why is critical thinking important for business decisions

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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

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

What are critical thinking skills?

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

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

What are the benefits of critical thinking in the workplace?

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

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

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

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

How do you teach critical thinking in the workplace?

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

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

How do you identify successful critical thinking?

Successful critical thinking happens during a crisis, not after.

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

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

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

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

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

Critical thinking is the key to your business success

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

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

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

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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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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.

Ready to be challenged, inspired and motivated by the world’s top business and thought leaders? Join us online for the EntreLeadership Summit livestream—you can even invite your team to watch with you.

Are you losing steam with your current ad strategy? Critical thinking can lead you to new advertising ideas and marketing streams—and create even more business traffic. Stressed out by supply chain issues? Critical thinking can help you find new vendors and ways of doing business. When you think boldly and keep control of the situation, you impose your will (and good sense) on the world around you.

Here’s one more example of why critical thinking is important: Say you notice a dip in sales one month. You could blow it off as a fluke and charge ahead blindly. Or you could panic, treat it as the beginning of the end, and pressure your sales team to turn the ship before you’re forced to close your doors. Which one is right? Probably neither. But you won’t know how to respond until you carefully look at your business trends, analyze market conditions, and talk with some other smart, experienced leaders.

Your team and your business are just as good as your reasoning and decision-making skills.

Critical thinking helps you:

• Keep emotions and chaos in check as you approach problems with facts, not feelings
• Understand the importance and relevance of ideas
• Know when to challenge information and when to stop overthinking
• See how ideas are linked and call out inconsistencies and mistakes
• Appreciate different perspectives
• Consider others’ needs and show respect

Ask yourself how much you prioritize running your business with clarity, fairness, accuracy, and relevance. Your answer will give you a good picture of how much you value critical thinking.

Related article: What is Transformational Leadership?

Critical thinking has plenty of enemies though. Beware of these traits and behaviors that can lead to bad thinking and bad business:

• Self-interest
• Blind acceptance of what’s “normal”

Have you ever heard the phrase, “ready, fire, aim”? Probably not—but that’s what it looks like to act before you get a clear picture of the situation. Things run smoother the less you shoot from the hip and the more you carefully consider your decisions.

Examples of Critical Thinking Skills in Business

Here are some examples leaders in different lines of work who use critical thinking to solve everyday business problems:

• A funeral home director who considers a grieving family’s budget and wishes and guides them to the best choices
• A home health care manager who analyzes their cases and matches team members with clients based on their needs and schedule preferences
• A home contractor who weighs out which subcontractors are the right fit for the job
• A customer service leader who uses feedback forms to decide on training needs for their team
• A landscaper who evaluates the risk versus the potential revenue growth of adding team members

The Critical Thinking Process

We’ve looked at why and when to put some extra thought into your business decisions, but let’s be real. Not every decision requires deep-level thinking. The amount of time and energy you spend deciding should be based on the size of the decision’s impact on your business.

If it’s your job to choose whether your company’s Christmas card envelope is white or red, for the love of holiday cheer, just decide. But if you’re about to make a major purchase or new hire, you’ve got some big investments on the line. Pause to think over the details before you advance.

Related article : Product Launch: 10 Questions to Ask Before You Launch a New Product

Also, as you prepare to solve a tricky problem, ask yourself these questions:

• What’s the real issue?
• Why does this problem or challenge exist?
• What information do I need to gather to understand more?
• How should I keep my notes organized?

Let’s say, for example, that your business issue is consistently unhappy customers. On the surface, it looks like your team members serve customers too slowly. Since both team members and customers are involved, you need to get perspective from both sides to learn why the problem exists. So, you gather details from them on when and where the issue shows up and how they think it is or isn’t being handled. As for how to keep track of the information you learn, you could simply take notes on your phone or computer to review later. Or, you might need to put them in a shared document so your key leaders can see them as you work on a solution together.

After doing some high-level digging, you may find that your team members really are slow, but why ? That’s the next thing you need to discover. Are they poorly trained? Working in a role they’re not good at? Using faulty equipment?

Following these steps of deeper-level critical thinking will help you uncover root issues—so you can fix any problems:

• Observe: Look at the issue from different angles and ask questions about it.
• Analyze: Test how true your information is.
• Reason: Come up with your top theories for why there’s a problem, then list possible conclusions and solutions. (We’ve already established that you’re an idea machine. That’s great!  Keep those possible solutions flowing.)
• Communicate: Talk with people who are smarter and further ahead in their career than you for deeper insight. That doesn’t mean to just ask anyone with an opinion—find someone with experience.
• Solve: Decide and act.

Now for an important reminder: Thinking critically means you’re always discovering, changing and improving. Afterall, the one thing thriving businesses count on is change . That means you might solve a customer concern one way today but find better ways to solve it in the future. The same is true in any situation where you use critical thinking steps. The more you want to grow, the more you challenge your ideas and ways of doing things to get the positive change!

How to Think More Critically

We get it. You’re reading this because you’re serious about taking new ground and winning in business. You’re serious about going the extra mile to raise your critical thinking game even more. Here are four practical ways to build stronger critical thinking skills:

• Take a course or play video and board games that challenge your brain.
• Volunteer to solve problems at work and home for practice.
• Talk to others who are really good at thinking critically.
• Expand your job knowledge and skills so you can see problems more clearly.

Related article :  Mastermind Groups: What Are They, and How Can They Help You Grow Your Business?

What’s Next: Decision Time

Great leaders are people of action. They’re neither knee-jerk and emotional or passive and indecisive. They get the facts, think them through, then make the call. Of course, your personality style will influence whether you naturally make decisions quickly or need more time—and that’s okay. But, when it’s go time, leaders lead. Those who don’t end up like the squirrel in the middle of the road looking back and forth, then moving in circles or not at all. We all know what happens to that squirrel.

One way to stretch your critical thinking skills is to learn from today’s top voices in business and leadership through The EntreLeadership Podcast . You’ll hear practical decision-making insights that help you lead with confidence, solve big problems and grow your business.

Did you find this article helpful? Share it!

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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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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Critical Thinking in Business Analysis: Why it Counts

“ Five percent of the people think; Ten percent of the people think they think; and the other eighty-five percent would rather die than think .”  ―  Thomas A. Edison

Business analysts are paid to think. Thinking is a force of habit that defines us and the quality of the decisions we make. If the numbers from Thomas Edison are anything to go by, our ability to think through situations should never be taken for granted.

Critical thinking is an extremely important quality that should be nurtured, refined and actively applied to every decision we make.

What exactly is Critical Thinking?

“Your mind is working at its best when you're being paranoid. You explore every avenue and possibility of your situation at high-speed and with total clarity.”  ―  Banksy ,  Banging Your Head Against a Brick Wall

In simple terms, critical thinking may be defined as " reasonable reflective thinking focused on deciding what to believe or do ". Another definition by the Critical Thinking Community is: "a mode of thinking, about any subject, content, or problem where the thinker improves the quality of his or her thinking by skilfully analyzing, assessing, and reconstructing reality. Critical thinking is self-directed, self-disciplined, self-monitored and self-corrective thinking."

Being critical is like being paranoid – Not taking everything you hear or read at face value. Critical thinking creates opportunities for exhaustive analysis which in turn, leads to well-informed decisions.

Why bother?

We need critical thinking for practically everything we do - academics, work and even in our personal lives. BAs should be able to hold logical debates from the beginning to the end. We are often required to think and speak quickly within a short frame of time. Our work also demands that we hypothesize connections between ideas while thinking on our feet. Thinking the right way the first time, can save a lot of rework down the line. We must be critical of our own ideas and other people’s ideas.

Being critical allows the BA to confirm which requirements are valid.

Don’t take what you hear or read at face value. Weigh up the evidence provided by stakeholders and consider the implications or consequences of their suggestions before making a recommendation. For example, a requirement may sound straightforward until you consider its impact. Will the requirement necessitate the inclusion of an associated requirement? Will allocating such a requirement to the first release affect the project deadline and available resources? Can the inclusion of the requirement be justified? For example, a stakeholder may state in simple terms, “ I need a report on the number of job applications we receive ”. Being critical implies drumming up questions like:

• Why is this report needed?  
• Who will be the recipient of the report and how will it be used?
• Is this report similar to any existing report?
• In what categories should the applications be presented?
• Which locations should the report cover?
• What is the anticipated frequency of use?
• In what format should the report be presented – Graphs or tabular form?

At the end of your analysis, you may discover that:  1) A similar report already exists which can be modified to suit the requirement, 2) The report may not be necessary at all – perhaps what the stakeholder really needs is a single functionality for adding up the total number of applications per month or 3) The frequency of use may imply that the requirement should be assigned a lower priority or even deferred till a later phase.

This hypothetical example of the application of critical thinking shows how a lot of time can be saved from the get-go as opposed to a situation where the analyst just takes the requirements at face value without finding out what the “real” requirements are.

In certain situations, a stakeholder may put forward a requirement that’s not necessarily tied to any business value but rather to their own increased convenience. Being critical allows the BA to distinguish between requirements that add value to the business and those that should be given a lesser priority.

There’s a huge difference between what a user wants and what they need. Being critical means separating “bells and whistles” functionality from the core functionality the system should deliver.

In seeking improvements, it’s also useful to consider if users have a valid justification for why they do things a certain way. You may find that when a person does things a certain way for so long, they may not have a valid reason for retaining these practices or even understand the reasons why these practices were encouraged in the first place. If the reasons for maintaining status quo are unclear and there are visible flaws in a process, there’s no reason not to improve it.

Being critical assists the BA in questioning stakeholder assumptions and concerns

Some assumptions or concerns are valid while others are not. If a stakeholder shares a concern, the onus is on the BA to investigate the concern and ascertain its validity. One of the things the BA may want to find out is if stakeholder concerns are “general” concerns shared by others or if they’re isolated concerns stemming from a single experience one stakeholder had in the past. For example, a stakeholder may state, “ O ur current system is slow – it doesn’t generate reports quickly enough ”. This statement requires further investigation. The BA should in this instance, verify how much data crunching is needed to generate the report, the speed of the network and if other users have encountered the same problem. The user for instance, could have been running a complex report over a poor network connection. Such claims should be investigated critically before recommendations are made.

The key takeaway is to be investigative in your approach; you never know what you may find.

Here's an interesting insight to critical thinking by Stever Robbins

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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 Business Leaders Can Cultivate Critical Thinking at Work

• By Stephanie Dillon

Stephanie Dillon

Unfortunately, increasingly, it seems as if critical thinking has evaded us. 

In the hectic pace of daily life, we can sometimes rush to business decisions without thinking them through — and get outcomes that might make us regret doing so. What happens outside of work, of course, can also impact us. The upcoming U.S. presidential election, the Israel-Hamas war and Russia’s invasion of Ukraine are just a few of the key issues currently at the top of peoples’ minds, and they can very well become discussion topics in the workplace. 

I believe that critical thinking is more important than ever. As business leaders, we must encourage critical thinking and create work environments that are conducive to it. Here are five steps we can take. 

1. Encourage Questions and Help Everyone Feel Safe

Too often, people are afraid to ask questions. That fear is usually due to the environment they’re in. 

As a leader, you set the tone at work. By asking questions, you can model critical thinking and encourage others to follow in your footsteps. Demonstrate that asking someone to clarify or expand their thoughts is OK. That said, however, be sure to emphasize that boundaries are important. If an employee, say, is speaking about how a recent global conflict has impacted their family, they likely don’t want to field dozens of questions asking for more details. There’s a balance between asking questions and recognizing boundaries, and with time, you and your team will become better at distinguishing the two. 

2. Be as Transparent as Possible About Your Choices at Work

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But to the extent possible, strive to be transparent about your choices. Explain the reasoning behind your decisions when it’s appropriate to do so. By doing so, you can show your employees that you didn’t just make a decision out of the blue — you weighed different factors and then moved forward. In turn, your team members might be more motivated to be transparent about their choices at work.  

3. Study Issues Deeply — and Highlight the Importance of Doing So

I’ve previously written about the importance of business leaders learning about current and historical events . 

People often form their opinions of issues based on reading a few news reports and scrolling on social media; they miss important details that can give them more context. Study issues deeply. Research the history of a given topic to better understand what led up to current circumstances. Read various sources about the issues; don’t rely on just one publication or website. Highlight the importance of deeply studying issues to your team as well. 

4. Guide the Team Through Problem-Solving and Critical Thinking 

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Speaking of different points of view, I can’t stress enough how important it is to seek other perspectives and opinions. It can be easy to find yourself in a bubble where all of your team members, friends and family members have a worldview similar to yours. 

But try to avoid interacting and working only with people who think like you. If you solely work with people with the same perspectives and opinions, you are robbing yourself of opportunities to learn. Additionally, by seeking varied takes, you can set a positive example to your team members — and ultimately, when we all can understand each other better, the world can become a better place. 

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• What Is Critical Thinking? | Definition & Examples

What Is Critical Thinking? | Definition & Examples

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

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

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

Critical thinking skills help you to:

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

Table of contents

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

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

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

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

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

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

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

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

Academic examples

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

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

Nonacademic examples

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

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

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

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

When encountering information, ask:

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

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

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

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

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

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

Critical thinking skills include the ability to:

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

Ask questions such as:

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

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

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

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

Being information literate means that you:

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

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

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

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

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A Crash Course in Critical Thinking

What you need to know—and read—about one of the essential skills needed today..

Posted April 8, 2024 | Reviewed by Michelle Quirk

• In research for "A More Beautiful Question," I did a deep dive into the current crisis in critical thinking.
• Many people may think of themselves as critical thinkers, but they actually are not.
• Here is a series of questions you can ask yourself to try to ensure that you are thinking critically.

Conspiracy theories. Inability to distinguish facts from falsehoods. Widespread confusion about who and what to believe.

These are some of the hallmarks of the current crisis in critical thinking—which just might be the issue of our times. Because if people aren’t willing or able to think critically as they choose potential leaders, they’re apt to choose bad ones. And if they can’t judge whether the information they’re receiving is sound, they may follow faulty advice while ignoring recommendations that are science-based and solid (and perhaps life-saving).

Moreover, as a society, if we can’t think critically about the many serious challenges we face, it becomes more difficult to agree on what those challenges are—much less solve them.

On a personal level, critical thinking can enable you to make better everyday decisions. It can help you make sense of an increasingly complex and confusing world.

In the new expanded edition of my book A More Beautiful Question ( AMBQ ), I took a deep dive into critical thinking. Here are a few key things I learned.

First off, before you can get better at critical thinking, you should understand what it is. It’s not just about being a skeptic. When thinking critically, we are thoughtfully reasoning, evaluating, and making decisions based on evidence and logic. And—perhaps most important—while doing this, a critical thinker always strives to be open-minded and fair-minded . That’s not easy: It demands that you constantly question your assumptions and biases and that you always remain open to considering opposing views.

In today’s polarized environment, many people think of themselves as critical thinkers simply because they ask skeptical questions—often directed at, say, certain government policies or ideas espoused by those on the “other side” of the political divide. The problem is, they may not be asking these questions with an open mind or a willingness to fairly consider opposing views.

When people do this, they’re engaging in “weak-sense critical thinking”—a term popularized by the late Richard Paul, a co-founder of The Foundation for Critical Thinking . “Weak-sense critical thinking” means applying the tools and practices of critical thinking—questioning, investigating, evaluating—but with the sole purpose of confirming one’s own bias or serving an agenda.

In AMBQ , I lay out a series of questions you can ask yourself to try to ensure that you’re thinking critically. Here are some of the questions to consider:

• Why do I believe what I believe?
• Are my views based on evidence?
• Have I fairly and thoughtfully considered differing viewpoints?
• Am I truly open to changing my mind?

Of course, becoming a better critical thinker is not as simple as just asking yourself a few questions. Critical thinking is a habit of mind that must be developed and strengthened over time. In effect, you must train yourself to think in a manner that is more effortful, aware, grounded, and balanced.

For those interested in giving themselves a crash course in critical thinking—something I did myself, as I was working on my book—I thought it might be helpful to share a list of some of the books that have shaped my own thinking on this subject. As a self-interested author, I naturally would suggest that you start with the new 10th-anniversary edition of A More Beautiful Question , but beyond that, here are the top eight critical-thinking books I’d recommend.

The Demon-Haunted World: Science as a Candle in the Dark , by Carl Sagan

This book simply must top the list, because the late scientist and author Carl Sagan continues to be such a bright shining light in the critical thinking universe. Chapter 12 includes the details on Sagan’s famous “baloney detection kit,” a collection of lessons and tips on how to deal with bogus arguments and logical fallacies.

Clear Thinking: Turning Ordinary Moments Into Extraordinary Results , by Shane Parrish

The creator of the Farnham Street website and host of the “Knowledge Project” podcast explains how to contend with biases and unconscious reactions so you can make better everyday decisions. It contains insights from many of the brilliant thinkers Shane has studied.

Good Thinking: Why Flawed Logic Puts Us All at Risk and How Critical Thinking Can Save the World , by David Robert Grimes

A brilliant, comprehensive 2021 book on critical thinking that, to my mind, hasn’t received nearly enough attention . The scientist Grimes dissects bad thinking, shows why it persists, and offers the tools to defeat it.

Think Again: The Power of Knowing What You Don't Know , by Adam Grant

Intellectual humility—being willing to admit that you might be wrong—is what this book is primarily about. But Adam, the renowned Wharton psychology professor and bestselling author, takes the reader on a mind-opening journey with colorful stories and characters.

Think Like a Detective: A Kid's Guide to Critical Thinking , by David Pakman

The popular YouTuber and podcast host Pakman—normally known for talking politics —has written a terrific primer on critical thinking for children. The illustrated book presents critical thinking as a “superpower” that enables kids to unlock mysteries and dig for truth. (I also recommend Pakman’s second kids’ book called Think Like a Scientist .)

Rationality: What It Is, Why It Seems Scarce, Why It Matters , by Steven Pinker

The Harvard psychology professor Pinker tackles conspiracy theories head-on but also explores concepts involving risk/reward, probability and randomness, and correlation/causation. And if that strikes you as daunting, be assured that Pinker makes it lively and accessible.

How Minds Change: The Surprising Science of Belief, Opinion and Persuasion , by David McRaney

David is a science writer who hosts the popular podcast “You Are Not So Smart” (and his ideas are featured in A More Beautiful Question ). His well-written book looks at ways you can actually get through to people who see the world very differently than you (hint: bludgeoning them with facts definitely won’t work).

A Healthy Democracy's Best Hope: Building the Critical Thinking Habit , by M Neil Browne and Chelsea Kulhanek

Neil Browne, author of the seminal Asking the Right Questions: A Guide to Critical Thinking, has been a pioneer in presenting critical thinking as a question-based approach to making sense of the world around us. His newest book, co-authored with Chelsea Kulhanek, breaks down critical thinking into “11 explosive questions”—including the “priors question” (which challenges us to question assumptions), the “evidence question” (focusing on how to evaluate and weigh evidence), and the “humility question” (which reminds us that a critical thinker must be humble enough to consider the possibility of being wrong).

Warren Berger is a longtime journalist and author of A More Beautiful Question .

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Tech Matters: Understanding data analysis and why it matters

By leslie meredith - special to the standard-examiner | apr 10, 2024.

Photo supplied

Data analysis is critical for decision making, but if the numbers are misinterpreted, decisions based on those conclusions could lead companies or individuals astray. That’s why it’s important to understand basic statistics, survey design and common ways data interpretations go wrong — regardless of your role.

I’m a marketing director for an events company headquartered in London. Last week, a colleague announced a “finding” from a new piece of data analysis done by the head of research. She said that our customers want to meet people from the same sector at an event, not those from other sectors. For 10 years, the post-show surveys have revealed the majority of attendees want to meet a group we call VIPs. This new finding could change the way events are organized: reorganizing the exhibition floor into sector clusters or cutting funding for VIPs.

Looking at the analysis, the problem jumped off the page. The analyst had drawn conclusions from very small sector groups and presented them with equal weight to the preferences of the very large groups — we’re looking at a difference of 15-44 people in a sector to thousands of people in a sector. Once analysis for the sector samples with more than 1,000 people and the VIPs were shown, the results were consistent with those of the past.

How could that happen? It’s much more common than you might think. In a 2022 study of 3,914 participants, researchers from the UNSW Business School in Australia and The Hong Kong Polytechnic University found that people ignore the sample size in their judgments and decisions and tend to be unduly confident in conclusions drawn from studies with as few as three participants.

“It is especially appalling to think many important businesses and public policy decisions might have been made based on unreliable results from small samples,” Dr. Siran Zhan, co-author of the study, wrote on the university blog.

Sample size, and particularly relative sample size as described above, is important. If you’re reviewing the results of a customer survey, keep that in mind. Smaller sample sizes almost guarantee alarmingly significant results because the impact of an outlier (a number much smaller or much larger than the mean of the other responses) will be bigger and skew the results. The closer the sample size is to your population, the more reliable the results will be. You should see the absolute number for each group, not just a percentage of the total, along with a numerical total.

Let’s look at more common ways data can mislead and how to determine when data is good enough for decision making.

Finding the survey or source data is always a good idea because misleading statistics are everywhere — in the news, ad campaigns and even scientific literature. For internal data, be sure that all results are included. A common pitfall in processing data is “cherry picking,” which means including only the results that support the desired conclusion.

Data presentations can also be rife with misleading information. Charts, graphs and other data visualizations can make results easier to understand, but only if they’re presented with accuracy. Look for the omission of the baseline or an axis that starts above zero. Intervals can be chosen to make differences look far greater than they are — is the y-axis marked at every counting number? Are the intervals uneven? When you see a visualization that looks different than most others you’ve encountered, look again to understand why. If it doesn’t make sense, it may be misleading.

If you feel like you need to brush up on your knowledge of statistics, you can take a free online course from the Massachusetts Institute of Technology (MIT): Fundamentals of Statistics. It starts Aug. 26 and runs through Dec. 17. Go to edx.org to enroll, along with 160,917 others — now that’s a number I’m happy to see.

Leslie Meredith has been writing about technology for more than a decade. As a mom of four, value, usefulness, and online safety take priority. Have a question? Email Leslie at [email protected].

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