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Why Critical Thinking Matters in Your Business

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Table of Contents

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

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

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

What is critical thinking?

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

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

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

Why is critical thinking essential in the workplace?

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

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

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

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

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

What are critical thinking skills?

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

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

What are the benefits of critical thinking in the workplace?

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

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

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

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

How do you teach critical thinking in the workplace?

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

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

How do you identify successful critical thinking?

Successful critical thinking happens during a crisis, not after.

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

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

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

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

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

Critical thinking is the key to your business success

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

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

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

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

9 Min Read | Oct 3, 2023

Ramsey

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

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

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

What Is Critical Thinking?

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

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

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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.

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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.

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About the author

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

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How to build your critical thinking skills in 7 steps (with examples)

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Critical thinking is, well, critical. By building these skills, you improve your ability to analyze information and come to the best decision possible. In this article, we cover the basics of critical thinking, as well as the seven steps you can use to implement the full critical thinking process. 

Critical thinking comes from asking the right questions to come to the best conclusion possible. Strong critical thinkers analyze information from a variety of viewpoints in order to identify the best course of action.

Don’t worry if you don’t think you have strong critical thinking abilities. In this article, we’ll help you build a foundation for critical thinking so you can absorb, analyze, and make informed decisions. 

What is critical thinking? 

Critical thinking is the ability to collect and analyze information to come to a conclusion. Being able to think critically is important in virtually every industry and applicable across a wide range of positions. That’s because critical thinking isn’t subject-specific—rather, it’s your ability to parse through information, data, statistics, and other details in order to identify a satisfactory solution. 

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Top 8 critical thinking skills

Like most soft skills, critical thinking isn’t something you can take a class to learn. Rather, this skill consists of a variety of interpersonal and analytical skills. Developing critical thinking is more about learning to embrace open-mindedness and bringing analytical thinking to your problem framing process. 

In no particular order, the eight most important critical thinking skills are:

Analytical thinking: Part of critical thinking is evaluating data from multiple sources in order to come to the best conclusions. Analytical thinking allows people to reject bias and strive to gather and consume information to come to the best conclusion. 

Open-mindedness: This critical thinking skill helps you analyze and process information to come to an unbiased conclusion. Part of the critical thinking process is letting your personal biases go and coming to a conclusion based on all of the information. 

Problem solving : Because critical thinking emphasizes coming to the best conclusion based on all of the available information, it’s a key part of problem solving. When used correctly, critical thinking helps you solve any problem—from a workplace challenge to difficulties in everyday life. 

Self-regulation: Self-regulation refers to the ability to regulate your thoughts and set aside any personal biases to come to the best conclusion. In order to be an effective critical thinker, you need to question the information you have and the decisions you favor—only then can you come to the best conclusion. 

Observation: Observation skills help critical thinkers look for things beyond face value. To be a critical thinker you need to embrace multiple points of view, and you can use observation skills to identify potential problems.

Interpretation: Not all data is made equal—and critical thinkers know this. In addition to gathering information, it’s important to evaluate which information is important and relevant to your situation. That way, you can draw the best conclusions from the data you’ve collected. 

Evaluation: When you attempt to answer a hard question, there is rarely an obvious answer. Even though critical thinking emphasizes putting your biases aside, you need to be able to confidently make a decision based on the data you have available. 

Communication: Once a decision has been made, you also need to share this decision with other stakeholders. Effective workplace communication includes presenting evidence and supporting your conclusion—especially if there are a variety of different possible solutions. 

7 steps to critical thinking

Critical thinking is a skill that you can build by following these seven steps. The seven steps to critical thinking help you ensure you’re approaching a problem from the right angle, considering every alternative, and coming to an unbiased conclusion.

 First things first: When to use the 7 step critical thinking process

There’s a lot that goes into the full critical thinking process, and not every decision needs to be this thought out. Sometimes, it’s enough to put aside bias and approach a process logically. In other, more complex cases, the best way to identify the ideal outcome is to go through the entire critical thinking process. 

The seven-step critical thinking process is useful for complex decisions in areas you are less familiar with. Alternatively, the seven critical thinking steps can help you look at a problem you’re familiar with from a different angle, without any bias. 

If you need to make a less complex decision, consider another problem solving strategy instead. Decision matrices are a great way to identify the best option between different choices. Check out our article on 7 steps to creating a decision matrix .

1. Identify the problem

Before you put those critical thinking skills to work, you first need to identify the problem you’re solving. This step includes taking a look at the problem from a few different perspectives and asking questions like: 

What’s happening? 

Why is this happening? 

What assumptions am I making? 

At first glance, how do I think we can solve this problem? 

A big part of developing your critical thinking skills is learning how to come to unbiased conclusions. In order to do that, you first need to acknowledge the biases that you currently have. Does someone on your team think they know the answer? Are you making assumptions that aren’t necessarily true? Identifying these details helps you later on in the process. 

2. Research

At this point, you likely have a general idea of the problem—but in order to come up with the best solution, you need to dig deeper. 

During the research process, collect information relating to the problem, including data, statistics, historical project information, team input, and more. Make sure you gather information from a variety of sources, especially if those sources go against your personal ideas about what the problem is or how to solve it.

Gathering varied information is essential for your ability to apply the critical thinking process. If you don’t get enough information, your ability to make a final decision will be skewed. Remember that critical thinking is about helping you identify the objective best conclusion. You aren’t going with your gut—you’re doing research to find the best option

3. Determine data relevance

Just as it’s important to gather a variety of information, it is also important to determine how relevant the different information sources are. After all, just because there is data doesn’t mean it’s relevant. 

Once you’ve gathered all of the information, sift through the noise and identify what information is relevant and what information isn’t. Synthesizing all of this information and establishing significance helps you weigh different data sources and come to the best conclusion later on in the critical thinking process. 

To determine data relevance, ask yourself:

How reliable is this information? 

How significant is this information? 

Is this information outdated? Is it specialized in a specific field? 

4. Ask questions

One of the most useful parts of the critical thinking process is coming to a decision without bias. In order to do so, you need to take a step back from the process and challenge the assumptions you’re making. 

We all have bias—and that isn’t necessarily a bad thing. Unconscious biases (also known as cognitive biases) often serve as mental shortcuts to simplify problem solving and aid decision making. But even when biases aren’t inherently bad, you must be aware of your biases in order to put them aside when necessary. 

Before coming to a solution, ask yourself:

Am I making any assumptions about this information? 

Are there additional variables I haven’t considered? 

Have I evaluated the information from every perspective? 

Are there any viewpoints I missed? 

5. Identify the best solution

Finally, you’re ready to come to a conclusion. To identify the best solution, draw connections between causes and effects. Use the facts you’ve gathered to evaluate the most objective conclusion. 

Keep in mind that there may be more than one solution. Often, the problems you’re facing are complex and intricate. The critical thinking process doesn’t necessarily lead to a cut-and-dry solution—instead, the process helps you understand the different variables at play so you can make an informed decision. 

6. Present your solution

Communication is a key skill for critical thinkers. It isn’t enough to think for yourself—you also need to share your conclusion with other project stakeholders. If there are multiple solutions, present them all. There may be a case where you implement one solution, then test to see if it works before implementing another solution. 

7. Analyze your decision

The seven-step critical thinking process yields a result—and you then need to put that solution into place. After you’ve implemented your decision, evaluate whether or not it was effective. Did it solve the initial problem? What lessons—whether positive or negative—can you learn from this experience to improve your critical thinking for next time? 

Depending on how your team shares information, consider documenting lessons learned in a central source of truth. That way, team members that are making similar or related decisions in the future can understand why you made the decision you made and what the outcome was. 

Example of critical thinking in the workplace

Imagine you work in user experience design (UX). Your team is focused on pricing and packaging and ensuring customers have a clear understanding of the different services your company offers. Here’s how to apply the critical thinking process in the workplace in seven steps: 

Start by identifying the problem

Your current pricing page isn’t performing as well as you want. You’ve heard from customers that your services aren’t clear, and that the page doesn’t answer the questions they have. This page is really important for your company, since it’s where your customers sign up for your service. You and your team have a few theories about why your current page isn’t performing well, but you decide to apply the critical thinking process to ensure you come to the best decision for the page. 

Gather information about how the problem started

Part of identifying the problem includes understanding how the problem started. The pricing and packaging page is important—so when your team initially designed the page, they certainly put a lot of thought into it. Before you begin researching how to improve the page, ask yourself: 

Why did you design the pricing page the way you did? 

Which stakeholders need to be involved in the decision making process? 

Where are users getting stuck on the page?

Are any features currently working?

Then, you research

In addition to understanding the history of the pricing and packaging page, it’s important to understand what works well. Part of this research means taking a look at what your competitor’s pricing pages look like. 

Ask yourself: 

How have our competitors set up their pricing pages?

Are there any pricing page best practices? 

How does color, positioning, and animation impact navigation? 

Are there any standard page layouts customers expect to see? 

Organize and analyze information

You’ve gathered all of the information you need—now you need to organize and analyze it. What trends, if any, are you noticing? Is there any particularly relevant or important information that you have to consider? 

Ask open-ended questions to reduce bias

In the case of critical thinking, it’s important to address and set bias aside as much as possible. Ask yourself: 

Is there anything I’m missing? 

Have I connected with the right stakeholders? 

Are there any other viewpoints I should consider? 

Determine the best solution for your team

You now have all of the information you need to design the best pricing page. Depending on the complexity of the design, you may want to design a few options to present to a small group of customers or A/B test on the live website.

Present your solution to stakeholders

Critical thinking can help you in every element of your life, but in the workplace, you must also involve key project stakeholders . Stakeholders help you determine next steps, like whether you’ll A/B test the page first. Depending on the complexity of the issue, consider hosting a meeting or sharing a status report to get everyone on the same page. 

Analyze the results

No process is complete without evaluating the results. Once the new page has been live for some time, evaluate whether it did better than the previous page. What worked? What didn’t? This also helps you make better critical decisions later on.

Critically successful 

Critical thinking takes time to build, but with effort and patience you can apply an unbiased, analytical mind to any situation. Critical thinking makes up one of many soft skills that makes you an effective team member, manager, and worker. If you’re looking to hone your skills further, read our article on the 25 project management skills you need to succeed . 

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Critical Thinking

Developing the right mindset and skills.

By the Mind Tools Content Team

We make hundreds of decisions every day and, whether we realize it or not, we're all critical thinkers.

We use critical thinking each time we weigh up our options, prioritize our responsibilities, or think about the likely effects of our actions. It's a crucial skill that helps us to cut out misinformation and make wise decisions. The trouble is, we're not always very good at it!

In this article, we'll explore the key skills that you need to develop your critical thinking skills, and how to adopt a critical thinking mindset, so that you can make well-informed decisions.

What Is 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 valued asset in the workplace. People who score highly in critical thinking assessments are also rated by their managers as having good problem-solving skills, creativity, strong decision-making skills, and good overall performance. [1]

Key Critical Thinking Skills

Critical thinkers possess a set of key characteristics which help them to question information and their own thinking. Focus on the following areas to develop your critical thinking skills:

Being willing and able to explore alternative approaches and experimental ideas is crucial. Can you think through "what if" scenarios, create plausible options, and test out your theories? If not, you'll tend to write off ideas and options too soon, so you may miss the best answer to your situation.

To nurture your curiosity, stay up to date with facts and trends. You'll overlook important information if you allow yourself to become "blinkered," so always be open to new information.

But don't stop there! Look for opposing views or evidence to challenge your information, and seek clarification when things are unclear. This will help you to reassess your beliefs and make a well-informed decision later. Read our article, Opening Closed Minds , for more ways to stay receptive.

Logical Thinking

You must be skilled at reasoning and extending logic to come up with plausible options or outcomes.

It's also important to emphasize logic over emotion. Emotion can be motivating but it can also lead you to take hasty and unwise action, so control your emotions and be cautious in your judgments. Know when a conclusion is "fact" and when it is not. "Could-be-true" conclusions are based on assumptions and must be tested further. Read our article, Logical Fallacies , for help with this.

Use creative problem solving to balance cold logic. By thinking outside of the box you can identify new possible outcomes by using pieces of information that you already have.

Self-Awareness

Many of the decisions we make in life are subtly informed by our values and beliefs. These influences are called cognitive biases and it can be difficult to identify them in ourselves because they're often subconscious.

Practicing self-awareness will allow you to reflect on the beliefs you have and the choices you make. You'll then be better equipped to challenge your own thinking and make improved, unbiased decisions.

One particularly useful tool for critical thinking is the Ladder of Inference . It allows you to test and validate your thinking process, rather than jumping to poorly supported conclusions.

Developing a Critical Thinking Mindset

Combine the above skills with the right mindset so that you can make better decisions and adopt more effective courses of action. You can develop your critical thinking mindset by following this process:

Gather Information

First, collect data, opinions and facts on the issue that you need to solve. Draw on what you already know, and turn to new sources of information to help inform your understanding. Consider what gaps there are in your knowledge and seek to fill them. And look for information that challenges your assumptions and beliefs.

Be sure to verify the authority and authenticity of your sources. Not everything you read is true! Use this checklist to ensure that your information is valid:

  • Are your information sources trustworthy ? (For example, well-respected authors, trusted colleagues or peers, recognized industry publications, websites, blogs, etc.)
  • Is the information you have gathered up to date ?
  • Has the information received any direct criticism ?
  • Does the information have any errors or inaccuracies ?
  • Is there any evidence to support or corroborate the information you have gathered?
  • Is the information you have gathered subjective or biased in any way? (For example, is it based on opinion, rather than fact? Is any of the information you have gathered designed to promote a particular service or organization?)

If any information appears to be irrelevant or invalid, don't include it in your decision making. But don't omit information just because you disagree with it, or your final decision will be flawed and bias.

Now observe the information you have gathered, and interpret it. What are the key findings and main takeaways? What does the evidence point to? Start to build one or two possible arguments based on what you have found.

You'll need to look for the details within the mass of information, so use your powers of observation to identify any patterns or similarities. You can then analyze and extend these trends to make sensible predictions about the future.

To help you to sift through the multiple ideas and theories, it can be useful to group and order items according to their characteristics. From here, you can compare and contrast the different items. And once you've determined how similar or different things are from one another, Paired Comparison Analysis can help you to analyze them.

The final step involves challenging the information and rationalizing its arguments.

Apply the laws of reason (induction, deduction, analogy) to judge an argument and determine its merits. To do this, it's essential that you can determine the significance and validity of an argument to put it in the correct perspective. Take a look at our article, Rational Thinking , for more information about how to do this.

Once you have considered all of the arguments and options rationally, you can finally make an informed decision.

Afterward, take time to reflect on what you have learned and what you found challenging. Step back from the detail of your decision or problem, and look at the bigger picture. Record what you've learned from your observations and experience.

Critical thinking involves rigorously and skilfully using information, experience, observation, and reasoning to guide your decisions, actions and beliefs. It's a useful skill in the workplace and in life.

You'll need to be curious and creative to explore alternative possibilities, but rational to apply logic, and self-aware to identify when your beliefs could affect your decisions or actions.

You can demonstrate a high level of critical thinking by validating your information, analyzing its meaning, and finally evaluating the argument.

Critical Thinking Infographic

See Critical Thinking represented in our infographic: An Elementary Guide to Critical Thinking .

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Building Critical Thinking Skills to Solve Problems at Work

MIranda Fraraccio

Table of Contents

Critical thinking is a vital soft skill that uses one’s experiences and analytical skills to deduce information and make educated decisions. It’s an essential skill to have in the workplace, as the ability to use information from a broader and more impartial perspective allows your employees to make more informed decisions and see a comprehensive view of any situation. 

The U.S. Department of Labor identified critical thinking as a key component for essential workplace skills, including problem-solving and decision-making. Here’s how to build – and implement – critical thinking skills in the workplace.

>> Learn more: 12 Business Skills You Need to Master

How to use critical thinking to problem-solve

Here is a six-step problem-solving process to try with your team to build and use this skill.

1. Name the situation.

When you name the situation, you present a single discussion point that everyone in the discussion can identify. This statement can be written on a whiteboard as a visual prompt so that the team can focus on the point and redirect the discussion when the topic shifts. Critical thinking involves keeping an open mind about situations. You help participants remember the goal of the group by naming the situation.

2. List all possible solutions.

Brainstorming takes place during this part of the process. There is nothing outside the realm of possibilities at this point in the discussion. When you open the conversation to unlimited options, you expand thinking beyond one person. The ability to expand your thinking offers the conversation many possible solutions that you may not have considered without the expression of thoughts and opinions. Make sure that all potential solutions discussed during this time stay on task for the situation that has been named in the first step. Critical thinking includes the ability to keep an open mind to other considerations and viewpoints without losing track of the end goal. You expand the discussion to see new options and stay on task by identifying multiple opportunities.

3. Narrow your solutions to three options.

Everyone on the team needs to agree with at least one of the three options. Individuals who can find a compromise and create solutions from many perspectives are better able to bring a team together. Write each solution at the top of a whiteboard and include below each one a list of its advantages and disadvantages. Critical-thinking skills offer the ability to look at situations rationally without judgments of good and bad or wrong and right. You can maintain a rational discussion when you bring consensus to a few intentionally chosen solutions.

Critical thinking helps individuals look at situations from multiple sides and imagine several ways to respond.

4. Choose one option from the three choices.

Make a final choice that offers the best chance of success based on rational discussion about the situation. Review this choice in relation to how well it solves the designated problem. Critical thinking skills help individuals use a more systematic way to come to conclusions. This reduces the chance of making decisions based on incorrect inferences arising from emotional conclusions.

5. Put a plan in place to implement the chosen solution.

Your chosen solution should have timelines and a list that identifies which participants are responsible for what parts of the final plan. Critical-thinking skills include the ability to commit to the chosen solution. You increase attention to detail and interest from the participants in implementing the solution when they are an integral part of the process.

6. Complete the plan.

Some employees find this part of the process the most difficult. Think of the number of times a great plan floundered because there was no follow-up. Make sure each person from the team has a part to play in the process that emphasizes their areas of expertise and interest. Complete regular reviews of people and timelines for project management. Critical thinking involves the ability to see the value of the overall plan. At this point in the process, individuals should be able to see the value of the solution and have buy-in since they were part of the process.

This problem-solving process creates an environment where critical thinking becomes a working part of finding a solution. For individuals who struggle with this method, you may want to consider some training in critical thinking. Overall, though, this process promotes critical thinking in your employees. You can also integrate this activity for making plans and creating a mission. The value added to your organization includes improved engagement , insight and productivity from your team.

According to research from America Succeeds , durable skills – such as critical thinking – accounted for 7 out of 10 requested skills in a study of 82 million job postings.

Why critical thinking is essential in the workplace

In recent decades, companies have recognized the need for integrating critical thinking into the workplace to help build the success of their organizations. Strong critical-thinking skills can greatly benefit everybody in the workplace. Not only does thinking more openly introduce ideas and solutions that widen the opportunities for success, but it also provides an increase in teamwork and productivity and a decrease in conflict . Here are some additional benefits of critical thinking in the workplace.

Required in certain professions

In many professions – particularly those based on research or that require deductive reasoning, such as finance, education, research and law – acquiring critical-thinking skills is necessary. With critical thinking, employees can solve problems objectively by considering varying perspectives and analyzing facts without bias, allowing for smart decision-making and problem-solving.

Improves decision-making

Those with critical-thinking skills mull over their decisions thoroughly by researching, looking at information objectively, asking questions, and weighing the pros and cons before acting. This skill can help businesses stay on track when making decisions by thoroughly reviewing the risk versus reward of each decision. 

Boosts happiness

Critical thinking can boost happiness , as it is empowering to have the skills to make your own, well-informed decisions. Those who possess this skill are more in tune with their goals, needs and personal ethics, and they have a better understanding of what in their situation needs to change to make themselves happy or grow. [Read related article: How Hiring a Chief Happiness Officer Can Save Your Business ]

One of the main reasons businesses don’t embrace critical thinking as an essential part of their organization is that they feel they are just too busy; however, the benefits of critical thinking are invaluable to a team.

How to build critical-thinking skills

Here are a few ways you can polish your critical-thinking skills.

Practice active listening.

Practice actively listening by keeping an open mind and being attentive to those around you, from associates to executives. Listen to what others are saying to gain an understanding of each person’s individual perspective, needs and expectations, and show them empathy. This level of understanding will allow you to work together more effectively and make decisions that everyone is satisfied with.

Ask critical questions.

Instead of taking information at face value, be curious and ask questions to ensure you have everything you need to make a well-informed decision. Using open-ended questions offers an opportunity for further exploration, as they dive deeper and provide insightful details that can be helpful when making decisions.

Vet new information.

Don’t assume all new information you hear is true; instead, take time to thoroughly vet it by ensuring it’s up to date and it comes from a trustworthy source. Look at the existing evidence and the new facts being presented, then question thought processes and consider whose voice is missing.

Consider more than one perspective.

While you may feel that you have the “right” perspective, consider all points of view to fully understand others and their reasoning. This will help you improve your working relationships, better understand where your peers are coming from and tailor your communication to meet their needs.

Question your own biases.

Regardless of whether or not you try to avoid it in your decision-making process, everybody has their own biases, which are the foundation of their thinking. By uncovering your own biases and being actively aware of them, you can grow as a critical thinker and work to keep them separate from your decision-making process. 

Conduct research.

If there are any unanswered questions or gaps in the information provided, conduct research to further your understanding and reach a decision. Consider a source’s intention when conducting research, avoiding any that are sales-based or contain ill will. Don’t use social media to obtain information; stick to reputable publications free of bias and cite their sources.

Form your own opinion.

Be an independent thinker and form your own opinions by considering the information presented to you, including facts and evidence. Listen to and consider the opinions of others, but use deductive reasoning to form your own opinion – and stay true to it.

Lynette Reed contributed to the writing and reporting in this article. 

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

critical thinking skills for business

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 .

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4 Ways to Develop Your Strategic Thinking Skills

Business professionals using strategic thinking skills

  • 10 Sep 2020

Think back to the last time you participated in a strategic planning meeting for your organization. You were likely presented with a challenge to solve or goal to achieve.

Do you remember your contributions during that meeting? Did you offer compelling ideas and plot a course of action, or find it difficult to think strategically and develop a solution? Did you have a good idea, but struggle to communicate it in a logical way? Were you an active participant in the conversation, or did others helm it?

Strategic thinking skills are among the most highly sought-after management competencies. Why? Because employees capable of thinking critically, logically, and strategically can have a tremendous impact on a business’s trajectory.

If you want to improve your strategic thinking skills, the good news is that, with the right mindset and practice, you can.

Here are four ways to improve your strategy skills , so the next time you’re involved in a strategic planning meeting, you can ensure your contributions are noticed.

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What Are Strategic Thinking Skills?

Strategic thinking skills are any skills that enable you to use critical thinking to solve complex problems and plan for the future. These skills are essential to accomplish business objectives, overcome obstacles, and address challenges—particularly if they’re projected to take weeks, months, or even years to achieve.

Strategic thinking skills include:

  • Analytical skills: To ideate a strategy that helps your organization reach its objectives, you must be capable of analyzing a variety of inputs—from financial statements and KPIs , to market conditions, emerging business trends, and internal resource allocation. This initial analysis is crucial to creating a strategy that aligns with the current reality facing your organization.
  • Communication skills: Putting a strategy into place for your company, regardless of its size, requires solid communication skills . The ability to communicate complex ideas, collaborate with internal and external stakeholders, build consensus, and ensure everyone is aligned and working toward shared goals are all central to strategic thinking.
  • Problem-solving skills: Strategic planning is often used to solve problems or address challenges, such as missed financial targets, inefficient workflows, or an emerging competitor. Implementing a strategy that addresses the central challenge you face requires you to first understand the problem and its potential solutions. From there, you can craft a strategy that solves it.
  • Planning and management skills: Strategy isn’t just about thinking of a solution—it involves implementation, too. Once data has been analyzed, the problem is understood, and a solution has been identified, you need strong planning and management skills to bring everything together.

How to Improve Your Strategic Thinking Skills

1. ask strategic questions.

If you want to improve your strategic thinking skills, one of the simplest things you can do is ask more strategic questions. Doing so allows you to exercise your planning skills, become adept at spotting opportunities, and develop a more strategic mindset you can leverage throughout your career.

According to the Harvard Business School Online course Disruptive Strategy , strategic questions can relate to a challenge, opportunity, or ambiguity you face in your current situation, whether personal or professional. They might, for instance, relate to launching a new business or product, beating a competitor, or structuring your organization for innovation.

It’s also important that your questions apply to your role and responsibilities so you can act on them.

Some examples of strategic questions you might ask include:

  • How can we strategically position ourselves to enter a new market?
  • What’s the direction for growth for each of our products or services?
  • Where will the organization's growth come from in the next five years, and how does it compare with where growth has historically come from?
  • How should the organization respond to the threat presented by potentially disruptive competitors ?

2. Observe and Reflect

In addition to asking strategic questions, you need to answer and address them skillfully. One of the most effective ways of accomplishing this is to observe and reflect on your current situation, ensuring any strategy you conceive is grounded in facts.

For example, imagine that the business you work for has begun losing market share for one of its products among its traditional customers. At the same time, it’s gained market share from an entirely new customer base. It’s easy to assume why this might be happening, but doing so can lead you down the wrong path at a critical moment in your organization’s existence.

Instead of blindly following an assumption, gather as much information as possible to use when crafting your strategy. For example, this might include conducting user interviews with new customers to identify the different jobs they hire your product to perform.

Understanding why new customers are attracted to your product can enable you to tailor your marketing strategy and product development to better embrace their needs .

3. Consider Opposing Ideas

Once you’ve landed on a strategy that can help your organization reach its goals, question your assumptions, and put your hypothesis through rigorous testing. By doing so, you can ensure you’re not overlooking another possibility.

Playing devil’s advocate with your ideas can allow you to preemptively identify weaknesses in your argument, and equip you to defend your strategy when others ask questions. It can also help you sharpen the logic skills you need to communicate and execute your strategy.

To develop this skill, get in the habit of questioning yourself any time you’re about to make an assertion. Should you consider a different perspective? Is there another possibility you may have overlooked?

4. Embrace Formal Training

By practicing the methods described above, you can improve your strategic thinking skills at your own pace. However, there are other learning options you can pursue.

If you need to quickly ramp up your strategy skills—to address a pressing need your organization is facing, position yourself for a new role, or finally launch your own business—formal training might be your best option.

For example, by enrolling in the online course Disruptive Strategy , you can discover how to make innovation a reality for your organization. Over six weeks, you’ll learn about the jobs to be done framework and disruptive innovation theory, and build skills to identify and execute high-level strategy.

Which HBS Online Strategy Course is Right for You? | Download Your Free Flowchart

Cultivating a Strategic Mindset

Whether in the long- or short-term, a strategic mindset can be developed through self-exploration, critical questioning, and formal training.

The advantage of having a strategic mindset is learning how to think rather than what to think. Although you might not always have the right answers, strategic thinking skills can empower you to spot new opportunities, address emerging challenges, and plan for future success.

Are you looking to develop a strategic mindset? Explore our portfolio of online strategy courses and download the free flowchart to determine which is the best fit for you and your goals.

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critical thinking skills for business

10 Best Critical Thinking Tips from Business Experts

  • POSTED ON June 19, 2023
  • by Marcjean Yutuc

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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.

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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.

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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.

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Don’t Fear Questioning

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

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

Here are some additional tips that may help you:

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

Embrace Lifelong Learning

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

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

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

Here are some tips for embracing lifelong learning:

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

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

photo of a team of critical thinkers

More Tips: How to Improve Critical Thinking Skills at Work

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

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

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

Frequently Asked Questions About Critical Thinking for Business

1. what is critical thinking.

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

2. Why is critical thinking important in business?

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

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

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

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

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

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

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

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

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

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

Key Takeaways

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

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

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

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

Subscribe to Skill Success All Access Pass today!

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

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Marcjean Yutuc

Marcjean Yutuc

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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

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How to Identify and Remove Barriers to Critical Thinking

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“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

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

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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.

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

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Table of Contents

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

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

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

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

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

What is critical thinking?

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

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

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

5 ways to improve your critical thinking in business

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

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

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

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

1. Question basic assumptions

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

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

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

2. Examine alternate points of view

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

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

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

3. Be aware of your biases and mental processes

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

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

Some of the most common biases to overcome are:

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

4. Reverse your approach

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

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

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

5. Evaluate existing evidence

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

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

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

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

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

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

9 traits of critical thinking in business

Critical thinking skills result in better business decisions

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

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

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

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Critical thinking definition

critical thinking skills for business

Critical thinking, as described by Oxford Languages, is the objective analysis and evaluation of an issue in order to form a judgement.

Active and skillful approach, evaluation, assessment, synthesis, and/or evaluation of information obtained from, or made by, observation, knowledge, reflection, acumen or conversation, as a guide to belief and action, requires the critical thinking process, which is why it's often used in education and academics.

Some even may view it as a backbone of modern thought.

However, it's a skill, and skills must be trained and encouraged to be used at its full potential.

People turn up to various approaches in improving their critical thinking, like:

  • Developing technical and problem-solving skills
  • Engaging in more active listening
  • Actively questioning their assumptions and beliefs
  • Seeking out more diversity of thought
  • Opening up their curiosity in an intellectual way etc.

Is critical thinking useful in writing?

Critical thinking can help in planning your paper and making it more concise, but it's not obvious at first. We carefully pinpointed some the questions you should ask yourself when boosting critical thinking in writing:

  • What information should be included?
  • Which information resources should the author look to?
  • What degree of technical knowledge should the report assume its audience has?
  • What is the most effective way to show information?
  • How should the report be organized?
  • How should it be designed?
  • What tone and level of language difficulty should the document have?

Usage of critical thinking comes down not only to the outline of your paper, it also begs the question: How can we use critical thinking solving problems in our writing's topic?

Let's say, you have a Powerpoint on how critical thinking can reduce poverty in the United States. You'll primarily have to define critical thinking for the viewers, as well as use a lot of critical thinking questions and synonyms to get them to be familiar with your methods and start the thinking process behind it.

Are there any services that can help me use more critical thinking?

We understand that it's difficult to learn how to use critical thinking more effectively in just one article, but our service is here to help.

We are a team specializing in writing essays and other assignments for college students and all other types of customers who need a helping hand in its making. We cover a great range of topics, offer perfect quality work, always deliver on time and aim to leave our customers completely satisfied with what they ordered.

The ordering process is fully online, and it goes as follows:

  • Select the topic and the deadline of your essay.
  • Provide us with any details, requirements, statements that should be emphasized or particular parts of the essay writing process you struggle with.
  • Leave the email address, where your completed order will be sent to.
  • Select your prefered payment type, sit back and relax!

With lots of experience on the market, professionally degreed essay writers , online 24/7 customer support and incredibly low prices, you won't find a service offering a better deal than ours.

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How Leaders Should Think Critically

  • John Baldoni

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 decade ago and as dean, has been working to transform his school’s business curriculum with greater emphasis on critical thinking skills. As Lane Wallace explained in the […]

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 decade ago and as dean, has been working to transform his school’s business curriculum with greater emphasis on critical thinking skills. As Lane Wallace explained in the New York Times , what Martin and many others are seeking to do is approach learning and problem solving from a multicultural platform that borrows from academia, business, the arts and even history.

critical thinking skills for business

  • John Baldoni is an internationally recognized executive coach and leadership educator. His most recent book is MOXIE: The Secret to Bold and Gutsy Leadership .

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critical thinking skills for business

What You Can Do To Improve Critical-Thinking Skills

In a technology-driven world where we are overwhelmed with information, people often make decisions without thinking things through – and then rue what they have done.

This is because decisions made without data, analysis and facts are decisions made in the dark.

People seem to have forgotten how to check credible sources, access and understand data and look at the facts.

One  study  of millennial and Gen Z workers in the United States, the United Kingdom, Germany and Japan found that people have so much on their minds, so many distractions overwhelming them, that they struggle to think deeply and reflectively.

But poorly thought-out plans and decisions aren’t good for business or for the career prospects of individuals.

Critical thinking is as important as ever – in business and in life – and here are a few things worth knowing about it:

  • It’s possible to train yourself to become a critical thinker, and there are steps you can take that will help. Start with challenging the norm, “We have always done it this way.” Ask these questions: “Why?” “What data supports a different way to look at a problem and come up with a solution?” “How much time have I actually set aside to think?” “How can I look for a solution with the data that I see?”
  • When you have mastered critical thinking, you can apply it to your current career, job and company — or to the next one. Critical thinking allows you to replicate success. Once I am working toward a new goal, I look back on the strategy that made me successful and replicate it.
  • Stepping back and looking at the big picture is an important part of critical thinking — but so is delving into the details and coming up with a plan, especially as it relates to work. Your plan should rely on four key components.  Data : What is it showing me, and where does the success exist?  Total addressable market : How much of the market can I capture?  Competition : Who are my top competitors, and how do I win against them? And finally,  identifying the breaks : Where am I winning and losing, and how can I get better?
  •  In a hectic world, it’s important to carve out time to think, so people should set aside an hour each day when they can be alone without distractions. Without time to think, you are on a hamster wheel, spinning and spinning but never getting ahead. This time to think should happen daily, shutting out all distractions so you can consider such things as: “What worked, what didn’t, and how do I improve?”

The bottom line is when you start to think in terms of data and solutions and strategies, you can start to see patterns and trends elsewhere in your life — and make changes to win at both your career and life.

Puja Bhola Rios  is the author of “ Get It Together: A Winning Formula for Success from the Boss You Need ” and the chief revenue officer for Frame.io, an Adobe company and the world’s premier video review and collaboration platform. Rios previously spent seven years working at Xerox and 13 years at CareerBuilder as senior vice president of Enterprise Sales and Customer Success. She also has been a chronic pain advocate and blogger, and is author of the Huffington Post feature blog, “ Me vs. Fibromyalgia .”

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Higher ed has role to play in climate change solutions

Young people, including college and university students, are pelted with bad news about the world they will inherit.

Vitally important fields such as ecology and environmental science paint a picture of the planet’s natural and physical systems under stress, and the negative impacts of climate change are becoming increasingly widespread, frequent, and irrefutable.

Worldwide, the energy sector — particularly the penchant for burning fossil fuels to produce heat and electricity — is the greatest contributor to climate-altering emissions. In the United States, the transportation sector outweighs the energy sector in terms of overall emissions, but not by much. It is no surprise that many young people suffer from climate anxiety and struggle to find hope for the future.

Fortunately, higher education has a crucial role in combating that sense of hopelessness, and not simply because higher education is itself empowering. Crisis often begets opportunity, and higher ed has a generational opportunity to train the individuals who will lead the energy transition and help human society move to a renewable, low-carbon, equitable energy future.

By creating or bolstering interdisciplinary energy education programs, colleges and universities signal their commitment to a new energy future, and — most important — to nurturing the talent and expertise that will get us there.

Three basic curricular ingredients seem necessary.

Science and technology of energy production, conversion and use

Fossil fuels are finite, polluting, and increasingly difficult to extract. Other fuels — sunshine, water, wind, and geothermal heat — are nonpolluting, essentially infinite, and their growth rate outpaces global energy demand. Students need solid grounding in the physical science of energy options to understand the fundamental limits of all energy-conversion approaches while recognizing the potential in new approaches like renewables and efficiency.

Business and economics of energy options, trade-offs and new sources of value

Intermittent renewables are increasingly cost-competitive around the world on their own; well-designed carbon taxes or carbon markets would only make them more so. Business, economic, and regulatory frameworks built around fossil-fueled energy systems, centralized generation and externalized costs have to be updated to suit new distributed energy systems in which far more players, from utilities to individual households and EV owners, have more complex and complementary roles to play.

Critical thinking, back-of-the-envelope and synthesis skills

Graduates entering the energy workforce need to be able to think creatively, critically and on their feet. Those who can synthesize data from different sources, recognize potential leverage points, communicate across expert and lay audiences and find common ground among diverse audiences will find it easier to lead others through the energy transition, whether at the household, factory, municipal, enterprise or regional scale.

Humans will not successfully navigate the energy transition by spreadsheet model, policy template, integrated circuit or CAD drawing alone. Indeed, the energy transition is simultaneously an engineering, economic, scientific, policy, sociological, historical, and ethical problem, and much more. Higher education is uniquely suited to refining that one vital resource — human ingenuity — without which we will undoubtedly fail to negotiate the energy transition and solve climate change.

Many universities are starting to do this work. At the February meeting of the University Energy Institutes Leadership Collaborative in Phoenix, Ariz., directors gathered to discuss energy industry developments and the work being done at institutes and centers on the country. Some institutes are focused on research-to-market. Some grew out of programs built around conventional fossil fuel development, or out of engineering programs. Unfortunately, fewer are focused primarily on renewables or efficiency, or on undergraduate education.

The final session of the meeting asked participants to identify the most important and impactful ways universities can advance the energy transition. The following suggestions emerged:

  • Help translate and communicate science and technology for various groups.
  • Be the neutral, third-party convener for important dialogues among diverse stakeholders.
  • Host living energy laboratories on campus.
  • Provide expertise for local governments.
  • Be centers of innovation: fundamental science and translational technology.
  • Host student-led energy transition events and encourage participation from diverse groups.
  • Train students for roles in the energy transition.
  • Catalyze experiential learning for students.

At Western Washington University’s Institute for Energy Studies, the above ingredients are baked into our curriculum. Students choose energy studies because they want to feel empowered to do something about climate change, and the vast majority of our graduates do just that, finding their way into meaningful energy careers. Now, at the start of our second decade, we are looking to refine our model, deepen our connections to the local and regional community, and share the experience we’ve gained with other higher ed institutions looking to build or grow their own energy studies programs.

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The opinions expressed in reader comments are those of the author only and do not reflect the opinions of The Seattle Times.

IMAGES

  1. 10 Essential Critical Thinking Skills (And How to Improve Them

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  2. How You Can Improve Your Critical Thinking Skills

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  3. Critical Thinking Skills

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  4. Critical Thinking Definition, Skills, and Examples

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  6. Critical Thinking

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VIDEO

  1. Introduction to Critical Thinking

  2. How to develop Critical Thinking And Analytical Skills

  3. Top Critical Thinking Skills

  4. The Core of Critical Thinking Sneak Peek #school #criticalthinking #motivation #education #success

  5. The Hidden Secret to Developing Critical Thinking

  6. Critical Thinking is All You Need To Build Business and Life (How To Think Critically)

COMMENTS

  1. What Are Critical Thinking Skills and Why Are They Important?

    According to the University of the People in California, having critical thinking skills is important because they are [ 1 ]: Universal. Crucial for the economy. Essential for improving language and presentation skills. Very helpful in promoting creativity. Important for self-reflection.

  2. Why Critical Thinking Matters in Your Business

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

  3. 10 Business Skills Every Professional Needs

    Understanding essential business concepts and tools can benefit all professionals. For example, it's critical for business owners to ensure all members of their organizations are equipped with skills like critical thinking, time management, and effective communication to ensure daily operations run smoothly and reach business goals.

  4. 3 Simple Habits to Improve Your Critical Thinking

    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 are three ...

  5. Why Your Business Needs Critical Thinking

    Critical thinking skills are needed in every business today. getty. Rapid technological advancements, globalization, and economic uncertainties have created complex challenges for most businesses.

  6. Everything You Need to Know About Critical Thinking Skills f

    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.

  7. A Short Guide to Building Your Team's Critical Thinking Skills

    A Short Guide to Building Your Team's Critical Thinking Skills. by. Matt Plummer. October 11, 2019. twomeows/Getty Images. Summary. Most employers lack an effective way to objectively assess ...

  8. 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 ...

  9. Build Critical Thinking Skills in 7 Steps w/ Examples [2024] • Asana

    The critical thinking process doesn't necessarily lead to a cut-and-dry solution—instead, the process helps you understand the different variables at play so you can make an informed decision. 6. Present your solution. Communication is a key skill for critical thinkers.

  10. 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 ...

  11. Building Critical Thinking Skills at Work

    How to use critical thinking to problem-solve. Here is a six-step problem-solving process to try with your team to build and use this skill. 1. Name the situation. When you name the situation, you present a single discussion point that everyone in the discussion can identify. This statement can be written on a whiteboard as a visual prompt so ...

  12. Critical Thinking and the Urgency Trap

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

  13. Why Is Critical Thinking Important for Business Growth?

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

  14. 4 Ways to Develop Your Strategic Thinking Skills

    Strategic thinking skills are any skills that enable you to use critical thinking to solve complex problems and plan for the future. These skills are essential to accomplish business objectives, overcome obstacles, and address challenges—particularly if they're projected to take weeks, months, or even years to achieve. Strategic thinking ...

  15. 13 Easy Steps To Improve Your Critical Thinking Skills

    6. Ask lots of open-ended questions. Curiosity is a key trait of critical thinkers, so channel your inner child and ask lots of "who," "what," and "why" questions. 7. Find your own reputable ...

  16. 10 Best Critical Thinking Tips from Business Experts

    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 ...

  17. 3 Ways to Build Critical-Thinking Skills

    Bouygues outlines three key components of critical thinking: questioning your assumptions, reasoning through logic, and diversifying your thought process. Key episode topics include: strategy ...

  18. The Best Critical Thinking Questions in Business

    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.

  19. How to Help Your Team Develop Critical Thinking Skills

    Foster a culture of curiosity. Be the first to add your personal experience. 4. Model critical thinking behavior. Be the first to add your personal experience. 5. Give feedback and recognition. Be ...

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

    Examine alternate points of view. 3. Be aware of your biases and mental processes. 4. Reverse your approach. 5. Evaluate existing evidence. Critical thinking skills result in better business decisions. We've heard about the importance of critical thinking skills in school, but it's not always a common topic in the business world.

  21. Using Critical Thinking in Essays and other Assignments

    Critical thinking, as described by Oxford Languages, is the objective analysis and evaluation of an issue in order to form a judgement. Active and skillful approach, evaluation, assessment, synthesis, and/or evaluation of information obtained from, or made by, observation, knowledge, reflection, acumen or conversation, as a guide to belief and ...

  22. Business Programs

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