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Why Critical Thinking Matters in Your Business

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

Table of Contents

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

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

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

What is critical thinking?

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

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

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

Why is critical thinking essential in the workplace?

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

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

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

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

What are critical thinking skills?

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

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

What are the benefits of critical thinking in the workplace?

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

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

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

How do you teach critical thinking in the workplace?

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

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

How do you identify successful critical thinking?

Successful critical thinking happens during a crisis, not after.

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

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

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

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

Critical thinking is the key to your business success

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

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

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

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What is Critical Thinking and Why is it Valuable in the Workplace?

• Articles and Resources
• > Personal Effectiveness and Preparing for Change
• > What is Critical Thinking and Why is it Valuable in the Workplace?

There are times at work when you simply have to “do.” A tight deadline, a demanding project outline, or a highly particular superior might mean that it makes sense to complete a task without too much mental tinkering. But work like this can be unsustainable and worse — it won’t leverage your ability to think critically.

There is value in thinking critically in every aspect of your life. From making decisions in your personal life, to interrogating the media you consume, to assessing your work with a critical eye, applying critical thinking is an essential skill everyone should be trying to hone.

At your workplace, critical thinking can distinguish you as a leader, and a valuable mind to bounce ideas off. It can help improve the quality of your work, and the perception those higher up the chain have of you.

Here’s what you need to know about critical thinking in the workplace:

What Exactly is “Critical Thinking”?

  In a nutshell, critical thinking is the ability to think reasonably, detaching yourself from personal bias, emotional responses, and subjective opinions. It involves using the data at hand to make a reasoned choice without falling prey to the temptations of doing things simply because they’ve always been done a certain way.

Critical thinking takes time. It might be quicker simply to take instruction at face value, or rely on the traditions of your team. But without analyzing the reasons behind decisions and tasks, it becomes extremely easy to adopt bad habits. This might be time-wasting meetings, inefficient uses of effort, or poor interactions with team members. Taking the time to ask “why” you’re doing something is the first step to thinking critically.

Sometimes, data is available which allows you to make reasoned decisions based on absolute facts. If you can show that a new best practice can objectively improve current processes with hard data, you’ve used the very basics of critical thinking. That said, actual numbers aren’t always available when making a decision. Real critical thinking involves taking a careful look at situations and making a decision based on what is known, not what is felt.

Why Is Critical Thinking Important in the Workplace?

The short answer to the above question is this: critical thinkers make the best decisions, most often. And in the workplace, where choices about how to complete tasks, communicate information, relate with coworkers, and develop strategy are so common, critical thinkers are extremely valuable.

A savvy hiring manager will make this part of the recruitment process. It’s pretty easy to gauge how someone is inclined to solve a problem — ask them how they would deal with a specific situation, and give them the opportunity to use their critical thinking skills, versus deferring to an emotional, or prescribed reaction. Employing people who can think and act reasonably will pay enormous dividends down the road.

Using your critical thinking skills in the workplace will define you as a problem solver. This is not only useful career-wise (although having upper-level people at your company think highly of you is undoubtedly a benefit) it also establishes you as a leader among your fellow team members. Demonstrating your ability to solve problems and accomplish goals effectively will help instill confidence in you with all your coworkers.

How to Use Critical Thinking in the Workplace

The first step to actually using critical thinking is approaching every situation with an open mind. You need to be receptive to all information available, not just the kind that satisfies your preconceived notions or personal biases. This can be easier said than done, of course — lessons learned and beliefs held are often done so with a reason. But when it comes to critical thinking, it’s important to analyze each situation independently.

Once you’ve analyzed a situation with an open mind, you need to consider how to communicate it properly. It’s all very well and good to approach situations with objective logic, but it doesn’t do you any favours to sound like  Mr. Spock  when you’re conveying your conclusions. Be tactful, patient and humble when you are explaining how and why you’ve come to decisions. Use data if available to support your findings, but understand that not everyone is able to remove emotion from situations.

The final, and perhaps least obvious, application with critical thinking is creativity. Often, getting creative means pushing boundaries and reshaping convention. This means taking a risk — one that can often be worth the reward. Using a critical thinking approach when getting creative can help you mitigate the risk, and better determine what value your creativity can bring. It will help you and your team try new things and reinvent current processes while hopefully not rocking the boat too much.

Learn More About Critical Thinking

Critical thinking is a valuable skill for all aspects of your life. It benefits problem solving, creativity, and teamwork. And it translates particularly well to the workplace, where it can distinguish you as a valuable employee and leader.

Taking the extra time to examine things objectively, make decisions based on logic, and communicate it tactfully will help you, those you work with, and your work goals prosper. To learn more about how to do that, have a look at our  Critical Thinking and Problem Solving for Effective Decision-Making   workshop and register today!

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

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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Critical Thinking in Entrepreneurship: Definition, Types and How to Develop It

To be a successful entrepreneur, you will need a variety of skills and abilities. Some entrepreneurs will need good marketing skills while others need to be able to develop great products. To do these effectively, all successful entrepreneurs will need to learn how to think critically. 

What is Critical Thinking in Entrepreneurship?

Entrepreneurial critical thinking also extends to understanding and predicting market trends, consumer behaviors, and economic shifts. It involves questioning the status quo, challenging traditional business models, and innovating new pathways for growth. In this realm, critical thinking is not just a tool for problem-solving but a framework for envisioning and realizing new possibilities.

Types of Critical Thinking Skills

Problem-solving ability.

Entrepreneurs with strong problem-solving skills can navigate challenges much better than those who struggle here. That is because problem-solving is the majority of what entrepreneurs do. Legendary entrepreneur Richard Branson once said, “Launching a business is essentially an adventure in problem-solving.”

Decision-Making

Decision-making is another one of those non-negotiable skills needed for business and entrepreneurship. When it comes to hierarchy, entrepreneurs are at the very top of their businesses. This means without a boss to tell them what to do, they are primarily the last stop when it comes to making decisions. Even in the realm of co-founders, each person is responsible for a certain level of decision-making. This can add additional stress and anxiety to the already stress-inducing role of the entrepreneur.

Open-Mindedness

Open-mindedness in critical thinking is about being receptive to new ideas, perspectives, and possibilities. It requires an entrepreneur to be flexible and adaptable. The person has to be willing to consider viewpoints that are different from their own. Also, they need to consider that others may have solutions to problems that they have missed.

Identifying Opportunities

Opportunity recognition in entrepreneurship is the process of identifying and evaluating potential business ideas or markets that are not yet fully maximized. This is a really important skill for entrepreneurs and they need to be able to think critically to do it. The reason is that it involves finding gaps in the market or a specific need that has not been met.

Risk Assessment and Management

Managing personal and professional risks is important for entrepreneurs as they attempt to grow businesses and themselves. This critical thinking skill means learning which risks are worth taking and mitigating those risks. 

Develop Critical Thinking Skills

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4 Ways to Develop Your 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.

Access your free e-book today.

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.

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.

About the Author

The Path to Critical Thinking

by Stever Robbins

Can you write a refresher on critical thinking?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

9 Min Read | Oct 3, 2023

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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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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Critical Thinking Definition, Skills, and Examples

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Critical thinking refers to the ability to analyze information objectively and make a reasoned judgment. It involves the evaluation of sources, such as data, facts, observable phenomena, and research findings.

Good critical thinkers can draw reasonable conclusions from a set of information, and discriminate between useful and less useful details to solve problems or make decisions. These skills are especially helpful at school and in the workplace, where employers prioritize the ability to think critically. Find out why and see how you can demonstrate that you have this ability.

Examples of Critical Thinking

The circumstances that demand critical thinking vary from industry to industry. Some examples include:

• A triage nurse analyzes the cases at hand and decides the order by which the patients should be treated.
• A plumber evaluates the materials that would best suit a particular job.
• An attorney reviews the evidence and devises a strategy to win a case or to decide whether to settle out of court.
• A manager analyzes customer feedback forms and uses this information to develop a customer service training session for employees.

Why Do Employers Value Critical Thinking Skills?

Employers want job candidates who can evaluate a situation using logical thought and offer the best solution.

Someone with critical thinking skills can be trusted to make decisions independently, and will not need constant handholding.

Hiring a critical thinker means that micromanaging won't be required. Critical thinking abilities are among the most sought-after skills in almost every industry and workplace. You can demonstrate critical thinking by using related keywords in your resume and cover letter and during your interview.

How to Demonstrate Critical Thinking in a Job Search

If critical thinking is a key phrase in the job listings you are applying for, be sure to emphasize your critical thinking skills throughout your job search.

Add Keywords to Your Resume

You can use critical thinking keywords (analytical, problem solving, creativity, etc.) in your resume. When describing your work history, include top critical thinking skills that accurately describe you. You can also include them in your resume summary, if you have one.

For example, your summary might read, “Marketing Associate with five years of experience in project management. Skilled in conducting thorough market research and competitor analysis to assess market trends and client needs, and to develop appropriate acquisition tactics.”

Mention Skills in Your Cover Letter

Include these critical thinking skills in your cover letter. In the body of your letter, mention one or two of these skills, and give specific examples of times when you have demonstrated them at work. Think about times when you had to analyze or evaluate materials to solve a problem.

Show the Interviewer Your Skills

You can use these skill words in an interview. Discuss a time when you were faced with a particular problem or challenge at work and explain how you applied critical thinking to solve it.

Some interviewers will give you a hypothetical scenario or problem, and ask you to use critical thinking skills to solve it. In this case, explain your thought process thoroughly to the interviewer. He or she is typically more focused on how you arrive at your solution rather than the solution itself. The interviewer wants to see you analyze and evaluate (key parts of critical thinking) the given scenario or problem.

Of course, each job will require different skills and experiences, so make sure you read the job description carefully and focus on the skills listed by the employer.

Top Critical Thinking Skills

Keep these in-demand skills in mind as you refine your critical thinking practice —whether for work or school.

Part of critical thinking is the ability to carefully examine something, whether it is a problem, a set of data, or a text. People with analytical skills can examine information, understand what it means, and properly explain to others the implications of that information.

• Asking Thoughtful Questions
• Data Analysis
• Interpretation
• Questioning Evidence
• Recognizing Patterns

Communication

Often, you will need to share your conclusions with your employers or with a group of classmates or colleagues. You need to be able to communicate with others to share your ideas effectively. You might also need to engage in critical thinking in a group. In this case, you will need to work with others and communicate effectively to figure out solutions to complex problems.

• Active Listening
• Collaboration
• Explanation
• Interpersonal
• Presentation
• Verbal Communication
• Written Communication

Critical thinking often involves creativity and innovation. You might need to spot patterns in the information you are looking at or come up with a solution that no one else has thought of before. All of this involves a creative eye that can take a different approach from all other approaches.

• Flexibility
• Conceptualization
• Imagination
• Drawing Connections
• Synthesizing

Open-Mindedness

To think critically, you need to be able to put aside any assumptions or judgments and merely analyze the information you receive. You need to be objective, evaluating ideas without bias.

• Objectivity
• Observation

Problem-Solving

Problem-solving is another critical thinking skill that involves analyzing a problem, generating and implementing a solution, and assessing the success of the plan. Employers don’t simply want employees who can think about information critically. They also need to be able to come up with practical solutions.

• Attention to Detail
• Clarification
• Decision Making
• Groundedness
• Identifying Patterns

More Critical Thinking Skills

• Inductive Reasoning
• Deductive Reasoning
• Noticing Outliers
• Adaptability
• Emotional Intelligence
• Brainstorming
• Optimization
• Restructuring
• Integration
• Strategic Planning
• Project Management
• Ongoing Improvement
• Causal Relationships
• Case Analysis
• Diagnostics
• SWOT Analysis
• Business Intelligence
• Quantitative Data Management
• Qualitative Data Management
• Risk Management
• Scientific Method
• Consumer Behavior

Key Takeaways

• Demonstrate you have critical thinking skills by adding relevant keywords to your resume.
• Mention pertinent critical thinking skills in your cover letter, too, and include an example of a time when you demonstrated them at work.
• Finally, highlight critical thinking skills during your interview. For instance, you might discuss a time when you were faced with a challenge at work and explain how you applied critical thinking skills to solve it.

University of Louisville. " What is Critical Thinking ."

American Management Association. " AMA Critical Skills Survey: Workers Need Higher Level Skills to Succeed in the 21st Century ."

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• What Is Critical Thinking? | Definition & Examples

What Is Critical Thinking? | Definition & Examples

Published on May 30, 2022 by Eoghan Ryan . Revised on May 31, 2023.

Critical thinking is the ability to effectively analyze information and form a judgment .

To think critically, you must be aware of your own biases and assumptions when encountering information, and apply consistent standards when evaluating sources .

Critical thinking skills help you to:

• Identify credible sources
• Evaluate and respond to arguments
• Assess alternative viewpoints
• Test hypotheses against relevant criteria

Table of contents

Why is critical thinking important, critical thinking examples, how to think critically, other interesting articles, frequently asked questions about critical thinking.

Critical thinking is important for making judgments about sources of information and forming your own arguments. It emphasizes a rational, objective, and self-aware approach that can help you to identify credible sources and strengthen your conclusions.

Critical thinking is important in all disciplines and throughout all stages of the research process . The types of evidence used in the sciences and in the humanities may differ, but critical thinking skills are relevant to both.

In academic writing , critical thinking can help you to determine whether a source:

• Is free from research bias
• Provides evidence to support its research findings
• Considers alternative viewpoints

Outside of academia, critical thinking goes hand in hand with information literacy to help you form opinions rationally and engage independently and critically with popular media.

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Critical thinking can help you to identify reliable sources of information that you can cite in your research paper . It can also guide your own research methods and inform your own arguments.

Outside of academia, critical thinking can help you to be aware of both your own and others’ biases and assumptions.

Academic examples

However, when you compare the findings of the study with other current research, you determine that the results seem improbable. You analyze the paper again, consulting the sources it cites.

You notice that the research was funded by the pharmaceutical company that created the treatment. Because of this, you view its results skeptically and determine that more independent research is necessary to confirm or refute them. Example: Poor critical thinking in an academic context You’re researching a paper on the impact wireless technology has had on developing countries that previously did not have large-scale communications infrastructure. You read an article that seems to confirm your hypothesis: the impact is mainly positive. Rather than evaluating the research methodology, you accept the findings uncritically.

Nonacademic examples

However, you decide to compare this review article with consumer reviews on a different site. You find that these reviews are not as positive. Some customers have had problems installing the alarm, and some have noted that it activates for no apparent reason.

You revisit the original review article. You notice that the words “sponsored content” appear in small print under the article title. Based on this, you conclude that the review is advertising and is therefore not an unbiased source. Example: Poor critical thinking in a nonacademic context You support a candidate in an upcoming election. You visit an online news site affiliated with their political party and read an article that criticizes their opponent. The article claims that the opponent is inexperienced in politics. You accept this without evidence, because it fits your preconceptions about the opponent.

There is no single way to think critically. How you engage with information will depend on the type of source you’re using and the information you need.

However, you can engage with sources in a systematic and critical way by asking certain questions when you encounter information. Like the CRAAP test , these questions focus on the currency , relevance , authority , accuracy , and purpose of a source of information.

When encountering information, ask:

• Who is the author? Are they an expert in their field?
• What do they say? Is their argument clear? Can you summarize it?
• When did they say this? Is the source current?
• Where is the information published? Is it an academic article? Is it peer-reviewed ?
• Why did the author publish it? What is their motivation?
• How do they make their argument? Is it backed up by evidence? Does it rely on opinion, speculation, or appeals to emotion ? Do they address alternative arguments?

Critical thinking also involves being aware of your own biases, not only those of others. When you make an argument or draw your own conclusions, you can ask similar questions about your own writing:

• Am I only considering evidence that supports my preconceptions?
• Is my argument expressed clearly and backed up with credible sources?
• Would I be convinced by this argument coming from someone else?

If you want to know more about ChatGPT, AI tools , citation , and plagiarism , make sure to check out some of our other articles with explanations and examples.

• ChatGPT vs human editor
• ChatGPT citations
• Is ChatGPT trustworthy?
• Using ChatGPT for your studies
• What is ChatGPT?
• Chicago style
• Paraphrasing

 Plagiarism

• Types of plagiarism
• Self-plagiarism
• Avoiding plagiarism
• Academic integrity
• Consequences of plagiarism
• Common knowledge

Prevent plagiarism. Run a free check.

Critical thinking refers to the ability to evaluate information and to be aware of biases or assumptions, including your own.

Like information literacy , it involves evaluating arguments, identifying and solving problems in an objective and systematic way, and clearly communicating your ideas.

Critical thinking skills include the ability to:

You can assess information and arguments critically by asking certain questions about the source. You can use the CRAAP test , focusing on the currency , relevance , authority , accuracy , and purpose of a source of information.

Ask questions such as:

• Who is the author? Are they an expert?
• How do they make their argument? Is it backed up by evidence?

A credible source should pass the CRAAP test  and follow these guidelines:

• The information should be up to date and current.
• The author and publication should be a trusted authority on the subject you are researching.
• The sources the author cited should be easy to find, clear, and unbiased.
• For a web source, the URL and layout should signify that it is trustworthy.

Information literacy refers to a broad range of skills, including the ability to find, evaluate, and use sources of information effectively.

Being information literate means that you:

• Know how to find credible sources
• Use relevant sources to inform your research
• Understand what constitutes plagiarism
• Know how to cite your sources correctly

Confirmation bias is the tendency to search, interpret, and recall information in a way that aligns with our pre-existing values, opinions, or beliefs. It refers to the ability to recollect information best when it amplifies what we already believe. Relatedly, we tend to forget information that contradicts our opinions.

Although selective recall is a component of confirmation bias, it should not be confused with recall bias.

On the other hand, recall bias refers to the differences in the ability between study participants to recall past events when self-reporting is used. This difference in accuracy or completeness of recollection is not related to beliefs or opinions. Rather, recall bias relates to other factors, such as the length of the recall period, age, and the characteristics of the disease under investigation.

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Strategic Thinking Definition, Skills, Examples, and Steps

Published: 29 January, 2024

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Welcome to Digital Leadership, where we are committed to harnessing emerging technologies and innovative business models to better serve customers. As experts in innovation and digital transformation, our mission is to guide organizations in creating value for all stakeholders, supporting them from strategic conceptualization to effective execution. The ability to think strategically is a cornerstone for success, strategic thinking centres on discovering and cultivating distinctive opportunities to enhance organizational value.

Digital Leadership’s expertise in strategy and execution, invites business entrepreneurs to delve deeper into the realms of strategic thinking for enduring success. We provide Strategic Management Consulting services to empower businesses to elevate their strategic acumen and navigate the complex landscape of value creation . Through collaborative initiatives, we guide organizations in unlocking unique opportunities and ensuring enduring success in today’s dynamic business environment.

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This article delves into the intricacies of strategic thinking , outlining its definition, key characteristics, and its vital role in both leadership and business. We will explore the steps to develop strategic thinking skills and provide real-life examples to illustrate its application. As we navigate through this exploration, we will differentiate strategic thinking from strategic planning and highlight its significance in digital transformation strategy.

What is Strategic Thinking?

Strategic thinking is centred on identifying and cultivating distinctive opportunities that can generate value for your organization. It asserts that even non-statistically significant data in various forms deserves thorough consideration to inform decisions about the future. It is a multifaceted concept that goes beyond mere planning. It involves the ability to analyze situations, anticipate future trends, and make informed decisions that contribute to an organization’s long-term success.

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The UNITE Perspectives On Strategy – A Framework For Strategic Thinking

Strategic thinking is a crucial element of effective leadership, involving the ability to envision and plan for the future while navigating the complexities of the present. It goes beyond day-to-day tasks, focusing on long-term business goals and adapting to dynamic environments. Strategic thinking and strategic planning, while interconnected, serve distinct roles in organizational development and decision-making. Strategic thinking is a continuous and dynamic mental activity that envisions the future, identifies opportunities, and fosters innovation. It emphasizes creativity, adaptability, and a proactive mindset, laying the conceptual foundation for an organization’s direction.

Strategic planning is a systematic process that translates strategic thinking into actionable plans. It involves setting specific goals, defining measurable objectives, and outlining the steps and resources needed for implementation. While strategic thinking explores possibilities and challenges assumptions, strategic planning focuses on specific actions, resource allocation, and timelines. Strategic thinking is future-oriented and adaptable, providing the vision upon which strategic planning builds the roadmap for organizational development. Both are essential components, working collaboratively to navigate the complexities of the business landscape.

At Digital Leadership, strategic thinking is perceived as the art of proactively shaping an organization’s future. This involves anticipating challenges, recognizing opportunities, and aligning resources effectively. To delve deeper into the intricacies of strategic thinking and its role in crafting innovative business strategies , explore the insights provided in our book, “How to Create Innovation.” It serves as a comprehensive guide, offering valuable perspectives on navigating the dynamic landscape of strategic decision-making and fostering a culture of innovation within your organization.

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Strategic Thinking Skills

Enhancing strategic thinking skills is crucial for effective decision-making and leadership. Here are key skills compiled from various sources:

• Active Listening: Engage attentively to comprehend diverse perspectives.
• Analytical Skills: Utilize data and insights to make informed decisions.
• Implement the Plan: Execute strategies efficiently to achieve business goals.
• Observing and Seeking Trends: Stay vigilant to identify emerging patterns and trends.
• Question Everything: Foster a questioning mindset to challenge assumptions.
• Strategic Thinking: Cultivate the ability to envision and plan for the future.
• Understand the Consequences: Evaluate potential outcomes and impacts.
• Articulate Your Goals Clearly: Clearly express your objectives for better alignment.
• Being Creative: Embrace creativity to generate innovative solutions.
• Communicate Clearly: Convey ideas and strategies with clarity.
• Consider Opposing Ideas: Encourage diverse viewpoints for comprehensive decision-making.
• Critical Thinking: Assess information objectively to make well-founded decisions.
• Get Other Perspectives: Seek input from different sources to broaden your understanding.
• Learn and Improve: Embrace a continuous learning mindset for personal and professional growth.
• Vision and Purpose: Align decisions with a clear vision and overarching purpose.
• Prioritization: Effectively prioritize tasks and goals based on strategic importance.
• Adaptability: Be flexible and adapt strategies to changing circumstances.
• Ask Strategic Questions: Pose insightful questions to deepen strategic insights.
• Be Aware of Bias: Recognize and mitigate personal biases in decision-making.
• Analysis: Break down complex situations into manageable components for analysis.
• Scenario Planning: Anticipate potential scenarios and plan accordingly.

These skills collectively contribute to developing a robust strategic thinking mindset, essential for navigating complex business landscapes.

How to Develop Strategic Thinking Skills

Acquiring the art of strategic thinking is a developed skill, not an innate talent. This section outlines practical steps to guide individuals in enhancing their strategic thinking skills . Tailored for aspiring strategic thinkers and leaders, these steps offer valuable insights to successfully navigate the complexities of the business landscape.

(1) Pose Thoughtful Queries for Strategic Insights

Challenge conventional wisdom by formulating insightful questions that stimulate critical thinking, fostering a deeper understanding of issues and encouraging innovative solutions.

(2) Observe, Reflect, and Stay Informed

Allocate time to observe industry trends and changes, reflecting on these observations to gain valuable insights that inform strategic decisions.

(3) Embrace Diverse Perspectives Through Opposing Ideas

Foster a culture that values diverse viewpoints, actively seeking and considering opposing ideas to formulate well-rounded and robust strategic plans.

(4) Invest in Continuous Learning and Professional Development

Systematically refine strategic thinking skills through continuous learning. Enroll in courses, workshops, or programs dedicated to enhancing strategic thinking.

(5) Master Your Organization and Industry Dynamics

Acquire in-depth knowledge of your organization, industry, and market sector to make informed strategic decisions based on a comprehensive understanding of internal and external factors.

(6) Prioritize Strategic Thinking with Dedicated Time

Schedule specific time slots for focused strategic thinking in your routine. Utilize this time to address fundamental questions about your organization’s direction, challenges, and opportunities.

(7) Effectively Communicate Strategic Insights to Influence

Cultivate strong communication skills to articulate strategic insights clearly. Effective communication is pivotal for gaining support and buy-in for proposed strategic initiatives.

By systematically incorporating these steps into your professional journey, you actively develop and refine your strategic thinking skills. This intentional approach empowers you to confidently navigate the complexities of strategic decision-making.

Strategic Thinking Examples

Strategic thinking manifests in various scenarios, demonstrating its impact on organizational success. Below are real-life examples showcasing how strategic thinking has influenced key decisions and outcomes:

• Distinguish between urgent and important tasks to allocate resources efficiently and achieve optimal outcomes.
• Strategically allocate resources based on the prioritization of tasks, ensuring maximum efficiency and effectiveness.
• Systematically analyze customer feedback to identify trends and insights, informing strategic decisions for product enhancements and customer satisfaction.
• Develop a strategic roadmap by setting both long-term and short-term business goals aligned with the organization’s overarching vision.
• Utilize past sales data to derive insights, identify patterns, and inform strategic decisions for future product development and market positioning.
• Conduct thorough market analysis to identify gaps and opportunities, allowing for strategic entry or expansion into specific market segments.
• Evaluate the alignment between products and market demands, ensuring a strategic fit that resonates with the target audience.
• Develop and implement a deliberate brand positioning strategy that aligns with market trends, consumer preferences, and organizational values.

These examples showcase how strategic thinking is applied across various facets of business operations. By integrating these practices, organizations can foster a strategic mindset, leading to informed decision-making and sustainable success.

In a real-world scenario, imagine a tech company facing fierce market competition and disruptive technological shifts. A strategic thinker in the managerial role would first pinpoint the challenges: intense competition and the impact of tech disruptions. By actively analyzing industry trends and asking crucial questions, such as how to stand out in a crowded market, strategic thinking takes shape.

Encouraging team discussions to gather diverse perspectives ensures a comprehensive understanding of potential strategies. Crafting innovative solutions collaboratively, like exploring unique product features or strategic partnerships, follows. Proactively anticipating future challenges and formulating contingency plans showcase the hands-on nature of strategic thinking.

Effective communication of the strategic vision is crucial. Aligning stakeholders, fostering commitment to the plan, and conveying a well-defined vision are integral. This example highlights that strategic thinking is not just theory; it’s a practical skill with tangible outcomes in navigating complex business landscapes.

What is Strategic Thinking in Leadership

Strategic thinking in leadership goes beyond day-to-day decision-making; it involves a comprehensive approach to envisioning and navigating an organization’s future. It’s the capability of leaders to analyze the current landscape, anticipate future challenges and opportunities, and formulate innovative strategies to drive the organization toward success. Here’s a deeper exploration of what strategic thinking entails in leadership:

• Visionary Leadership: Strategic thinking leaders possess a visionary outlook, setting a clear and inspiring direction for the organization’s future.
• Long-Term Planning: Instead of focusing solely on immediate concerns, strategic leaders plan for the long term, considering sustainable growth and evolution.
• Adaptability: Leaders who think strategically are adaptable, and ready to adjust strategies in response to changing circumstances and market dynamics.
• Risk Management: They evaluate risks meticulously, making calculated decisions that balance potential rewards with potential pitfalls.
• Innovation Advocacy: Encouraging innovation is a key aspect. Strategic leaders foster a culture where novel ideas are valued, leading to continuous improvement.
• Decision-Making: Strategic thinking leaders make decisions based on a holistic understanding of the organization’s goals, industry trends, and competitive landscape.
• Collaborative Approach: They understand the importance of collaboration, seeking input from diverse teams to enhance the quality of strategic decisions.
• Communication Skills: Effective communication is paramount. Leaders articulate the strategic vision in a way that inspires and aligns the entire organization.
• Alignment with Values: Strategic leaders ensure that strategic initiatives align with the organization’s core values and mission.
• Continuous Learning: Leaders committed to strategic thinking engage in continuous learning, staying informed about industry advancements and emerging trends.

In essence, strategic thinking in leadership is about proactively shaping the organization’s future, and making informed choices that lead to sustained success and relevance in a dynamic business environment.

Key Characteristics of Strategic Thinking

Strategic thinking is a multifaceted skill encompassing various key characteristics that contribute to its effectiveness. These attributes set strategic thinkers apart and form the foundation for navigating complex business landscapes. Here are the key characteristics of strategic thinking:

• Forward-Thinking: Strategic thinkers have a future-oriented mindset, anticipating trends, challenges, and opportunities to proactively shape the organization’s destiny.
• Analytical Acumen: The ability to analyze vast amounts of information, discern patterns, and derive meaningful insights is crucial for strategic thinking.
• Innovative Vision: Strategic thinkers embrace innovation, seeking novel solutions and envisioning possibilities that disrupt conventional norms.
• Adaptability: Recognizing the dynamic nature of the business environment, strategic thinkers are adaptable and agile in responding to changes and uncertainties.
• Holistic Perspective: They consider the bigger picture, understanding the interconnectedness of various elements within and outside the organization.
• Risk Assessment: Strategic thinkers evaluate risks objectively, weighing potential rewards against potential drawbacks and making informed decisions.
• Long-Term Orientation: Rather than focusing solely on short-term gains, strategic thinkers prioritize long-term objectives and sustainable growth.
• Open-Mindedness: Embracing diverse perspectives and being receptive to new ideas fosters a climate of creativity and robust strategic planning.
• Effective Communication: Strategic thinkers communicate their vision and plans clearly, ensuring alignment and understanding throughout the organization.
• Results-Driven: Ultimately, strategic thinkers are driven by results, aiming to create lasting value and impact for the organization’s stakeholders.

These key characteristics collectively empower individuals to think strategically, guiding organizations toward success in today’s dynamic and competitive business landscape.

Strategic Thinking in Business

Strategic thinking in the realm of business is a dynamic and critical process that involves the exploration and refinement of existing business models . This approach entails a comprehensive evaluation of the strengths and weaknesses inherent in the current model. By strategically thinking, businesses can foster innovation, identify new revenue streams , optimise operational processes, and adjust to the evolving demands of the market. This strategic perspective is essential for staying competitive and ensuring long-term success in the business landscape.

Applying Strategic Thinking to Business Models

Strategic thinking serves as a catalyst for transforming and optimizing traditional business models. This process entails a meticulous examination of the current model, pinpointing both its strengths and weaknesses. Through strategic thinking, businesses can unleash innovation by exploring novel revenue streams, refining operational processes, and adapting to the ever-changing landscape of market demands. This application of strategic thinking is instrumental in steering businesses towards resilience, growth, and sustained success.

The Business Model Canvas becomes a crucial tool in the strategic thinking process. It provides a visual framework for understanding, designing, and reinventing business models. By leveraging the canvas, organizations gain insights into key components such as value proposition , customer segments, channels , and cost structures. This clarity enhances strategic decision-making and fosters a more agile and adaptive business model.

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The significance of strategic thinking in digital transformation.

In digital transformation, strategic thinking holds immense significance. It serves as the guiding force that shapes and directs the course of digital initiatives. It ensures a holistic approach, considering not only technological aspects but also the broader implications on business models, processes, and customer experiences. By strategically navigating the complexities of the digital transformation strategy , organizations can leverage emerging technologies effectively, enhance operational efficiency, and stay ahead in the competitive digital landscape. The application of strategic thinking becomes a linchpin for organizations aiming to achieve meaningful and sustainable digital transformation outcomes.

Real-Life Examples of Strategic Thinking in Business

To illustrate the tangible impact of strategic thinking, let’s delve into real-life examples where organizations successfully applied this approach to achieve remarkable outcomes.

• Apple Inc.: Apple’s strategic thinking is evident in its continuous innovation and product development. The introduction of the iPod, iPhone, and iPad showcased a forward-thinking approach that revolutionized the consumer electronics industry.
• Amazon: Amazon’s strategic thinking is exemplified in its customer-centric model and diversification. The company started as an online bookstore and strategically expanded into diverse product categories, cloud services (AWS), and even original content creation.
• Tesla: Tesla’s strategic thinking is embodied in its pursuit of sustainable energy solutions. The decision to focus on electric vehicles, solar energy, and energy storage reflects a long-term vision that goes beyond automotive manufacturing.
• Netflix: Netflix’s strategic thinking is evident in its shift from a DVD rental service to a global streaming platform. Embracing digital disruption, Netflix strategically invested in original content creation, transforming the entertainment industry.
• Google: Google’s strategic thinking is showcased in its commitment to innovation. From dominating the search engine market, Google expanded into diverse areas such as online advertising, mobile operating systems (Android), and artificial intelligence.

Differentiating Strategic Thinking from Other Types of Thinking

Thinking is a multifaceted cognitive process that varies across different contexts and objectives. Let’s delve into the distinctions between strategic thinking and other types of thinking:

• Strategic Thinking: Involves envisioning the future, identifying opportunities, and devising plans to achieve long-term goals.
• Critical Thinking: Focuses on analyzing, evaluating, and forming judgments about information or situations, emphasizing logical reasoning.
• Strategic Thinking: Emphasizes planning and decision-making for achieving organizational objectives, often involving a systematic approach.
• Creative Thinking: Involves generating novel ideas, solutions, or approaches, fostering innovation and unconventional thoughts.
• Strategic Thinking: Encompasses a holistic view, considering the overall direction and positioning of the organization.
• Analytical Thinking: Concentrates on breaking down complex problems into smaller components for in-depth examination and understanding.
• Strategic Thinking: Primarily concerned with defining goals, formulating plans, and aligning resources to achieve a predefined vision.
• Design Thinking: Centers around a human-centric approach, empathizing with end-users, and iteratively prototyping solutions for complex problems.
• Strategic Thinking: Focuses on organizational strategy, often involving hierarchical planning and coordination.
• Systems Thinking: Considers the interrelated components and relationships within a system, emphasizing holistic understanding and feedback loops.
• Strategic Thinking: Involves dynamic, adaptive, and non-linear planning, considering various scenarios and external influences.
• Linear Thinking: Follows a sequential and step-by-step approach to problem-solving without necessarily accounting for broader systemic factors.
• Strategic Thinking: Concentrates on forward-looking planning, often in a structured manner, to gain a competitive advantage.
• Lateral Thinking: Encourages unconventional and creative approaches to problem-solving, challenging traditional thought patterns.

Understanding these differences is crucial as it highlights the versatility of thinking processes and underscores the need for a well-rounded cognitive toolkit, incorporating strategic thinking when long-term planning and vision are paramount.

In conclusion, strategic thinking is the compass that guides businesses through the complexities of today’s ever-evolving landscape. By developing and nurturing strategic thinking skills , organizations can pave the way for sustained success and create value for everyone they serve. At Digital Leadership, we are passionate about empowering organizations to embrace strategic thinking. If you’re ready to elevate your strategic approach, contact us today for a transformative journey from strategy to execution.

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Critical thinking definition

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?
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• 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.

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More From Forbes

Don’t let indecision be your decision.

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Founder and CEO of Fintrepid Solutions , an award-winning firm delivering customized solutions to support business growth and sustainability.

Any entrepreneur can spend 10 minutes scanning economic headlines and find conflicting, often polar opposite information on economic indicators and where the economy is headed. It is indeed a puzzling time for the business owner. And while election years typically bring some uncertainty, this time around, all bets are off. A recent Goldman Sachs survey showed that "small business owners are more undecided about the election than the general public."

While still generally optimistic , we are seeing countless business owners slowly continuing down their current path, or not moving at all. On the surface, it makes sense to a degree. The pull of fast growth or a potential business sale feels still too distant to pursue, and on the flip side, operating results are not bad enough to create any back pressure. But this middle ground can be problematic.

I have often described the journey of a small business as climbing a mountain. Sticking with that example, many business owners are sitting in a small camp halfway up Mount Everest. The question is, is a fierce storm ahead? Will the weather clear or just stay consistent? Regardless of the answer, what is critical is active decision-making and a logical, unemotional process to inform those decisions.

If the markets improve, you could quickly find yourself left behind, missing out on critical opportunities. If the markets worsen, you could find yourself in a weakened and precarious position while trying to ride out the storm. Are you ready for either scenario? What would that look like?

Netflix’s Best New Show Has A Perfect 100% Critic Score

Northern lights forecast: here’s where you could see the aurora borealis tonight, are those dragon eggs in ‘house of the dragon’ the ones daenerys has in ‘game of thrones’, assess the current state..

How would you assess your margin for error at present? How would you evaluate your short-term and long-term resources? Have you done a thorough evaluation of your operating margins, your cash on hand, your working capital and your long-term capital position? Are there steps you can take today to start strengthening your position in one or more of these areas?

Critical to this is an understanding of what risks you are self-insuring. Every risk in a business that is not third-party insured, like commercial property or workers' compensation, is self-insured. Is labor a significant piece of your P&L where wage increases could dramatically impact profitability? You are self-insuring that risk. What about the costs of materials like lumber or steel? What about a continued rise in interest rates? Businesses are self-insuring these risks and many others. Do you know what the cost of that self-insurance is?

How is your customer doing? The average individual consumer appears to be losing resiliency . Is your customer buying less? This may be a good time to revisit how you are managing inventories. Perhaps your customers are gearing up for growth themselves. This could be a great opportunity to take advantage of.

What is your competition doing? Are they slashing prices to dump inventory? Are they pulling back altogether? Or are they expanding? That doesn’t mean you should try to match their course. What is essential is understanding what opportunities their actions might create for your business.

Is it time to buy?

You could use this time to take advantage of uncertainty or fatigue among smaller businesses in a vertical or horizontal space by acquiring them . We have worked with numerous companies executing smaller tuck-in acquisitions where they can acquire at a low price and add scale. This can create more stability should a storm arise or more strength to continue to buy and grow. If a buy is too much to take on, or not available, another option is to develop partnerships with complementary businesses. This could be deepening ties with a supplier or partnering with a supplier of complementary or supplementary goods. These partnerships can improve purchasing power, strengthen both companies and even create additional growth opportunities.

Revisit and reconfirm long-term strategy.

Even if there is discomfort or lack of confidence based on what you see around you, know where your North Star is—your long-term strategy. Too many businesses map out a strategy and then effectively put it in a drawer. When was the last time you looked at your three-year or five-year plan? Based on the current state, what steps could be taken on the course to that long-term strategy? A thorough, regular review of that strategy can be helpful to get above a present storm, view the whole surroundings and see what is ahead.

There may be big assumptions that need to be evaluated. Reconfirm your strategy to guide long-term navigation. Execute in the short term to align with that long-term strategy. That could mean investment. That could mean moving further down the mountain to later ascend faster and stronger. That could also mean an intentional pause, but not one by default.

Don’t just sit in slowly boiling water. Make active decisions. Even the active pause is part of a larger decision. Know why you are doing so. Map out scenarios for execution if your market takes off or if it faces headwinds. As I discussed in a previous article, we are big proponents of using “ What if? ” as a powerful tool to explore different paths, what they would mean for the business and what it would take to get there. This allows for confident decision-making, literally creating a map with multiple routes if needed. Be informed, be inquisitive, be open-minded and, most importantly, make decisions. Even if confidence in government or the overall economy is low, it doesn’t need to correlate to your confidence in your team, your business or yourself.

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The Role of Humans in an AI World

• Now more than ever, b-school curriculum needs to complement technical skills with human creativity and other unique characteristics, to enhance the capabilities of both.
• Business educators need to teach students how to think critically about employing AI to identify problems and interpret solutions, rather than allowing AI tools, such as ChatGPT, to determine what’s relevant.
• A new value framework—based on critical thinking and purposeful analysis—can help guide business schools, and accordingly students, to more meaningful solutions.

Ana Freire : [0:15] In my view, AI will replace everything. There are some human characteristics that need to be in place always, such as creativity, or the natural intelligence, the common sense, and many other features inherent from human behavior.

[0:32] We just need to find the way in how to basically combine artificial intelligence and the most wonderful characteristics of human beings in order to multiply the effects that both parts can generate together.

[0:51] Higher education institutions have the responsibility to not just teach the technological content, which is behind artificial intelligence, but also soft skills like communication or critical thinking in order to give the future leaders the opportunity to decide or to augment their own capabilities in order to multiply the effects of artificial intelligence when it's needed.

[1:17] Because maybe not in all environments and in all tasks artificial intelligence will be needed in our work.

Higher education institutions have the responsibility to not just teach the technological content, but also soft skills like communication or critical thinking.

David De Cremer : [1:26] Creativity is seen as something uniquely human. If you look at what creativity is about, it's really finding new solutions to problems that are relevant and meaningful to us.

[1:37] If you use that definition and we apply it to generative AI like ChatGPT, we see that there are a number of skills that our educators should train. First of all, ChatGPT provides solutions, it generates solutions, but who phrases the question? A human.

[1:54] It's about identifying a problem and then specifying in a question. It generates something, but who interprets what is generated? A human as well, because it needs to be seen as meaningful and relevant to a human. These are two important skills.

[2:10] Identifying the question relates to use generative AI in a way that you push our students to think critically. What are the big business questions? What are the big questions in life that business can help? Those are the problems that we define.

[2:24] That's related to what we call prompt engineering as well. If you know the right question, do you also know how to prompt ChatGPT to come up with an answer that's relevant?

Prompt engineering is a good skill to have, but it's not the job of the future.

[2:35] Prompt engineering is not the job of the future, I must say. Some people think it still is the case, but you have to remember ChatGPT is probabilistic. It's not deterministic, which means sometimes even with the same prompt, it may generate a different answer.

[2:52] Prompt engineering is a good skill to have, but it's not the job of the future. The job of the future in my view, is much more looking at what has been generated when you ask the right kind of question. That's based on your own purpose, what kind of value you want to create.

[3:06] That's why critical thinking about what is it that I'm doing, what is the value of my business, is important because you interpret from that framework. What's going to be the job of the future is really a content analyst.

[3:17] As humans, we participate in the real world. AI doesn't, so we assess the relevance and the meaning of it, and we can do so because we are active participants.

[3:28] Being a content analyst, knowing this is an outcome that ChatGPT generated, how can I transfer that into knowledge that I can use to come up with a solution for a problem? Those are skills that as educators, we really need to foster and ChatGPT is a very helpful tool to help in that process.

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How to Demonstrate Your Strategic Thinking Skills

• Nina A. Bowman

Don’t be shy about bringing your ideas to the table.

Developing your strategic thinking skills isn’t enough to get you promoted. In order to advance in your career, you need to demonstrate them. Leaders want to know what you think, and they view your worthiness for promotion through the lens of how ready you are to make bigger decisions. Ask yourself: “Do people know where I stand?” If not, what do you need to do to bring your perspective to the table? It’s also important to demonstrate that you can put new ideas into action. Take the initiative on new projects that show how your understanding extends beyond your current function.

We all know that developing strategic thinking skills is important , but many don’t realize how critical it is to your career advancement to show these skills to your boss and other senior leaders. Showing strategic thinking skills tells your bosses that you’re able to think for yourself and make decisions that position the organization for the future. It assures them that you aren’t making decisions in a vacuum but are considering how other departments might be affected or how the outside world will respond.

• NB Nina A. Bowman is a Managing Partner at Paravis Partners, an executive coaching and leadership development firm. Previously, she held various advisory and leadership roles in strategy. She is an executive coach and speaker on issues of strategic leadership, leadership presence, and interpersonal effectiveness. She is also a contributing author to the HBR Guide to Coaching Employees and HBR Guide to Thinking Strategically .

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The Supreme Court strips the SEC of a critical enforcement tool in fraud cases

People walk past the Supreme Court on Thursday, June 27, 2024, in Washington. (AP Photo/Mark Schiefelbein)

Broadcast media equipment is set up outside the Supreme Court on Thursday, June 27, 2024, in Washington. (AP Photo/Mark Schiefelbein)

Law enforcement officers stand behind barricades outside the Supreme Court on Thursday, June 27, 2024, in Washington. (AP Photo/Mark Schiefelbein)

A Supreme Court police officer talks with a demonstrator at a barricade outside the Supreme Court on Thursday, June 27, 2024, in Washington. (AP Photo/Mark Schiefelbein)

The Supreme Court building is seen on Thursday, June 27, 2024, in Washington. (AP Photo/Mark Schiefelbein)

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WASHINGTON (AP) — The Supreme Court on Thursday stripped the Securities and Exchange Commission of a major tool in fighting securities fraud in a decision that also could have far-reaching effects on other regulatory agencies.

The justices ruled in a 6-3 vote that people accused of fraud by the SEC, which regulates securities markets, have the right to a jury trial in federal court. The in-house proceedings the SEC has used in some civil fraud complaints, including against Houston hedge fund manager George Jarkesy, violate the Constitution, the court said.

“A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator,” Chief Justice John Roberts wrote for the court’s conservative majority.

Justice Sonia Sotomayor, who read from her dissent in the courtroom, said that “litigants who seek to dismantle the administrative state” would rejoice in the decision.

Federal agencies that oversee safety in mines and other workplaces are among many that can only impose civil penalties in in-house, administrative proceedings, Sotomayor wrote, joined by Justices Ketanji Brown Jackson and Elena Kagan.

“For those and countless other agencies, all the majority can say is tough luck; get a new statute from Congress,” she wrote.

The case is among several this term in which conservative and business interests are urging the nine-member court to constrict federal regulators. The court’s six conservatives already have done so, including in a decision last year that sharply limited environmental regulators’ ability to police water pollution in wetlands.

Still awaiting decision are cases calling on the court to overturn the 40-year-old ruling colloquially known as Chevron, which has made it easier to sustain regulation of the environment, public, health, worker safety and consumer protection. Some of the same parties that supported Jarkesy at the Supreme Court are calling for Chevron to be overturned.

The SEC was awarded more than $5 billion in civil penalties in the 2023 government spending year that ended Sept. 30, the agency said in a news release. It was unclear how much of that money came through in-house proceedings or lawsuits in federal court.

The agency had already reduced the number of cases it brings in administrative proceedings pending the Supreme Court’s resolution of the case.

The high court rejected arguments advanced by President Joe Biden’s Democratic administration that relied on a 50-year-old decision in which the court ruled that in-house proceedings did not violate the Constitution’s right to a jury trial in civil lawsuits.

The justices ruled in favor of Jarkesy after the SEC appealed a decision in which the New Orleans-based 5th U.S. Circuit Court of Appeals threw out stiff financial penalties against Jarkesy and his Patriot28 investment adviser.

The appeals court found that the SEC’s case against Jarkesy, resulting in a $300,000 civil fine and the repayment of $680,000 in allegedly ill-gotten gains, should have been heard in a federal court instead of before one of the SEC’s administrative law judges.

Jarkesy’s lawyers noted that the SEC wins almost all the cases it brings in front of the administrative law judges but only about 60% of cases tried in federal court.

The appeals court also said Congress unconstitutionally granted the SEC “unfettered authority” to decide whether the case should be tried in a court of law or handled within the executive branch agency. And it said laws shielding the commission’s administrative law judges from being fired by the president are unconstitutional.

Those issues got virtually no attention during arguments in November , and the court chose to resolve the case only on the right to a jury trial.

Follow the AP’s coverage of the U.S. Supreme Court at https://apnews.com/hub/us-supreme-court .