. You'll do best by trying several different frames for a situation and exploring each to extract the gems.

People are our greatest asset. Really Critical thinking isn't just about what happens in our own brains. When you're thinking critically in business, bring in other people! We don't consider the people impact in our decisions often enough. In fact, we pooh-pooh the "soft stuff." We feel safe with factors we can calculate on our HP-12B. But in truth, business is about people. Multibillion-dollar mergers fail due to culture clash.

Customers, suppliers, partners, employees. They're as much a part of your business as that sparkly new PC you use to play Solitaire. How will your decisions change their lives? Imagine being them and let your imagination change your decisions.

The Gallup organization estimates that 70 percent of America's workers are disengaged, and disengaged workers are dramatically less productive, creative, and committed than engaged workers. Yet few strategy meetings ask, "How can we engage our employees more?" It's as if we say people are our greatest asset—but we don't really believe it. If you want to improve your critical thinking, get other points of view.

A stitch in time saves nine Of course you know you should think about the consequences of your actions. But with information overload, quarterly earnings pressure, sixty-hour weeks…who has the time? We don't think much beyond the end of our nose.

But technology leverages the effects of our decisions throughout the organization and even across the globe. So good thinking demands that you consider consequences over many timeframes. Think out a month, a year, a decade, many decades. That tanning booth looks great when you consider how you'll look in a week, but is it worth looking like a leather overcoat ten years from now?

Long-term junkies like me are great at creating ten-year plans, but managing next month's cash flow? Not likely. Short-term junkies are more common; they're the ones who discount to make this quarter's numbers, while tanking the company in the process. You can do better by considering multiple timeframes.

I could go on, but there's plenty here to chew on. Think about a decision you're making, and pull in the rigor:

  • Make sure you understand the logic behind your decision.
  • Identify your assumptions and double-check them.
  • Collect the data that will support or disprove your assumptions.
  • Deliberately consider the situation from multiple frames.
  • Remember the people!
  • Think short and long term.

© 2005 by Stever Robbins. All rights reserved in all media.

Stever Robbins is founder and president of LeadershipDecisionworks, a consulting firm that helps companies develop leadership and organizational strategies to sustain growth and productivity over time. You can find more of his articles at http://LeadershipDecisionworks.com . He is the author of It Takes a Lot More than Attitude to Lead a Stellar Organization .

1. Yes, I know. I'm making a point. Congratulations; you got it. Color me subtle. Now go back and keep reading...

2. The Power of Full Engagement , by Tony Schwartz and Jim Loehr, New York: Simon & Schuster, 2003.

loading

Get expert insights delivered straight to your inbox.

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

9 Min Read | Oct 3, 2023

Ramsey Solutions

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.

Bullseye

You probably thought running a business sounded fun—until you realized it would actually run you. Discover the EntreLeadership System—the small-business road map that takes the guesswork out of growth.

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

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 Solutions

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.

To give you the best online experience, Ramsey Solutions uses cookies and other tracking technologies to collect information about you and your website experience, and shares it with our analytics and advertising partners as described in our Privacy Policy. By continuing to browse or by closing out of this message, you indicate your agreement.

critical thinking business decisions

10 Best Critical Thinking Tips from Business Experts

  • POSTED ON June 19, 2023
  • by Marcjean Yutuc

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!

Marcjean Yutuc

Marcjean Yutuc

Browse all categories, related posts, how to become proficient with microsoft office, 9 emerging trends in corporate training 2024, build your own large language model (llm) from scratch, 25+ best online courses for career development with certificates [2023], how hard is it to make an app plus 5 things to do first.

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 4,000+ online video courses today..

critical thinking business decisions

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

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.

Subscribe For Success!

Get fresh content every week to upgrade your skills today!

critical thinking business decisions

  • AI Community
  • L&D On-Demand

Critical Thinking in Decision Making: A Leader’s Guide

critical thinking business decisions

Lauren Goff

Critical Thinking in Decision Making: A Leader’s Guide

In today’s fast-paced and ever-changing business landscape, leadership decisions carry a significant weight. The ability to make effective decisions is a fundamental skill that every leader should possess. However, the key to making informed and successful decisions lies in critical thinking. Critical thinking acts as a compass, guiding leaders towards sound choices that propel their organizations forward. Let’s delve into the importance of critical thinking in leadership and how it can shape the future of decision making.

Understanding the Importance of Critical Thinking in Leadership

At its core, critical thinking refers to the ability to analyze and evaluate information objectively. It involves actively engaging with ideas, questioning assumptions, and weighing evidence. In the context of leadership , critical thinking empowers leaders to go beyond surface-level observations and delve deeper into the complexities of a situation.

By thinking critically, leaders become adept at identifying biases, recognizing potential pitfalls, and uncovering hidden opportunities. They can weigh multiple perspectives and consider both short-term and long-term implications. This ability sets them apart from their peers and enables them to make informed decisions that lead to sustainable success.

Leaders who possess strong critical thinking skills are able to navigate through the ever-changing landscape of business with confidence and agility. They are not afraid to challenge the status quo and explore alternative solutions. This mindset fosters innovation and drives continuous improvement within organizations.

Defining Critical Thinking

Critical thinking is not a mere buzzword but an integral part of effective decision making. It involves the skillful utilization of logic, reasoning, and data analysis to comprehend complex problems and arrive at carefully reasoned conclusions. A critical thinker is open-minded, intellectually curious, and willing to challenge prevailing assumptions.

Furthermore, critical thinking goes beyond the realm of problem-solving . It encompasses the ability to think creatively and adapt to new situations. Critical thinkers are flexible and adaptable, able to navigate through ambiguity and uncertainty with ease. They are comfortable with change and see it as an opportunity for growth and development.

The Role of Critical Thinking in Effective Decision Making

When it comes to decision making , critical thinking acts as a guiding force, ensuring that leaders make choices based on solid evidence and well-founded reasoning. It enables leaders to assess the risks and rewards associated with different options, providing them with the confidence to take calculated risks.

Moreover, critical thinking helps leaders avoid succumbing to cognitive biases that can cloud judgment. By considering various perspectives, critically-thinking leaders can make inclusive decisions that harness the collective intelligence of their teams.

Effective decision making requires leaders to consider not only the immediate outcomes but also the long-term consequences. Critical thinking allows leaders to anticipate potential challenges and devise strategies to overcome them. It encourages proactive thinking and fosters a culture of continuous learning and improvement.

The #1 place for Learning Leaders to learn from each other.

Get the data & knowledge you need to succeed in the era of AI. We're an invite-only community for L&D leaders to learn from each other through expert-led roundtables, our active forum, and data-driven resources.

In conclusion, critical thinking is a vital skill for leaders in today’s complex and fast-paced world. It enables leaders to make informed decisions, navigate through uncertainty, and drive sustainable success. By embracing critical thinking, leaders can unlock their full potential and inspire their teams to achieve greatness.

The Connection Between Leadership and Critical Thinking

The relationship between leadership and critical thinking is symbiotic. Critical thinking skills enhance leadership abilities, while strong leadership fosters a culture that values and encourages critical thinking.

How Critical Thinking Enhances Leadership Skills

By honing their critical thinking abilities, leaders become more adaptable and resilient. They can navigate through uncertainty and ambiguity , recognizing patterns and anticipating potential outcomes. Critical thinking equips leaders with the tools to tackle complex problems, devise innovative solutions, and inspire their teams.

The Impact of Decision Making on Leadership Success

Decisions made by leaders can shape the trajectory of their careers and organizations. Effective decision making sets a leader apart, earning them the respect and trust of their teams. Conversely, poor decision making can result in missed opportunities, eroded confidence, and diminished credibility. Critical thinking acts as an armor, safeguarding leaders from impulsive and ill-informed choices.

Developing Critical Thinking Skills for Decision Making

Critical thinking is not an innate skill but a muscle that can be developed and strengthened over time. There are several strategies that leaders can employ to enhance their critical thinking abilities and become more acutely aware of their decision-making processes.

Strategies for Enhancing Critical Thinking Abilities

One effective strategy is to actively seek out diverse perspectives. By surrounding themselves with individuals from different backgrounds and experiences, leaders gain access to a rich tapestry of ideas and insights. This diversity of thought challenges cognitive biases and encourages critical thinking.

Additionally, leaders can engage in continuous learning and self-reflection. By staying curious and open-minded, they can expand their knowledge base and refine their critical thinking skills. Seeking feedback from trusted colleagues can further enhance their ability to analyze situations objectively and make sound decisions.

Overcoming Barriers to Critical Thinking in Decision Making

There are common barriers that impede effective critical thinking. These can include time constraints, confirmation bias, and fear of making mistakes. Leaders must proactively identify and address these barriers to foster an environment that nurtures critical thinking.

By allocating dedicated time for reflection, leaders can give themselves the space to think critically and deeply about the challenges they face. Encouraging a culture of open dialogue and embracing constructive criticism helps minimize confirmation bias and allows alternative viewpoints to be heard.

Applying Critical Thinking in Leadership Decisions

Understanding the theory behind critical thinking is essential, but it is equally vital to know how to apply it in practical scenarios. Leaders can follow several practical steps to incorporate critical thinking into their decision-making processes.

Practical Steps for Incorporating Critical Thinking into Decision Making

First, leaders should define the problem or decision at hand clearly. They should strive to gather all the relevant information, considering both quantitative and qualitative data. They can then analyze the data, weigh the pros and cons of different options, and consider the potential impact on various stakeholders.

Next, leaders should engage their teams, encouraging them to think critically and contribute their perspectives. By fostering a culture that values diverse viewpoints, leaders can tap into the collective wisdom of their organizations and make more informed decisions .

Measuring the Effectiveness of Critical Thinking in Leadership Decisions

Measuring the effectiveness of critical thinking in leadership decisions can be challenging but not impossible. By tracking key performance indicators, leaders can assess the outcomes of their decisions and identify areas for improvement.

Additionally, seeking feedback from team members and stakeholders can provide valuable insights into the impact of critical thinking on decision making. Continuous self-reflection and learning also play a crucial role in measuring the effectiveness of critical thinking in leadership decisions.

The Future of Leadership: Emphasizing Critical Thinking

The future of leadership is intrinsically linked to the ability to think critically. As the business landscape continues to evolve, leaders must adapt and develop their critical thinking skills to stay ahead.

The Evolving Landscape of Leadership and Decision Making

Rapid technological advancements, changing consumer demands, and global challenges have transformed the requirements of effective leadership. Leaders must navigate through a sea of information, make sense of complex data, and anticipate future trends. Critical thinking is the compass that can guide them through this unpredictable landscape.

Preparing for a Future Where Critical Thinking is Paramount

To thrive in a future where critical thinking is paramount, leaders must prioritize the development of this skill both for themselves and their teams. They must create an environment that encourages critical thinking, fosters continuous learning , and rewards intellectual curiosity.

In conclusion, critical thinking is the cornerstone of effective decision making in leadership. It equips leaders with the tools to analyze complex problems, make informed choices, and navigate through uncertainty. By actively developing and utilizing critical thinking skills , leaders can drive their organizations towards success. Invest in critical thinking today, and build a strong foundation for tomorrow.

When it comes to developing critical thinking skills and enhancing leadership abilities, Learnexus is an invaluable resource. With a vast library of courses and expert-led content, Learnexus provides leaders with the knowledge and tools they need to cultivate critical thinking skills . By leveraging Learnexus , leaders can take charge of their professional growth and make informed, strategic decisions.

Find the best expert for your next Project!

Related blog posts.

What to Know About Augmented Reality for eLearning

What to Know About Augmented Reality for eLearning

Augmented reality (AR) is transforming the landscape of eLearning, offering unique and interactive ways to engage with educational content. ...

Guide to Hiring a Skilled Systems Trainer in Ft Lauderdale for Your Training Needs

Guide to Hiring a Skilled Systems Trainer in Ft Lauderdale for Your Training Needs

Discover the importance of hiring a skilled systems trainer in Ft Lauderdale to keep your business up to date with the latest technology. Le...

Finding the Perfect Translation/Localization Specialist for Your Hospitality Training Needs

Finding the Perfect Translation/Localization Specialist for Your Hospitality Training Needs

Discover how a Translation/Localization Specialist with expertise in the hospitality industry can greatly enhance effective communication. U...

Join the #1 place for Learning Leaders to learn from each other. Get the data & knowledge you need to succeed in the era of AI.

Join as a client or expert.

We’ll help you get started

Hire an Expert I’m a client, hiring for a project

Find a job i’m a training expert, looking for work, get your free content.

Enter your info below and join us in making learning the ultimate priority 🚀

Join as an employer or L&D expert

critical thinking business decisions

I'm an employer, hiring for a project

critical thinking business decisions

I'm an L&D expert, looking for work

Already have an account? Login

  • Starting a Business
  • Growing a Business
  • Small Business Guide
  • Business News
  • Science & Technology
  • Money & Finance
  • For Subscribers
  • Write for Entrepreneur
  • Tips White Papers
  • Entrepreneur Store
  • 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

How to Improve Your Critical Thinking Skills and Make Better Business Decisions Three steps to help you make smarter decisions.

By Nadia Goodman Apr 29, 2013

Opinions expressed by Entrepreneur contributors are their own.

As an entrepreneur, you make decisions every day that affect the success of your products, the loyalty of your employees, and the overall health of your business. To make the best decisions possible, you need to think critically and quickly to pick out any flaws in your processes that might harm your business.

When you think through a problem, your thought process is naturally colored by biases, such as your point of view and your assumptions about the situation. Each of those biases affects your reasoning. If you let your biases drive your thought process and overlook blind spots in your logic, you'll unwittingly make decisions filled with holes.

"Critical thinking is a way to intervene in your thought process," says Linda Elder, an educational psychologist and president of the Foundation for Critical Thinking based in Tomales, Calif. "It's a way to routinely and consistently seek problems in your thinking."

Related: How to Sharpen Your Decision-Making Skills

Try these three strategies to help you think through a problem effectively.

1. Identify your purpose. Every time you face a decision, there is a purpose attached to that choice, or a goal that the decision will help you achieve. For example, if you are expanding into a new market, your purpose might be to choose the one with the greatest growth opportunity.

Once you identify your purpose, it should inform every step of your decision process. First make sure that you're clear about what it is, articulate it for yourself and your team and make use it as a starting point, not an end point. "With critical thinking, it is essential to go beyond the basic skills like gathering information," Elder says.

2. Examine your biases. When you face a problem, it's common to view it from only your perspective and to overlook how your clients, customers, or co-workers might see it. Considering the situation from only one point of view, however, can lead to products that flop or unnecessary spending. The goal of critical thinking is to bring those biases to light so they don't obstruct your decisions.

To do that, articulate your own viewpoint. Ask yourself, what do I believe about this situation? What is important to me? Next, look for any assumptions you might be making about others' thoughts or behaviors. "Irrational thought is often unconscious," Elder says. "When we articulate our thoughts, we have a better chance to detect distorted thinking."

3. Consider the implications of your options. Every choice has consequences, and you can improve your decision-making by anticipating what those might be. To do that, approach the problem from many different viewpoints. Imagine yourself as each of the stakeholders, and consider how they might feel and act in response to each option.

If you do make a choice that backfires by upsetting clients or hurting sales, take a deeper look at which implications you failed to think through, and why. "Common reasons are that people were intellectually lazy, didn't want to consider a given viewpoint," Elder says. Knowing what you missed and why will help you avoid that issue in the future.

Related: A Secret to Creative Problem Solving

Nadia Goodman is a freelance writer in Brooklyn, NY. She is a former editor at YouBeauty.com, where she wrote about the psychology of health and beauty. She earned a B.A. in English from Northwestern University and an M.A. in Clinical Psychology from Columbia University. Visit her website, nadiagoodman.com .

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

Editor's Pick Red Arrow

  • Lock How to Design a Work Session That Tricks Your Brain Into Peak Performance, According to a Neuroscientist
  • She Launched Her Black-Owned Beauty Brand with $1,500 in Her Pockets — Now Her Products Are on Sephora's Shelves
  • No One Explained a 401(k) Until He Reached the NFL. So He Started Putting His Money to Work — and Helping Others Do the Same .
  • Lock How to Land Your Next Job Without Sending a Single Resume
  • Kevin O'Leary Says This Is the One Skill He Looks For in a Leader — But It's 'Almost Impossible to Find'
  • Food Franchisees Are Shifting to Non-Food Investments — And You Should, Too

Most Popular Red Arrow

3 key strategies to ground yourself when you start questioning your 'why'.

Change is certain. But if your "why" changes, you can feel off balance. Here are three strategies to help you get grounded.

How to Start a Multi-Million Dollar Company, According to an IBM Engineer Turned Founder

Leah Solivan took her company from idea to Ikea acquisition.

The Largest Franchise Operator in the U.S. Owns 2,800 Locations — And He Just Added 83 Wendy's to His Portfolio

Greg Flynn of The Flynn Group already operates restaurants under brands including Applebee's, Arby's, Taco Bell, Pizza Hut and Wendy's.

This Former Model Used Her Personal Savings to Start a Thrifty Side Hustle — Then Taylor Swift Became a Repeat Patron: 'People Really Responded'

Christy Dawn, founder of her namesake regenerative fashion brand, says she's always been on a mission "to create beauty in everything I do."

I Built a Successful Business in a Niche Industry — Here's My Advice for Entrepreneurs Trying to Do the Same

Creating a trash-bin cleaning business from scratch was a labor of love and came with some unexpected surprises.

Alarming New Data: 75% of Workers Say AI Is Hurting Productivity. Here's Why and What to Do About It.

Four simple future-orientated solutions for leveraging AI to its full capacity without experiencing burnout.

Successfully copied link

critical thinking business decisions

More From Forbes

The power of critical thinking: enhancing decision-making and problem-solving.

Forbes Coaches Council

  • Share to Facebook
  • Share to Twitter
  • Share to Linkedin

Dr. Ron Young, Founder and Board Chair of Trove, Inc . Ron specializes in psychological coaching & transition consulting.

Critical thinking is a fundamental cognitive process that enables individuals to objectively analyze, evaluate and interpret information to make informed decisions and solve complex problems. It involves employing reasoning and logic, questioning assumptions, recognizing biases and considering multiple perspectives. It requires self-monitored, self-directed, self-disciplined and self-corrective thinking. Critical thinking is essential in a world of information and diverse opinions. It helps us see things more clearly and avoid being misled or deceived.

Importance Of Critical Thinking

Critical thinking is crucial in various aspects of life, including education, professional endeavors and personal decision-making. In academic settings, it allows students to comprehend and engage with complex subjects while discerning valid arguments from fallacious ones. In the workplace, critical thinking empowers individuals to analyze problems, devise creative solutions and make informed judgments. In everyday life, it helps individuals navigate an increasingly complex world by making sound choices and avoiding cognitive biases. It is our primary defense against misleading or "spun" information.

Benefits Of Critical Thinking

There are many benefits of critical thinking.

Enhanced Decision-Making

Critical thinking helps us trust our gut feelings and think independently. It enables individuals to make logical and well-reasoned decisions based on evidence and objective analysis. It encourages the consideration of all relevant factors and the evaluation of potential consequences, leading to more informed choices.

Effective Problem-Solving

Critical thinking facilitates the identification of underlying issues, the generation of innovative solutions and the evaluation of their viability. It encourages individuals to approach problems from different angles and consider various perspectives, increasing the likelihood of finding effective resolutions.

Reduction Of Cognitive Biases

Critical thinking supports self-reflection. It helps individuals recognize and challenge cognitive biases that hinder clear judgment. Individuals can better overcome confirmation bias, groupthink and the availability heuristic (judging the likelihood of an event based on recall of similar events) by understanding and questioning their assumptions and beliefs. It requires a commitment to overcoming the tendency to see the world from a narrow, self-centered perspective.

Enhanced Communication Skills

Practicing critical thinking fosters effective communication by enabling individuals to articulate and defend their ideas with logical reasoning and evidence. It encourages active listening, empathy and the ability to evaluate and respond to counterarguments, leading to more constructive and meaningful discussions.

More United Citizens

Using critical thinking enables citizens to see the whole picture by better protecting against biases and propaganda. It reduces partisanship and a “we/they” mentality.

Cultivating Critical Thinking

How can you cultivate critical thinking?

Be curious and inquisitive.

Foster a mindset of curiosity and an eagerness to explore and understand the world. Talk with people from different backgrounds, cultures, political affiliations or religions. Ask probing questions, seek new perspectives and engage in active learning. Learn from people who hold different viewpoints.

Develop analytical skills.

You can do this by learning to break down complex problems into manageable parts, recognize patterns and identify cause-and-effect relationships. Remember, not all opinions are equal, and some are flat-out wrong.

Evaluate information.

Develop skills to evaluate the credibility and reliability of information sources. Be aware of bias, assess evidence and differentiate between fact and opinion. Guard against "swallowing information whole" or believing that "If it's on the internet, it must be true."

Practice reflection.

Engage in reflective thinking by evaluating your thoughts, beliefs and assumptions. Consider alternative viewpoints, and be open to changing your perspective based on new information.

Embrace intellectual humility.

Be humble and aware that you could be wrong. Knowledge is an ongoing process; be open to admitting mistakes or gaps in understanding. Embrace a growth mindset that values continuous learning and improvement.

Develop your sense of belonging.

The third tier in Maslow's hierarchy of needs is a sense of belonging. One aspect of belonging is connection. All humans have this need. Without critical thinking, we are vulnerable to making our group's beliefs our own rather than evaluating which beliefs align with our values.

Align your view and your values.

Rather than defining yourself by a particular view, ask whether a different view aligns with your values. When we identify ourselves by the beliefs of our reference group (religious, political, etc.), we look for ways to justify our ideas. In doing so, we deny ourselves access to critical thinking.

Evidence Of Critical Thinking

When you practice critical thinking, it will be evident in several areas:

Evidence-Based Decision-Making

Rely on facts rather than emotions or personal biases. Follow five distinct steps, called the five A’s : ask, access, appraise, apply and audit. Gather relevant information, evaluate the evidence objectively and consider different perspectives before making decisions. Then reevaluate them as you learn new information.

Problem-Solving

Approach problems systematically by defining the issue, gathering relevant data, brainstorming potential solutions and evaluating feasibility. Engage in collaborative problem-solving to benefit from diverse perspectives. Open-mindedly consider alternative systems of thought. Recognize assumptions, implications and practical consequences, then adjust as needed.

Effective Communication

Solve complex problems by clearly and effectively communicating with others. Utilize critical thinking skills to articulate your thoughts clearly, listen actively and engage in respectful and constructive dialogue. Challenge ideas through logical arguments and evidence rather than resorting to personal attacks. Respecting people with different views does not mean you agree with their opinions. Evaluate, formulate and communicate questions with clarity and precision.

Continuous Learning

Apply critical thinking to ongoing personal and professional development. Seek opportunities for further education, engage in intellectual discourse and actively challenge your beliefs and assumptions.

Using Critical Thinking

Critical thinking is a powerful cognitive tool that empowers individuals to navigate the complexities of the modern world. Critical thinking enhances decision-making, problem-solving and communication abilities by fostering logical reasoning, analytical skills and an open mindset. It enables individuals to overcome cognitive biases, evaluate information effectively and make informed choices. Cultivating and applying critical thinking skills benefits individuals and contributes to a more thoughtful and rational society. Embracing critical thinking is essential for fostering intellectual growth, facilitating progress and addressing the challenges of the 21st century.

Forbes Coaches Council is an invitation-only community for leading business and career coaches. Do I qualify?

Ron Young

  • Editorial Standards
  • Reprints & Permissions
  • 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

The foreign entrepreneur’s guide to securing a japan investor visa.

 width=

The Trap of Tiara Syndrome: How to Advocate for Yourself

 width=

360 Marketing: Where Traditional and Digital Meet

 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

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  - What is Critical Thinking?

Critical thinking and decision-making  -, what is critical thinking, critical thinking and decision-making what is critical thinking.

GCFLearnFree Logo

Critical Thinking and Decision-Making: What is Critical Thinking?

Lesson 1: what is critical thinking, what is critical thinking.

Critical thinking is a term that gets thrown around a lot. You've probably heard it used often throughout the years whether it was in school, at work, or in everyday conversation. But when you stop to think about it, what exactly is critical thinking and how do you do it ?

Watch the video below to learn more about critical thinking.

Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions . It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better.

illustration of the terms logic, reasoning, and creativity

This may sound like a pretty broad definition, and that's because critical thinking is a broad skill that can be applied to so many different situations. You can use it to prepare for a job interview, manage your time better, make decisions about purchasing things, and so much more.

The process

illustration of "thoughts" inside a human brain, with several being connected and "analyzed"

As humans, we are constantly thinking . It's something we can't turn off. But not all of it is critical thinking. No one thinks critically 100% of the time... that would be pretty exhausting! Instead, it's an intentional process , something that we consciously use when we're presented with difficult problems or important decisions.

Improving your critical thinking

illustration of the questions "What do I currently know?" and "How do I know this?"

In order to become a better critical thinker, it's important to ask questions when you're presented with a problem or decision, before jumping to any conclusions. You can start with simple ones like What do I currently know? and How do I know this? These can help to give you a better idea of what you're working with and, in some cases, simplify more complex issues.  

Real-world applications

illustration of a hand holding a smartphone displaying an article that reads, "Study: Cats are better than dogs"

Let's take a look at how we can use critical thinking to evaluate online information . Say a friend of yours posts a news article on social media and you're drawn to its headline. If you were to use your everyday automatic thinking, you might accept it as fact and move on. But if you were thinking critically, you would first analyze the available information and ask some questions :

  • What's the source of this article?
  • Is the headline potentially misleading?
  • What are my friend's general beliefs?
  • Do their beliefs inform why they might have shared this?

illustration of "Super Cat Blog" and "According to survery of cat owners" being highlighted from an article on a smartphone

After analyzing all of this information, you can draw a conclusion about whether or not you think the article is trustworthy.

Critical thinking has a wide range of real-world applications . It can help you to make better decisions, become more hireable, and generally better understand the world around you.

illustration of a lightbulb, a briefcase, and the world

/en/problem-solving-and-decision-making/why-is-it-so-hard-to-make-decisions/content/

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

How to Make Great Decisions, Quickly

  • Martin G. Moore

critical thinking business decisions

It’s a skill that will set you apart.

As a new leader, learning to make good decisions without hesitation and procrastination is a capability that can set you apart from your peers. While others vacillate on tricky choices, your team could be hitting deadlines and producing the type of results that deliver true value. That’s something that will get you — and them — noticed. Here are a few of a great decision:

  • Great decisions are shaped by consideration of many different viewpoints. This doesn’t mean you should seek out everyone’s opinion. The right people with the relevant expertise need to clearly articulate their views to help you broaden your perspective and make the best choice.
  • Great decisions are made as close as possible to the action. Remember that the most powerful people at your company are rarely on the ground doing the hands-on work. Seek input and guidance from team members who are closest to the action.
  • Great decisions address the root cause, not just the symptoms. Although you may need to urgently address the symptoms, once this is done you should always develop a plan to fix the root cause, or else the problem is likely to repeat itself.
  • Great decisions balance short-term and long-term value. Finding the right balance between short-term and long-term risks and considerations is key to unlocking true value.
  • Great decisions are timely. If you consider all of the elements listed above, then it’s simply a matter of addressing each one with a heightened sense of urgency.

Like many young leaders, early in my career, I thought a great decision was one that attracted widespread approval. When my colleagues smiled and nodded their collective heads, it reinforced (in my mind, at least) that I was an excellent decision maker.

critical thinking business decisions

  • MM Martin G. Moore is the founder of Your CEO Mentor and author of No Bullsh!t Leadership and host of the No Bullsh!t Leadership podcast. His purpose is to improve the quality of leaders globally through practical, real world leadership content. For more information, please visit, www.martingmoore.com.

Partner Center

Moving People to Action

How to Take Better Business Decisions: 50 Great Questions for Critical Thinking

A leader should be interested in developing 2 competencies in the people within their organisation:

  • Good Decision Making (to take good choices about how to use the resources of the organisation to achieve strategic plans)
  • Influencing Skills (because if they cannot influence their peers, people will have to involve you every time…)

If your team doesn’t have #1 they are taking poor decisions.  If your team doesn’t have #2 they cannot execute without your support (you will be sucked in to every initiative).

In order to take Good Decisions, you need to ask great questions.  

Most people ask few questions and rapidly jump to a solution.  Great decision makers ask many questions and get many perspectives before they commit to a decision.  Here’s a set of great questions…

This set of questions was inspired by the Global Digital Citizen Foundation and by Vistage Issue Processing where we help leaders develop the ability to ask great questions to help leaders think more deeply and see new perspectives, clarify objectives and take disciplined effective action.

The Ultimate Guide to Great Questions for Critical Thinking

Divided into who, what, where, when, why, how…

  • …benefits from this?
  • …is this harmful to?
  • …makes decisions about this?
  • …is most directly affected?
  • …have you also heard discuss this?
  • …would be the best person to consult?
  • …else has overcome a similar challenge?
  • …will be the key people in this?
  • …deserves recognition for this?
  • …is the impact on you?
  • …is the impact on those close to you?
  • …are the strengths/weaknesses?
  • …is another perspective?
  • …is another alternative?
  • …would be a counter-argument?
  • …is the best/worst case scenario?
  • …is the most/least important?
  • …can we do to make a positive change?
  • …is getting in the way of taking action?
  • …else would we see this problem showing up in your life?
  • …else have you overcome this type of challenge?
  • …are there similar situations?
  • …is there the most need for this?
  • …would this be the greatest problem?
  • …can we get more information?
  • …do we go for help with this?
  • …will this idea take us?
  • …are the areas for improvement?
  • …is this acceptable/unacceptable?
  • …would this benefit you?
  • …would this cause a problem?
  • …is the best time to take action?
  • …will we know we’ve succeeded?
  • …has this played a part in your past?
  • …can we expect this to change?
  • …should we ask for help with this?
  • …is this a problem/challenge?
  • …is it relevant to your goals?
  • …is this the best/worst scenario?
  • …are people influenced by this?
  • …should people know about this?
  • …has it been this way for so long?
  • …is there a need for this today?
  • …is this similar to _____?
  • …does this disrupt things?
  • …do we know the truth about this?
  • …does this benefit you/us/others?
  • …does this harm you/us/others?
  • …do we see this playing out in the future?
  • …can we help you?

I Keep Six Honest Serving Men Rudyard Kipling I KEEP six honest serving-men  (They taught me all I knew); Their names are What and Why and When   And How and Where and Who. I send them over land and sea,  I send them east and west; But after they have worked for me,   I  give them all a rest.

I  let them rest from nine till five,  For I am busy then, As well as breakfast, lunch, and tea,  For they are hungry men. But different folk have different views;  I know a person small— She keeps ten million serving-men, Who get no rest at all!

She sends’em abroad on her own affairs,  From the second she opens her eyes— One million Hows, two million Wheres, And seven million Whys!

The Elephant’s Child 

More Great Questions for Vistage Groups

  • https://marktaylor.nyc/2010/12/05/are-you-processing-vistage-issues-with-integrity/
  • https://blog.vistage.co.uk/what-is-the-vistage-issue-processing-framework-and-why-does-it-work

Great Questions for Teaching & the Learning Process

  • https://globaldigitalcitizen.org/questions-essential-fluency-development

Social Media

Privacy overview, discover more from moving people to action.

Subscribe now to keep reading and get access to the full archive.

Type your email…

Continue reading

COMMENTS

  1. Why Your Business Needs Critical Thinking

    Critical thinking is an essential skill that enables individuals to analyze, evaluate, and synthesize information to make informed decisions. In today's fast-paced, complex, and dynamic work ...

  2. Critical Thinking and the Urgency Trap

    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.

  3. Why Critical Thinking Matters in Your Business

    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 ...

  4. Why Is Critical Thinking Important for Business Growth?

    Improved Decision-Making and Risk Management. 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.

  5. Improve Your Critical Thinking Skills

    Third, seek out fresh perspectives. It's tempting to rely on your inner circle to help you think through these questions, but that won't be productive if they all look and think like you. Get ...

  6. 3 Simple Habits to Improve Your Critical Thinking

    Summary. Too many business leaders are simply not reasoning through pressing issues, and it's hurting their organizations. The good news is that critical thinking is a learned behavior. There ...

  7. How Leaders Should Think Critically

    How Leaders Should Think Critically. If you want to succeed in 21st Century business you need to become a critical thinker. Roger Martin of the Rotman School of Management figured this out a ...

  8. The Path to Critical Thinking

    Really. Critical thinking isn't just about what happens in our own brains. When you're thinking critically in business, bring in other people! We don't consider the people impact in our decisions often enough. In fact, we pooh-pooh the "soft stuff." We feel safe with factors we can calculate on our HP-12B.

  9. Critical Thinking

    Critical thinking is the discipline of rigorously and skillfully using information, experience, observation, and reasoning to guide your decisions, actions, and beliefs. You'll need to actively question every step of your thinking process to do it well. Collecting, analyzing and evaluating information is an important skill in life, and a highly ...

  10. 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.

  11. 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.

  12. 10 Best Critical Thinking Tips from Business Experts

    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.

  13. Critical Thinking in Decision Making: A Leader's Guide

    Effective decision making sets a leader apart, earning them the respect and trust of their teams. Conversely, poor decision making can result in missed opportunities, eroded confidence, and diminished credibility. Critical thinking acts as an armor, safeguarding leaders from impulsive and ill-informed choices.

  14. PDF Communication † Critical Thinking † Creativity † Collaboration

    In the past, critical thinking has been thought of as an academic skill, tied to such subjects as logic and rhetoric. While there is a lot of value in this approach, it doesn't directly address the types of business decisions that need to be addressed every day: COMMUNICATION † CRITICAL THINKING † CREATIVITY † COLLABORATION THE 4C s

  15. 3 Ways to Build Critical-Thinking Skills

    Bouygues outlines 3 key components of critical thinking: questioning your assumptions, reasoning through logic, and diversifying your thought process to avoid selective thinking. You'll learn ...

  16. How to Improve Your Critical Thinking Skills and Make Better Business

    Once you identify your purpose, it should inform every step of your decision process. First make sure that you're clear about what it is, articulate it for yourself and your team and make use it ...

  17. Seven Critical Thinking Tactics High-Performing Leaders Use To ...

    Critical thinking allows leaders at every level to evaluate their decision-making and how these decisions ultimately impact results. What made a leader successful in the past is often not what ...

  18. The Power Of Critical Thinking: Enhancing Decision-Making And Problem

    Using Critical Thinking. Critical thinking is a powerful cognitive tool that empowers individuals to navigate the complexities of the modern world. Critical thinking enhances decision-making ...

  19. The Best Critical Thinking Questions in Business

    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. ... 3 Reasons Employers Value Critical Thinking in Business. Critical thinking is a great mental exercise ...

  20. Critical Thinking Is About Asking Better Questions

    Summary. Critical thinking is the ability to analyze and effectively break down an issue in order to make a decision or find a solution. At the heart of critical thinking is the ability to ...

  21. Critical Thinking and Decision-Making: What is Critical Thinking?

    Definition. Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions. It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better. This may sound like a pretty broad definition, and that's because critical ...

  22. How to Make Great Decisions, Quickly

    Great decisions are shaped by consideration of many different viewpoints. This doesn't mean you should seek out everyone's opinion. The right people with the relevant expertise need to clearly ...

  23. How to Take Better Business Decisions: 50 Great Questions for Critical

    A leader should be interested in developing 2 competencies in the people within their organisation: Good Decision Making (to take good choices about how to use the resources of the organisation to achieve strategic plans); Influencing Skills (because if they cannot influence their peers, people will have to involve you every time…); If your team doesn't have #1 they are taking poor decisions.