Critical thinking in business PDF  | Print |  E-mail
Written by Carol McGowan   

A survey of HR professionals undertaken in 2009 indicated that the most important skills for employees would be critical thinking. This was rated ahead of the need for innovation and the application of technology. This finding may surprise you it did me. Lets explore what is critical thinking and why it is so important for business.

Everyday in every way we are bombarded by the amount of information available to us. We are also being asked to take on roles we have had little training for and yet require important decisions to be made often in isolation and quickly. This provides the backdrop for why critical thinking skills are so important.

Good decisions (which rely on the effective use of critical thinking skills) result from being able to appropriately balance three key elements, which are:
1. Identifying the most relevant information
2. Asking the right questions
3. Being able to isolate fact from fiction

These three elements form the foundation to help with critical thinking. How many people do you know who do this well on a consistent basis? The survey discovered that only 28% of employees with a 4-year university education had excellent critical thinking skills. The remainder of the participants of the survey were rated as being adequate (63%) or deficient (9%). This does not bode well for businesses given the perceived importance of this ability.

Where are Critical Thinking Skills Used and Who Needs Them?

In a business context critical thinking skills are applied in at least 4 critical areas.
• Problem solving
• Decision making
• Organisational planning
• Risk management

There are many other areas where these skills need to be applied as well so it is a ‘vital' resource to have well-developed critical thinking skills within the business. Unfortunately identifying whether someone has critical thinking skills is not easily identified throughout the recruitment process. Many business leaders are deficient in this area, which is quite disturbing. It is not surprising to learn that the higher up the ladder you go the more crucial the possession of critical thinking skills becomes. Having these skills contributes to both personal and professional success.

Everyone has a natural capacity to think logically and critically. However without direct action to help develop it this ability will not reach its full potential. Many in business either as business owners or employees, within a range of organisational roles, have never had this skill developed.

Developing Critical Thinking Skills
One of the ways to develop these skills is to learn to see situations without a particular point of view in mind. This leaves you open to considering more options and possibilities and not just from one particular perspective. This encourages you to look at the situation/scenario and simply identify the ‘essential facts' (as mentioned earlier). Then you are in a better position to consider ‘what's missing' or ‘what could be modified or improved'? It is important to realise that sometimes critical thinking can be at odds with our intuition. Being able to find the right objective and subjective input is part of learning how to develop critical thinking skills. Knowing when to listen to your intuition and when to hold back takes time and experience.

A key point to remember is that critical thinking needs to occur from an ‘impartial' standpoint. It is not usually about trying to prove a point or achieve a ‘pre-determined' outcome. One of the reasons difficulties occur with critical thinking is that the person needing to make the decision is too focused ‘in' the business and these decisions need to be made ‘on' the business.

7 Tips to Assist with Critical Thinking

1. Be clear on what is fact in the situation. Do not get confused with unnecessary or irrelevant information
2. Know the origin of your information. It is important to be sure about the reliability of the information you are using to make your decision.
3. Do not allow any relationships to inappropriately impact how you determine the validity and suitability of the information you use.
4. Check the veracity of the information. This means ensure it is verifiable and accurate. Analyse the information objectively and accurately. Question the quality of the available evidence.
5. Continue to ask questions even if it seems like you have an answer. This helps to ensure that validity of the input to the decision as well as the decision itself.
6. Identify and test any assumptions for relevance and suitability. Again this ensures you are relying on fact and not simply on opinion.
7. Formulate conclusions that can be directly related to the available evidence. Be willing to change your mind/position if sufficiently compelling evidence emerges.

This is not easy however as with any skill the more you practice it the better you become at it.

Carol McGowan is a Business and Life Coach, Counsellor and Educator. Her passion is helping individuals and businesses to make successful transitions. Carol has over 35 years experience in business and has released a book called Aspiring to Good Business. She may be contacted at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Information about Carol can be found at www.besa.com.au

 

 

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