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Why your business needs critical thinking.

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Cultivating critical thinking skills should be a top priority for any business that wants to succeed in today’s complex and rapidly changing world.

According to the World Economic Forum, “analytical thinking, creativity, and flexibility will be among the most sought-after skills” by 2025, yet few companies invest in such training.

Critical thinking is an essential skill that enables individuals to analyze, evaluate, and synthesize information to make informed decisions. In today's fast-paced, complex, and dynamic work environment, critical thinking is more critical than ever before. It is crucial for organizations to prioritize critical thinking skills among their employees to make well-informed decisions and stay ahead in the competitive market.

Critical thinking skills are needed in every business today.

Rapid technological advancements, globalization, and economic uncertainties have created complex challenges for most businesses. Critical thinking skills are essential to successfully navigating this complexity and uncertainty. Critical thinkers can examine challenges and opportunities three-dimensionally in the broader business context, and they can analyze relevant information to develop a plan of action to address it. Critical thinking enables employees to consider multiple perspectives and potential outcomes of different decisions, leading to better choices that are more likely to succeed.

The ability to evaluate information, data, and facts is important in making informed decisions. Employees who lack basic critical thinking skills may be prone to making decisions based on assumptions, biases, or incomplete information. That often leads to poor decisions. On the other hand, employees who possess critical thinking skills are better equipped to weigh options, analyze the pros and cons of each decision, and make decisions based on factual and reliable information. Such decisions can lead to better outcomes for the organization, resulting in improved productivity, increased revenue, and better customer satisfaction.

In addition to decision making, critical thinking is also essential to problem solving – a key capability for leaders every level.

In the workplace, issues can arise at any time, and managers must be able to identify, analyze and address these problems quickly and efficiently. Critical thinking skills can help leaders identify the root cause of the problem and evaluate different options to solve it. This process can lead to innovative and effective solutions to complex problems that may have otherwise been overlooked or dismissed.

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Finally, critical thinking is vital for effective communication in the workplace.

Employees who can analyze and evaluate information can communicate it effectively to their colleagues and superiors. Critical thinking skills enable employees to articulate their ideas, share their opinions, and offer constructive feedback, leading to improved collaboration and team productivity. Employees who lack critical thinking skills may struggle to communicate their thoughts effectively, leading to misunderstandings, miscommunication, and conflicts.

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

The cultivation of critical thinking skills in the workplace requires investment in training and development programs that equip employees with the necessary tools and techniques to analyze and evaluate information effectively. But the result will be a more efficient, innovative, and productive workforce that can navigate complex challenges and drive success for the organization.

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Why Critical Thinking Matters in Your Business

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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Article • 8 min read

Critical Thinking

Developing the right mindset and skills.

By the Mind Tools Content Team

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

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

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

What Is Critical Thinking?

Critical thinking is the discipline of rigorously and skillfully using information, experience, observation, and reasoning to guide your decisions, actions, and beliefs. You'll need to actively question every step of your thinking process to do it well.

Collecting, analyzing and evaluating information is an important skill in life, and a highly valued asset in the workplace. People who score highly in critical thinking assessments are also rated by their managers as having good problem-solving skills, creativity, strong decision-making skills, and good overall performance. [1]

Key Critical Thinking Skills

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

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

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

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

Logical Thinking

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

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

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

Self-Awareness

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

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

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

Developing a Critical Thinking Mindset

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

Gather Information

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Critical Thinking Infographic

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

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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.

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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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About the author

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

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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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Improve Your Critical Thinking Skills

To make good decisions, it’s important to think critically. And, yet, too many leaders accept the first solution proposed to them or don’t take the time to evaluate a topic from all sides. To guard against these mistakes, there are several things you can do to hone your critical thinking skills. First, question your assumptions, […]

To make good decisions, it’s important to think critically. And, yet, too many leaders accept the first solution proposed to them or don’t take the time to evaluate a topic from all sides. To guard against these mistakes, there are several things you can do to hone your critical thinking skills. First, question your assumptions, especially when the stakes are high. If you’re coming up with a new business strategy, for example, ask: Why is this the best way forward? What does the research say about our expectations for the future of the market? Second, poke at the logic. When evaluating arguments, consider if the evidence builds on itself to produce a sound conclusion. Is the logic supported by data at each point? Third, seek out fresh perspectives. It’s tempting to rely on your inner circle to help you think through these questions, but that won’t be productive if they all look and think like you. Get outside your bubble and ask different people to question and challenge your logic.

Source: Adapted from “3 Simple Habits to Improve Your Critical Thinking,” Helen Lee Bouygues

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

Table of Contents

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

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

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

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

What is critical thinking?

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

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

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

5 ways to improve your critical thinking in business

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

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

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

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

1. Question basic assumptions

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

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

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

2. Examine alternate points of view

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

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

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

3. Be aware of your biases and mental processes

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

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

Some of the most common biases to overcome are:

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

4. Reverse your approach

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

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

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

5. Evaluate existing evidence

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

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

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

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

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

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

Critical thinking skills result in better business decisions

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

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

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

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

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

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

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

What is critical thinking? 

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

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Top 8 critical thinking skills

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

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

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

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

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

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

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

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

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

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

7 steps to critical thinking

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

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

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

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

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

1. Identify the problem

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

What’s happening? 

Why is this happening? 

What assumptions am I making? 

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

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

2. Research

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

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

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

3. Determine data relevance

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

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

To determine data relevance, ask yourself:

How reliable is this information? 

How significant is this information? 

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

4. Ask questions

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

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

Before coming to a solution, ask yourself:

Am I making any assumptions about this information? 

Are there additional variables I haven’t considered? 

Have I evaluated the information from every perspective? 

Are there any viewpoints I missed? 

5. Identify the best solution

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

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

6. Present your solution

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

7. Analyze your decision

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

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

Example of critical thinking in the workplace

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

Start by identifying the problem

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

Gather information about how the problem started

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

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

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

Where are users getting stuck on the page?

Are any features currently working?

Then, you research

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

Ask yourself: 

How have our competitors set up their pricing pages?

Are there any pricing page best practices? 

How does color, positioning, and animation impact navigation? 

Are there any standard page layouts customers expect to see? 

Organize and analyze information

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

Ask open-ended questions to reduce bias

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

Is there anything I’m missing? 

Have I connected with the right stakeholders? 

Are there any other viewpoints I should consider? 

Determine the best solution for your team

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

Present your solution to stakeholders

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

Analyze the results

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

Critically successful 

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

Related resources

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Is critical thinking a future skill for business success: science mapping and literature review

Central European Management Journal

ISSN : 2658-0845

Article publication date: 17 May 2023

Issue publication date: 30 May 2023

This article aims to review critical thinking (CT) as a future skill in business.

Design/methodology/approach

The study employed two research methods: science mapping analysis based on bibliometric keyword co-occurrence data and systematic literature review following PRISMA guidelines. The application of two distinctive research methods meant that we could obtain a broad picture thematic overview as well as a detailed, fine-grained insight into the content of CT business research.

Research in CT in business studies is dominated by themes related to education, university and learning that far outweigh CT business application, which focuses on three research axes. These are specific business functions (e.g. accounting, marketing, human resources and identifying business opportunities), certain skills used in business (e.g. decision-making and creativity) and other business-related topics (including ethics, stakeholder relations and individual employee performance).

Practical implications

The article identifies new research gaps related to the link between CT and business performance, a firm’s ability to innovate and company characteristics. Moreover, the article highlights that CT positively influences business decision-making under the influence of cognitive biases and heuristics.

Originality/value

The article provides the first literature review on CT in business research. It uses a novel method of science mapping analysis to show unbiased algorithmic-based insight into the structure of the research, followed by a systematic literature review.

• Critical thinking
• Science mapping
• Systematic literature review
• Future skill

Skrzek-Lubasińska, M. and Malik, R. (2023), "Is critical thinking a future skill for business success: science mapping and literature review", Central European Management Journal , Vol. 31 No. 1, pp. 48-63. https://doi.org/10.1108/CEMJ-09-2021-0110

Emerald Publishing Limited

Copyright © 2023, Małgorzata Skrzek-Lubasińska and Radosław Malik

Published in Central European Management Journal . Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

The social and economic shifts in the contemporary world put strong pressure on labor markets, including progress in AI applications ( Vrontis et al. , 2021 ), migration ( Mak, Roberts, & Zimmerman, 2021 ), climate change ( Berrang-Ford et al. , 2021 ) and rising life expectancy ( Schneider & Langen, 2021 ) identified as crucial drivers of the change ( Balliester & Elsheikhi, 2018 ; Malik & Janowska, 2018 ). It is predicted that 65% of children entering education today will work in jobs that do not yet exist ( WEF, 2016 ). In times of constant change, replenishing knowledge and skills is essential to remain competitive ( OECD, 2017b ). Therefore, the crucial problem is to recognize competencies that will be required by business and will provide employees with a competitive advantage in the future ( Visvizi, Lytras, & Daniela, 2018 ). A review of analyses regarding key future competencies shows the growing importance attached to the competence of critical thinking (CT) ( Palacios-Huerta, 2013 ; EC, 2016 ; Bakhshi, Downing, Osborne, & Schneider, 2017 ; Janowska & Skrzek-Lubasińska, 2019 ; Visvizi, Jussila, Lytras, & Ijäs, 2020 ).

What are the principal themes researched in CT-related studies in business literature?

What is the insight gained from the key articles about the application of CT in business?

The article consists of five sections. After the Introduction above, we will discuss the importance of CT as a fundamental future skill in business and its key dimensions so as to demonstrate the rationale for the presented study. Next, we will elaborate on the two research methods applied in the study, along with research limitations. The following section presents the study findings, and the article closes with a discussion and conclusions.

2. Critical thinking as a future skill

According to the European Council, the key skills that will create resilience against changes in the labor market and will be particularly valuable are CT, creativity, communication and collaboration ( EC, 2016 ). These skills are also recognized by other researchers, and they are dubbed the 4Cs ( Lamri, 2018 ). A World Economic Forum Report ( WEF, 2020 ) lists CT among the top 10 skills of 2025, including such skills as active learning, creativity, leadership, social influence and technology use. The OECD (2017a) places CT in the group of key cognitive skills. In a European Commission Report, Gonzalez Vazquez et al. (2019) call CT a meta-cognitive skill.

CT skills are often combined with problem-solving ( Edmond, 2017 ) as a bundled set of skills that highlights the practical and applicational edge of CT ( Heckman, 2008 ; Cunningham & Villaseñor, 2016 ; Sousa & Wilks, 2018 ). However, in the OECD Employment Outlook 2020, the two skills are separated, and CT alongside complex problem-solving is recognized as a transversal skill ( OECD, 2020 ). In an attempt to define this distinction further, Lamri (2018) states that CT enables solving problems using available knowledge, known facts and available data and logic.

the ability to develop and the ability for lifelong learning ( OECD, 2017b );

the ability to think strategically and apply rules to new situations to solve problems ( OECD, 2017b );

the skill of CT enabling individuals to proactively and effectively deal with non-routine challenges ( OECD, 2015 );

the ability to undertake analysis and synthesis (to go through large amounts of available information, evaluate it and make judgments; OECD, 2017b );

the ability to use logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems as well as assess one’s own performance, others’ performance, or the performance of organizations to make improvements or take corrective action ( WEF, 2020 );

the ability to identify and select information due to access to almost unlimited information resources ( Lamri, 2018 );

the ability to analyze and evaluate arguments according to their soundness and credibility, respond to arguments and reach conclusions through deduction based on certain information ( Tiruneh, Verburgh, & Elen, 2014 ).

As the line between the concepts of skills and abilities remains debated, and opinions vary in their views on CT attributes, we adopted the following operational definition of CT for the purpose of our study: CT in business means the skills to identify and select information, undertake their analysis and synthesis, and utilize them to solve business problems by proactively and effectively dealing with non-routine challenges to achieve strategic goals . Thus, when analyzing CT in business, we adopted a skill-based definition instead of a general one to provide a more focused analysis.

Most agree that CT is of vital and amplifying importance for business success, and its features are “hard to measure, but essential to the success of individuals and firms” ( OECD, 2017a , p. 9). This calls for a review of the current state of the art so as to build an indispensable foundation for future research. Moreover, due to the complexity of the matter, we believe it is advisable to apply both novel and more conventional research methods to achieve more sophisticated insight.

3. Materials and methods

This article employed two methods to address the research questions. To answer the first research question, we used a science mapping analysis based on bibliometric keyword co-occurrence data. Moreover, a systematic literature review with the support of PRISMA guidelines was applied to address the second research question.

3.1 Science mapping analysis

Science mapping is a graphic representation of knowledge areas ( Small, 1990 ). It uses automated algorithmic systems to analyze keywords to provide unbiased insight into the research subject based on the frequency at which two keywords appear together ( Su & Lee, 2010 ). We utilized the SciMAT software to gain insight into the interaction between article keywords in the analyzed pool to generate a list of key themes ( Santana & Cobo, 2020 ). Each theme was characterized by two dimensions: centrality and density ( Callon, Courtial, & Laville, 1991 ). Centrality represents the extent of an interaction between the theme in question and all other themes. Therefore, centrality provides an insight into the strength of the thematic network’s external ties (ties with other themes). Consequently, centrality is considered to be the degree of the theme’s importance in the research area. Density explores the internal strength of the theme, namely the strength of links between the number of co-occurring keywords that are part of the theme (ties inside the theme). Density is considered a degree of theme development. The higher the density, the more concentrated the research on the theme ( Santana & Cobo, 2020 ). SciMAT allocates themes based on their centrality and density into a strategic diagram. The strategic diagram is divided into quadrants representing four types of themes: motor, basic, specialized and emerging themes ( Gutiérrez-Salcedo, Martínez, Moral-Muñoz, Herrera-Viedma, & Cobo, 2018 ). The strategic diagram template is presented in Figure 1 .

Motor themes have a high level of centrality and density, so they are considered well-developed and important for the research area. Thus, motor themes are viewed as a major contribution to the research area. Basic themes are characterized by high centrality and low density. Therefore, they are considered important but not key contributions to the research area. Specialized themes represent themes with low centrality and high density, so they are internally well-developed but not strongly linked to other themes. Hence, they make a limited but focused contribution to the research area. Emerging themes have a low degree of centrality and density, which illustrates their relatively insignificant internal and external development. Each theme is represented on the diagram by a sphere. The sphere size can refer to various bibliometric indicators, while in our study it indicated the number of articles with the keyword used as a label of the sphere. The label of the sphere is the keyword with the highest occurrence frequency in a network of articles in the theme ( Santana & Cobo, 2020 ).

Science mapping analysis is a new kind of bibliometric analysis, but it has already been applied in the field of business and economic research. The same method – including SciMAT software and the use of strategic diagram analysis – was applied to research into a significant array of topics, including gig-economy ( Malik, Visvizi, & Skrzek-Lubasińska, 2021 ), the future of work ( Santana & Cobo, 2020 ), big data ( López-Robles, Rodríguez-Salvador, Gamboa-Rosales, Ramirez-Rosales, & Cobo, 2019 ) and creativity in business economics ( Castillo-Vergara, Alvarez-Marin, & Placencio-Hidalgo, 2018 ).

In this research, bibliometric data was obtained through the Web of Science (WoS) database, while the sample used in this study was limited to published articles. The sample for our study comprised 1074 WoS-indexed articles published between 1992 and 06.2021 These texts covered a total of 3419 unique keywords, and these keywords – together with their co-occurrence – were subjected to the algorithmic analysis with the SciMAT software. Then, we searched in the articles selected for the analysis for keywords “critical thinking” in all fields. The query scope was limited to articles in the field of business study.

3.2 Systematic literature review

To answer the research questions, we analyzed the existing scientific research and conducted a systematic literature review. To ensure the robustness of the review results and safeguard the consistency of the process, we followed the latest guidelines ( Page et al. , 2021 ) for Preferred Reporting Items for Systematic Review and Meta-Analysis (PRISMA; Moher et al. , 2015 ). Therefore, we developed a review protocol describing the article selection criteria, search strategy, data extraction and data analysis procedures. The key part of the data analysis procedure followed a three-step process, which comprised identification, screening for eligibility and inclusion of other texts.

In the initial phase, article selection criteria were established. To ensure a broad scope of the search and cover diversified insight from various sources for this systematic review – including research articles, public intuition papers and commercial reports – our search strategy used the Google Scholars database as the primary source of information. We noticed that not all texts included in this database undergo the same rigorous scientific verification procedure as in WoS. However, the texts in our research were validated and analyzed by the authors in a course of further PRISMA steps to ensure the high quality of data input. Moreover, regarding a more focused scope of systematic literature review compared to science mapping analysis, more conservative criteria were adopted in the next steps of the review process.

In the search strategy and extraction phases, the initial step of the review was performed on July 13, 2021, when articles with the phrase “critical thinking” and the word “business” in the title of the article were selected from the Google Scholar database. To fine-tune the results to the use of CT in business, we applied the exclusion criterium. In this step, the texts related to CT in business education were removed from the scope of our search by excluding texts with the following words in the title: “school,” “course,” “student,” “teaching,” “learning,” “curriculum,” and “education.” We did not use any additional inclusion criterium for our search. We found that 256 articles meet the original criteria and directed them to the data analysis phase for identification. By applying the exclusion criterium related to CT in business education, 212 articles were removed from the scope of our search while six texts were inaccessible. Consequently, a total of 38 articles remained in our database with potentially important insight into the application of CT in business.

However, the screening of the texts for eligibility further limited the number of articles to 15, because 23 texts provided no valuable insight into CT in business, usually because the term “critical thinking” was used in these texts in a different context, mostly to show that the authors thoroughly scrutinize their research subject. In the group of 23 excluded texts, 16 texts were excluded due to insufficient focus (e.g. CT used in colloquial meaning or in a context unrelated to the research field) and seven texts were excluded on the grounds of limited scientific rigor (e.g. lack of peer review process).

Six texts were included in the research based on references from primary studies. As a result, the insight from 21 texts is presented in the next section of this article. The selection process is summarized in Figure 2 .

3.3 Limitations

This study used multiple research methods to address research limitations. However, this study was not devoid of embedded limitations related to applied research methods and other limitations related to the scope of the study. Three limitations are highlighted and discussed in this part of the text.

First, science mapping as a method of analysis assumes that the content of the texts is adequately represented by the keywords provided by the articles’ authors. In this view, the outcome quality relies on input data quality. Input quality cannot be monitored during research that employs this method. Nevertheless, to address this limitation, other research methods can be deployed, and in the case of this research, science mapping analysis was followed by a systematic literature review.

Second, the findings of science mapping and systematic review depend on the choice of language of the scrutinized texts and the selection of databases. Despite the dominance of the English language in scientific literature, the exclusion of non-English articles adversely still affected the quality of this study.

Third, the use of specific databases and queries raises questions of inclusion, exclusion and bias. This study used the WoS database for science mapping and Google Scholar for the systematic literature review. Science mapping requires a list of keywords as article attributes. As Google Scholar does not have the keyword function, it cannot be used for this purpose. On the other hand, we preferred Google Scholar as it has a broader scope than WoS, which maximized the scope of the systematic literature review. However, the use of other databases such as Scopus would have further enhanced the study quality.

4. Findings

Application of the two distinctive research methods to analyze CT in business provided a detailed assessment of the research subject and allowed for capturing both overviews of the research landscape through science mapping and the more fine-grained insight through systematic literature review.

4.1 Science mapping

The science mapping analysis of the bibliometric data with the support of SciMAT software – based on keyword co-occurrence – allowed us to generate the following strategic diagram for CT studies presented in Figure 3 .

Eleven themes were identified and mapped in CT research. The size of the theme sphere was proportional to the document number covered by the theme, while their allocation in the diagram was a derivative of theme centrality (importance in the research) and density (degree of development in the research). CT science mapping analysis using a strategic diagram allowed us to identify three motor themes (university, skills and creativity), three basic themes (education, experimental learning and perspective), three specialized themes (personality, assessment and impact) and two emerging themes (ethics and perceptions).

The results indicated that the research on CT in business literature was dominated by themes related to education and learning, mostly tertiary. This vein was represented by one motor theme with the highest density and centrality, namely “university,” and two basic themes: “education” and “experimental learning.” The second important perspective used in CT research in business studies was related to CT as a skill, along with its connection with other skills and attributes of personality. This stream of literature was identified based on two motor themes – “skills” and “creativity” – and one specialized theme: “personality.” The application of CT to business practice was represented by a limited number of themes, and this line of research could be traced in “impact” as a specialized theme and “ethics” as an emerging theme. Moreover, the science mapping results showed that researchers attempted to analyze and assess CT from various perspectives indicated by the themes such as “perspective,” “assessment,” and “perceptions.”

The review of science mapping results provided a bigger picture of the studies related to CT in business literature and demonstrated an elaborate overview of the state of the art in CT research, revealing that researchers approached CT from a number of perspectives. Moreover, the review suggested that there was no research into the application of CT to business practice. This became especially apparent compared to more mature research perspectives related to education and learning, along with CT as a skill. On the one hand, the science mapping results showed a promising but broad area for further research related to the application of CT in business and business practice. On the other hand, the results called for a more fine-grained analysis of the body of research that would be directly related to CT in business, thus allowing for an overview of the current state of the art and identification of more focused research areas.

4.2 Systematic literature review

The application of a systematic literature review allowed us to prepare a detailed and focused analysis of CT in business. The application of PRISMA resulted in a decrease in the initial number of articles to only 38 texts once education-related texts were excluded. Following the application of further exclusion and inclusion criteria, 23 texts were excluded due to insufficient focus and lack of scientific rigor and six new texts were added based on references from primary studies. Thus, the final number of texts analyzed in this systematic analysis was 21 as shown in Annex 1 .

The research on teaching CT far outweighs research on CT in business practice. This has already been observed by Dwyer, Boswell, and Elliott (2015 , p. 260) who state that “there is a dearth of research on individuals” CT development and performance after university, “… and especially, in the working world.” This gap is puzzling, as CT is associated with crucial business applications, e.g. the ability to assess the situation in conditions of uncertainty ( Halpern, 2003 ; Butler et al. , 2012 ). In this case, research on combining business activity with CT skills should be particularly important.

application to business functions;

part of a skillset used in business;

other business-related topics.

Business areas in which CT was researched at the business function level include accounting, marketing, human resources and business opportunity identification. Scholars showed that the application of CT in accounting allows for the appropriate construction of accounting systems, which increases profits thanks to appropriate information ( Ikbal, Paminto, Darma, Ulfah, & Ilmi, 2020 ). Others revealed that the application of CT skills to marketing – especially advertising and promotion – increase their effectiveness by enabling businesses to reach intended target groups more efficiently ( Kraus, Harms, & Fink, 2010 ). CT skills improve the quality of business opportunity identification through active information search ( Sugito, Kamaludin, Pramaditya, & Putri, 2020 ), as these can be used as a framework for evaluating new product concepts and developing unique product designs ( Eggers, Lovelace, & Kraft, 2017 ).

Moreover, some mention the application of CT might be beneficial for business, but these elements were not analyzed, including covers risk management ( Chartrand, Ishaikawa, & Flander, 2009 ), organizational planning ( Chartrand et al. , 2009 ) and strategic planning ( McKee, 2020 ). Consequently, these texts do not provide insight into the application of CT in business, yet such areas should be considered as a research gap for future research.

Furthermore, studies showed that CT refers to several other skills used in business practice, such as creativity, problem-solving, information selection and evaluation and decision-making. The studies linking CT to creativity in business revealed its positive influence on a variety of business performance indicators. In this vein, CT emerged as beneficial to creativity – measured as the number of product designs – and business performance, namely the ability to effectively manage firm resources ( Eggers et al. , 2017 ). Others discovered that CT combined with creativity increases a firm’s financial performance ( McMullan and Kenworthy, 2014a , b ). Studies related to problem-solving ( Kahneman & Frederick, 2002 ) found that those different business problems require different proportions of qualitative (via intuition) versus quantitative analysis (i.e. models based on quantifiable factors, objectives and constraints), as CT involves objective quantitative analysis. The literature focused on the application of CT to the selection and evaluation of information in business practice recognizes that CT is essential to the selection of a huge amount of information to evaluate and connect the information as necessary for business ( McKee, 2020 ). Moreover, Wertz et al. (2013a , b) found that CT helps to identify what information is needed, accurately document information and evaluate its reliability.

The application of CT to decision-making in business is an important research area with a significant number of scientific texts. The primary objective of this research is to evaluate the extent to which CT helps in making better business decisions ( Williams, 2002 ; Dobbs & Hamilton, 2007 ; Ayad, 2010 ; Deane & Borg, 2011 ; Dwyer et al. , 2011 , 2014 ) According to Dwyer et al. (2015 , p. 261), CT “enables individuals to act independently; analyze and evaluate data in order to draw conclusions; and thus, make the inferences, judgments and decisions necessary to take action.” Chartrand et al. (2009) argue that CT helps to make adequate decisions, because it requires focusing on the most relevant information, asking the right questions and separating reliable facts from false assumptions.

The effectiveness of developing CT skills is a crucial research area addressed, among others, by Anderson and Reid (2013) , who showed that a long-term approach to CT skills development resulted in the successful acquisition of CT knowledge, skills and strategies. The developed CT skills were subsequently applied by the respondents in their professional lives and other areas as well. This skill transfer to real-life work-related situations was validated by respondents’ qualitative descriptions about their use of CT. Therefore, our study creates an important foundation for future research into the effectiveness of CT skills.

The use of CT in business decision-making is frequently studied in the specific area of judgment under the influence of cognitive biases and heuristics. In this light, CT is researched as a potential remedy to avoid biases and heuristics. With the use of Kahneman’s System 2 (slow thinking), CT may improve the quality of reasoning and decision-making ( Kahneman, 2011 , pp. 20–26). Critical thinkers as experts tend to use rational thinking rather than intuition to avoid making elementary errors ( Williams, 2002 ; Dwyer et al. , 2015 ; qtd. after Tversky & Kahneman, 1974 ; Kahneman & Frederick, 2002 ). In turn, Ayad (2010 , p. 562) notices the usefulness of CT in avoiding business mistakes: “critical thinking could guard the judgment from biases, bad data, wrong interpretation, and fallacies in reasoning. Furthermore, CT has the capacity to explore the context of situations, and provides a broad platform for understanding patterns, consequences, and risks.”

The third important area in business research that engenders studies on CT encompasses other subjects, unrelated to business functions and skills, including business ethics, stakeholder dialog and individual employee performance.

Several studies address the connection between ethical behavior in business and CT skills ( Mahin, 1998 ; Seele, 2018 ; Boda, 2019 ). Seele (2018) suggests that we should make CT the common denominator of all business ethics activities. Seele’s study combines CT with corporate social responsibility, sustainability and corporate citizenship, recognizing CT in the application of business ethics and observing that CT “helps to challenge different notions and contest business activities as not serving the best sort of life and offers mental models, moral imagination, and system thinking” ( Seele, 2018 , p. 564).

A crucial study by Rear (2008) , about the role of CT in facilitating dialog between businesses and government, shows that non-conformity resulting from CT can destabilize an organization, whether it is a company or a state. On the one hand, CT supports innovation and creativity, but on the other hand, it becomes a challenge to the stability of traditional social and economic structures.

Although direct relationship between CT and business performance remains to be researched in detail, some studies indicate that CT is positively correlated with business achievement. Dwyer et al. (2015) indicated that managers, supervisors, or business owners who hold more senior positions in a company scored significantly higher on business-related CT than company employees. By applying the CT definition used by Facione (1990 , p. 11) – which proposes that CT is a structured approach to problem-solving that includes collecting, segregating and analyzing information and evaluating results – Birkan and Yaşar (2021) compared the disposition of managers and white-collar employees to CT. The results of their studies revealed a moderate level of CT skills in both groups and showed that there were no statistically significant differences in this skill set between these two groups. The study is a rare example of a structured approach to analyzing CT and its link to business achievements, along with the application of mixed research methods – both qualitative and quantitative – that increases the reliability of the findings. Based on their study findings the authors propose a greater focus on the rollout of CT training in workplaces ( Birkan & Yaşar, 2021 ).

5. Discussion and conclusions

Currently, the world faces profound social and economic changes that exert intense pressures on businesses and generates a growing need to apply new skills by both individuals and firms in order to adapt to future challenges. One of these new skills is CT. Therefore, this article sought to enliven the debate on CT in business by identifying and mapping existing research on CT in business studies and by reviewing the key insight from papers that directly tackle the issue of CT business applications encapsulated in the two research questions formulated in the introduction. Having done so, we have striven to provide a thorough examination of the research areas and underexplored synergies that have emerged in CT studies.

Our review has suggested that CT is broadly perceived as a concept that will gain importance and offers a variety of still underexplored research opportunities. This idea is shared by both researchers and business practitioners, which means that there is a greater need for more in-depth research into CT.

Our elaboration of the two research questions has led to four main conclusions. First, our article has shown what is missing in the research and what should be an important research topic. We expected to conduct a review of many practical studies showing the importance of CT in various sectors of the economy. Moreover, we expected a large number of studies on the importance of CT at various stages of company development and in different business units such as strategic planning, marketing, or finance. Meanwhile, this type of research was found to be extremely rare. Moreover, we did not find any studies that showed a correlation between business success (measured, e.g. by higher survival rate or financial performance) and CT skills. Therefore, the business applications of CT, its practical implementation and its outcome have been identified as under-researched. Our systematic literature review has confirmed the limited scope of the studies that directly refer to CT in business practice, demonstrated by the restricted number of articles in the scope of the review. Moreover, our study has also shown that there is no research consensus on the definition of CT in business and the operationalization of this concept.

Second, we have demonstrated that while research on CT proliferates in business studies, there are substantial imbalances in the body of literature, with most of the research dedicated to university education and the development of CT skills by other learning forms. This is evidenced by the study of articles on CT in relation to the Covid-19 pandemic. In an additional review performed by us following the outcome of this research, we studied CT in connection with Covid-19. The results showed that there were 54 articles with the words “critical thinking” and “Covid” in their titles. However, none of them concerned business, economics, or company research. This is astonishing at a time when substantial parts of the global economy are in lockdown, and many companies face the specter of bankruptcy. On the other hand, many articles from the sample focused on CT in education, especially on blended learning. This further indicates the imbalance in CT studies that we have identified in the course of our bibliometric analysis and literature review.

Third, the results of our study reveal that, relatively speaking, the most researched area in CT business application is its use as part of a skillset employed in business. The results of our research into this stream of literature generally indicate that CT skills reinforce business decisions and prevent cognitive biases and heuristics. However, the extent to which this contributes to better business decision-making requires further validation through empirical research. In this research stream, CT is often considered as a bundle of various skills, which frequently includes relatively distant and vaguely related concepts such as creativity. This result suggests that more research efforts are required to properly define and operationalize CT skills and chart a more evident boundary between CT and other skills.

attempts to explore the link between CT and business performance;

possible dependence between the application of CT and firms’ ability to innovate;

application of CT to assess investment decisions;

strategic decision-making such as entering new markets or mergers and acquisitions;

assessment of decisions made by artificial intelligence (algorithms);

implementation of CT in risk assessment;

linking of soft skills (including learnability) with CT in business;

the potential relationship between the application of CT and company characteristics such as company size, internationalization and ownership.

The results of our systematic review demonstrate opportunities for future studies, which are based on investigating the application of CT to other business functions than those identified in our research, namely accounting, marketing, human resources and business opportunity identification. Moreover, the current literature seems to offer only rudimentary insight into the application of CT in each of the business functions discussed above in Section 4.2 . This opens research avenues for more in-depth studies with a particular focus on empirical research, as empirical research has proved to be especially scarce in the literature.

we need a broad discussion to develop a definition of CT in business, as the participation of researchers from various disciplines could especially strongly improve the consensus on how to operationalize CT in business;

the research gaps could be reduced by undertaking extensive research by teams of many scientific fields, including multidisciplinary research, which would investigate the relationship of CT with various aspects of business management;

the research gaps could be narrowed down by various types of research, but two research types are particularly relevant: panel studies – e.g. a panel study of newly established companies and experimental research – conducted by psychologists inside firms and in controlled environments of laboratory experiments. These types of research would progress our understanding of the link between CT skills in business and the economic performance of companies. However, these studies should be preceded by a broad discussion on the definition of the concept of “critical thinking in business” and the operationalization of this concept.

To conclude, based on the advice of researchers and business practitioners, we agree that CT is one of the crucial skills of the future. Research on the use of this skill in business should definitely gain higher priority in management and economic studies. Our research is a voice in this discussion. We have synthesized the most prominent areas of study so far and have suggested the way forward for CT application in business. Without proving the usefulness of this skill in economic practice, teaching CT to many students of economics may turn out to be direly ineffective.

Strategic diagram template

PRISMA diagram and the selection process with the number of documents

The systematic review process and the number of papers reviewed

Texts included in the systematic literature review

Source(s): Own elaboration

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Home Blog Business Using Critical Thinking to Achieve Business Goals

Using Critical Thinking to Achieve Business Goals

Human beings are prone to a number of cognitive biases. These biases can often result in clouding our judgment and hinder us from making good decisions. Be it the Sunk Cost Fallacy , stereotyping, the Endowment effect or the Dunning-Kruger effect , we are driven by different types of cognitive biases that make critical thinking difficult. However, with a little bit of effort, you can train your mind to make better decisions, including critical decisions at the workplace or for achieving business goals. Using critical thinking is easier than most people think and can be achieved by following a few simple steps.

What is Critical Thinking?

• Be Objective
• Explore Conflicting Ideas
• Analyze Facts
• Seek Advice
• Use Inductive and Deductive Reasoning
• Sequence Information for Use
• Predict Possible Outcomes
• Prioritize and Choose the Best Possible Course of Action
• Take a Step back to Periodically Analyze and Improve
• Avoid Analysis Paralysis

Critical Thinking Barriers

Business investment decisions, workplace decision-making, conducting research, making a presentation, making lifestyle changes, final words.

Critical thinking can be defined as an objective analysis to evaluate and reach a conclusion regarding a subject. This critical thinking definition can be further expanded by incorporating aspects such as skepticism and rationality to reach a conclusion based on factual evidence and free of bias.

Source: SlideModel.com

Critical thinking can be challenging to incorporate in our daily lives considering we are used to various biases and are heavily influenced by different individuals, concepts, and ideologies that make it hard to program our minds to look at things objectively. Rising above such biases and analyzing facts rationally can enable individuals to critically evaluate and reach a conclusion based on evidence rather than conjecture.

While many times our biases might not have a major impact on our decision making, some decisions, if left to speculation and biases can result in devastating consequences. This is why many employers today cite critical thinking as a major factor for hiring employees.

Developing the Right Mindset and Skills for Critical Thinking

In order to improve decision-making by looking at things with a critical lens, it is important to develop the right mindset. While there is no hard and fast rule to achieve this, you can activate your critical thinking skills by following a few easy steps mentioned below.

1. Be Objective

Critical thinking truly begins with one word, objectivity. This means considering all facts and analyzing the information before you with an open mind. You should try to be as objective as a flight captain who during a mid-flight issue might even need to consider that the plane has lost an engine. You can also make use of models such as OODA Loop (see OODA Loop PowerPoint template ), which is a model used for high-speed critical thinking.

Example: You might come across news related to the market for electric cars picking up in 2021. You might even consider buying shares in companies selling electric cars. But will the market really pick up? In this case, you need to critically analyze the possibility of sales remaining strong. Some critical thinking questions, in this case, might be to ask yourself if the analysts have ties to the electric vehicles market and are being biased or will COVID-19 have a negative impact on sales? Will the economy remain strong enough? Will banks be able to offer tempting terms for people to go for a lease on electric vehicles?

2. Explore Conflicting Ideas

Often, we are bombarded with information from a single perspective. Be it in books, news and in recent years, social media posts. What’s important for incorporating critical thinking in your daily routine is to not only be objective and to check your facts but also to consider conflicting ideas.

Example: In our example of electric vehicles, we assume that you are an investor looking to invest in a profitable venture to diversify your company’s portfolio and increase profits as a part of your business goals. In the case of electric vehicles, you can look at the opinions for and against the chances of the market for electric vehicle sales picking up in 2021. Such a possibility might also be linked to a number of other factors such as the available infrastructure in your country to support such vehicles, government’s taxation policies, the possibilities of an increase or reduction in taxes in the upcoming budget, etc.

3. Analyze Facts

Analyzing facts is essential to reach a conclusion based on critical thinking. You should be able to analyze evidence, question various ideas, reach a hypothesis and reach a conclusion that is free of bias.

Example: In the scenario of electric vehicles, you might learn that the government in your country is pushing for an eco-friendly policy by reducing taxes on electric vehicles. While this might apparently mean that the market is likely to pick up, there are a range of other questions you must ask yourself. For example, will people prefer making a switch from petroleum-based vehicles? Will people be able to afford electric vehicles? Will the lengthy charging time be a deterrent?

4. Seek Advice

We are unlikely to be able to shed all forms of bias. This is why it is a good idea to seek advice and the views of other people. In case that individual is an expert or has experience with the subject, you will be able to get firsthand advice. Even if it comes with a few biases. The idea is to see the bigger picture and have a perspective that can enable you to see things clearly.

Example: When opting to invest in the market for electric vehicles, you can seek the advice of an expert who has been analyzing vehicle sales over the years. Similarly, you can look at the views of people from the electric and petroleum-based vehicle market.

5. Use Inductive and Deductive Reasoning

The critical thinking psychology at play involves using inductive reasoning to formulate a theory and using deductive reasoning to test it.

Example: The analysis of facts might make you consider that the electric vehicle market is going to stay strong and be very profitable in your country. In order to test the theory, you might want to dig deeper. You can perhaps wait until the annual budget is unveiled to see what direction stock prices and sales go in the first two quarters of the year. If the EV market seems to be going strong in the first two quarters of the year due to consumer confidence and despite the COVID-19 pandemic, it means that the market might continue to remain strong and is worth investing in.

6. Sequence Information for Use

Making critical business decisions isn’t just about reaching a theory and testing it. How you maneuver your business means a lot more than just understanding facts.

Example: We assume that three major players in your country have had a good two quarters of 2021, in selling electric vehicles. But a deeper look at facts might present troublesome trends. As one of the company’s models has issues that require vehicle recalls and the need for frequent repairs. Will this result in a dip of consumer confidence? Will this only affect one or all three companies and consequently, the sales for electric vehicles? This is the kind of information you need to sequence for further analysis.

7. Predict Possible Outcomes

While no one can account for unforeseen circumstances, critical thinking also involves trying to predict possible outcomes.

Example: When trying to achieve business goals, such as increasing your company’s profits by investing in a profitable venture, you might need to consider predicting possible outcomes. So, let’s assume that despite the glitch in electric vehicles of one of three companies, consumers seem happy with the price, lease options, and quality of vehicles of the other two companies. In such a case, based on the aforementioned, you need to be able to predict if the market is worth investing in.

8. Prioritize and Choose the Best Possible Course of Action

The best possible course of action might include opting for the best possible outcome. While one can go wrong even after careful critical analysis, doing so can greatly reduce risks and help you account for them.

Example: You might opt for a smaller investment in the market for hatchback electric vehicles, which in our example have seen the biggest spike in sales in your country during the first two quarters of 2021. In this case, you are prioritizing the best possible and ‘safe’ course of action, likely to result in either a small short-term profit or a short-term loss.

9. Take a Step back to Periodically Analyze and Improve

This part is quite important. As you need to periodically take a step back, see things from an objective point of view and make adjustments if necessary.

Example: In our example of EV, the sales might improve in the third quarter of 2021 or they might begin to decline. Based on how the market reacts, you can continue to increase or reduce investment in the market of electric vehicles.

10. Avoid Analysis Paralysis

There is the real possibility of freezing up when making important decisions. In a previous post, we covered this phenomenon and gave tips for better decision-making in our guide on analysis paralysis .

Example: The market for EV remains volatile, with the possibility of gains and losses, neither of which you are able to predict. Resulting in lost opportunities and analysis paralysis. In such a case, you must opt for the best course of action in sight, account for failure, make contingency plans and commit to your decision. As they say, you win some, you lose some. However, not playing isn’t going to get you anywhere.

When considering the barriers to critical thinking, we must consider what might hold us back from an objective judgment? It’s not just our own bias but the bias of others, the culture, working environment and a range of other factors that can negatively influence sound judgement. In such a case it is necessary to eliminate such barriers and to rise above biases, influences and ideologies, to see things for what they are.

Perhaps the most difficult job in addressing these issues is for a flight crew which might need to face the possibility of an imminent plane crash during a mid-flight issue. In such a case, pilots use the TDODAR Model for decision-making. The model gives us a good example of how to incorporate critical thinking, even during the most challenging circumstances.

Critical Thinking Examples

There can be many examples of applying critical thinking. We have listed a few common scenarios where critical thinking can help make changes that can enable you to achieve personal and professional goals.

The .com gold rush of the 90s had many winners and losers. While many people began investing in websites and digital ventures by simply following the bandwagon, there were a few that made sound decisions to reap the benefits of unprecedented success. Be it Jeff Bezos, the founder of Amazon or Larry Page and Sergey Brin, who started Google from a friend’s garage. What made these business investments worth the money was arguably critical thinking.

In our example of electric vehicles discussed in sections above, we have explored the relationship between critical thinking and sound business investment decisions. The quote given below is an example of how critical thinking is essential for making sound investment decisions.

“One of the only ways to get out of a tight box is to invent your way out.” — Jeff Bezos

Unfortunately, modern workplaces can be ridden with politics and a culture where anyone can be held accountable for a single tweet spelling out the wrong words accidentally. This means that people scrutinize everything you do more than ever before, and some might even be looking for an opportunity to judge others. In such a case it helps to rank high on your Emotional Quotient (EQ). Similarly, workplace-related decision-making can often mean spelling success or failure for you. The difference might be between keeping your job or losing it.

In order to improve decision-making at the workplace by incorporating critical thinking, you must get your basics right. You must remain objective, question facts, analyze data, constantly use your inductive and deductive reasoning and predict outcomes. Doing so might not be limited to your work and projects but also the behavior of co-workers. This might help you identify colleagues that are helpful and the ones you might need to avoid. It is often the lack of foresight that results in individuals relying on the wrong co-worker that results in their inability to achieve desired goals.

You can also use heuristic problem solving methods at the workplace to find solutions and discover ways to do your job effectively.

It goes without saying that no one can conduct credible research without critical thinking. Researchers that are marred by bias are soon proved wrong by other researchers. Before conducting a research, it is essential that one does not jump to conclusions, while keeping an open mind regarding the subject. Furthermore, doing your homework, consulting others and reaching out to people with experience related to the phenomenon are some of the essential aspects of forming and testing your hypothesis.

Fortunately, researchers can now make use of a number of tools that can do part of the ‘thinking’ for them. There is no harm in using AI technology or research tools that drill down and extract data based on inputs. This can be a good way of discovering new information free of your own bias. It also might be beneficial to let someone else create data sets as well, so you can see things from different perspectives, free of your own preferences.

What often causes death by PowerPoint is the personal bias of the presenter. You can’t simply expect people to patiently accept everything you say without disagreement. This is especially true when you base your presentation on a lot of assumptions.

To make your presentations strike a chord with the audience, you need critical thinking. To start off, you should try to have clarity regarding the topic you intend to present, facts, counter arguments and how you intend to cater for them. You should also be mindful of the preferences, beliefs and concepts valued by your audience. For example, delivering a presentation before angel investors with emphasis on how good your idea can be isn’t going to work. You need to show them how the venture can be profitable, with specific information about how and why the concept can result in profitability. In other words, you need to show the money trail!

To get some tips regarding how to better plan for your presentations by incorporating critical thinking, see our guides for persuasive speech ,’ tips for starting your presentation , the’ rhetorical triangle and the 20/60/20 rule for presenters.

The most important changes we make are the ones in our lifestyle. Be it to accommodate our health or family related needs or to achieve personal goals. A daily routine, amidst tight schedules can often result in us neglecting our own needs. Sometimes, it takes a long weekend for one to realize that a lingering back ache needs to be checked by a doctor or that your house needs to be cleaned of the mold causing you allergies. When it comes to the question of how to think critically, one should perhaps start with personal lifestyle needs.

The tools to sharpen your mind, with all the critical thinking images are pretty much present in your house. You can start by checking the things you have been neglecting. The things that need attention. Such as your personal health, your relationship with family and friends, the cleanliness of your house, causes of potential concern, etc. Sometimes, fixing a leaky faucet on time helps you avoid a larger bill caused by additional damage due to the leaking water. Training your mind to look after yourself and your loved ones can be of immense satisfaction, while sharpening your skills to objectively look at things that need fixing. Sometimes, these things are as little as the need for you to take rest to avoid a burn out.

When trying to incorporate critical thinking for better decision-making, you should try to not overindulge in the need for finding issues. Don’t be that person who has a problem for every solution! Instead, focus on facts and try to make better decisions. It is likely that you will face both success and failure in your decision-making. However, this should not be a barrier for you to move forward. Over time, you will be able to improve the way you see things, even though you might face a bit of opposition for not following the bandwagon. Regardless, the objective should be to achieve personal goals, make decisions free of bias, and accept and learn from your mistakes, so you can do things better.

Alternatively, we recommend our article on Design Thinking Process to solve company problems in an effective and innovatively way.

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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. Employers prioritize the ability to think critically—find out why, plus see how you can demonstrate that you have this ability throughout the job application process. 

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.

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 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.

Promote Your Skills in Your 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 critical thinking skills in mind as you update your resume and write your cover letter. As you've seen, you can also emphasize them at other points throughout the application process, such as your interview. 

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 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 that 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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10 Best Critical Thinking Tips from Business Experts

• POSTED ON June 19, 2023
• by Marcjean Yutuc

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

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

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

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

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

Critical Thinking Tips from Business Experts

Implement real-life data analysis.

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

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

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

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

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

Combine Analytical and Creative Problem-Solving Skills

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

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

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

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

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

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

Take a Step Back and Look at the Big Picture

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

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

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

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

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

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

Approach Every Situation with an Open Mind

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

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

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

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

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

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

Don’t Rely Heavily on Technology

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

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

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

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

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

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

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

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

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

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

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

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

Constant Evaluation

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

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

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

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

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

Allow Sufficient Time

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

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

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

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

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

Don’t Fear Questioning

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

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

Here are some additional tips that may help you:

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

Embrace Lifelong Learning

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

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

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

Here are some tips for embracing lifelong learning:

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

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

More Tips: How to Improve Critical Thinking Skills at Work

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

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

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

Frequently Asked Questions About Critical Thinking for Business

1. what is critical thinking.

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

2. Why is critical thinking important in business?

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

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

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

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

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

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

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

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

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

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

Key Takeaways

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

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

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

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

Subscribe to Skill Success All Access Pass today!

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Marcjean Yutuc

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What is Critical Thinking?

Critical thinking is the ability to think clearly and rationally, understanding the logical connection between ideas.  Critical thinking has been the subject of much debate and thought since the time of early Greek philosophers such as Plato and Socrates and has continued to be a subject of discussion into the modern age, for example the ability to recognise fake news .

Critical thinking might be described as the ability to engage in reflective and independent thinking.

In essence, critical thinking requires you to use your ability to reason. It is about being an active learner rather than a passive recipient of information.

Critical thinkers rigorously question ideas and assumptions rather than accepting them at face value. They will always seek to determine whether the ideas, arguments and findings represent the entire picture and are open to finding that they do not.

Critical thinkers will identify, analyse and solve problems systematically rather than by intuition or instinct.

Someone with critical thinking skills can:

Understand the links between ideas.

Determine the importance and relevance of arguments and ideas.

Recognise, build and appraise arguments.

Identify inconsistencies and errors in reasoning.

Approach problems in a consistent and systematic way.

Reflect on the justification of their own assumptions, beliefs and values.

Critical thinking is thinking about things in certain ways so as to arrive at the best possible solution in the circumstances that the thinker is aware of. In more everyday language, it is a way of thinking about whatever is presently occupying your mind so that you come to the best possible conclusion.

Critical Thinking is:

A way of thinking about particular things at a particular time; it is not the accumulation of facts and knowledge or something that you can learn once and then use in that form forever, such as the nine times table you learn and use in school.

The Skills We Need for Critical Thinking

The skills that we need in order to be able to think critically are varied and include observation, analysis, interpretation, reflection, evaluation, inference, explanation, problem solving, and decision making.

Specifically we need to be able to:

Think about a topic or issue in an objective and critical way.

Identify the different arguments there are in relation to a particular issue.

Evaluate a point of view to determine how strong or valid it is.

Recognise any weaknesses or negative points that there are in the evidence or argument.

Notice what implications there might be behind a statement or argument.

Provide structured reasoning and support for an argument that we wish to make.

The Critical Thinking Process

You should be aware that none of us think critically all the time.

Sometimes we think in almost any way but critically, for example when our self-control is affected by anger, grief or joy or when we are feeling just plain ‘bloody minded’.

On the other hand, the good news is that, since our critical thinking ability varies according to our current mindset, most of the time we can learn to improve our critical thinking ability by developing certain routine activities and applying them to all problems that present themselves.

Once you understand the theory of critical thinking, improving your critical thinking skills takes persistence and practice.

Try this simple exercise to help you to start thinking critically.

Think of something that someone has recently told you. Then ask yourself the following questions:

Who said it?

Someone you know? Someone in a position of authority or power? Does it matter who told you this?

What did they say?

Did they give facts or opinions? Did they provide all the facts? Did they leave anything out?

Where did they say it?

Was it in public or in private? Did other people have a chance to respond an provide an alternative account?

When did they say it?

Was it before, during or after an important event? Is timing important?

Why did they say it?

Did they explain the reasoning behind their opinion? Were they trying to make someone look good or bad?

How did they say it?

Were they happy or sad, angry or indifferent? Did they write it or say it? Could you understand what was said?

What are you Aiming to Achieve?

One of the most important aspects of critical thinking is to decide what you are aiming to achieve and then make a decision based on a range of possibilities.

Once you have clarified that aim for yourself you should use it as the starting point in all future situations requiring thought and, possibly, further decision making. Where needed, make your workmates, family or those around you aware of your intention to pursue this goal. You must then discipline yourself to keep on track until changing circumstances mean you have to revisit the start of the decision making process.

However, there are things that get in the way of simple decision making. We all carry with us a range of likes and dislikes, learnt behaviours and personal preferences developed throughout our lives; they are the hallmarks of being human. A major contribution to ensuring we think critically is to be aware of these personal characteristics, preferences and biases and make allowance for them when considering possible next steps, whether they are at the pre-action consideration stage or as part of a rethink caused by unexpected or unforeseen impediments to continued progress.

The more clearly we are aware of ourselves, our strengths and weaknesses, the more likely our critical thinking will be productive.

The Benefit of Foresight

Perhaps the most important element of thinking critically is foresight.

Almost all decisions we make and implement don’t prove disastrous if we find reasons to abandon them. However, our decision making will be infinitely better and more likely to lead to success if, when we reach a tentative conclusion, we pause and consider the impact on the people and activities around us.

The elements needing consideration are generally numerous and varied. In many cases, consideration of one element from a different perspective will reveal potential dangers in pursuing our decision.

For instance, moving a business activity to a new location may improve potential output considerably but it may also lead to the loss of skilled workers if the distance moved is too great. Which of these is the more important consideration? Is there some way of lessening the conflict?

These are the sort of problems that may arise from incomplete critical thinking, a demonstration perhaps of the critical importance of good critical thinking.

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In Summary:

Critical thinking is aimed at achieving the best possible outcomes in any situation. In order to achieve this it must involve gathering and evaluating information from as many different sources possible.

Critical thinking requires a clear, often uncomfortable, assessment of your personal strengths, weaknesses and preferences and their possible impact on decisions you may make.

Critical thinking requires the development and use of foresight as far as this is possible. As Doris Day sang, “the future’s not ours to see”.

Implementing the decisions made arising from critical thinking must take into account an assessment of possible outcomes and ways of avoiding potentially negative outcomes, or at least lessening their impact.

• Critical thinking involves reviewing the results of the application of decisions made and implementing change where possible.

It might be thought that we are overextending our demands on critical thinking in expecting that it can help to construct focused meaning rather than examining the information given and the knowledge we have acquired to see if we can, if necessary, construct a meaning that will be acceptable and useful.

After all, almost no information we have available to us, either externally or internally, carries any guarantee of its life or appropriateness.  Neat step-by-step instructions may provide some sort of trellis on which our basic understanding of critical thinking can blossom but it doesn’t and cannot provide any assurance of certainty, utility or longevity.

Continue to: Critical Thinking and Fake News Critical Reading

See also: Analytical Skills Understanding and Addressing Conspiracy Theories Introduction to Neuro-Linguistic Programming (NLP)

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Defining Critical Thinking

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

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

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

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