Critical Thinking

One of the key competencies required of business leaders is critical thinking. Everybody has it to some degree. Utilizing it to the right degree is very important in business success.

Many entrepreneurs are solutions oriented. They see a problem. They attack it. They solve it. They move on. Sounds good, right? Efficient? Not exactly. That behavior is only good if the quick solution is based on experience, analysis, strong intuition or near certainty.

Coming up with "A" solution is not the same as coming up with the best solution. Critical thinking is using the filters listed above to consider a number of solutions and then making a decision in a timely manner. Before any decision is made, the "decider" (thank you George Bush for that word) needs to think about the possible consequences, both plus and minus, of that course of action.

Is the reward worth the risk?

Suppose that you are pitching a piece of business to an important potential customer at a critical time for your business. You and two of your high level colleagues are meeting with a key decision maker. He says "Honestly, your proposal is very similar to that of two other companies, maybe a tad better. I could choose any one of the three of you and not be faulted. If you were to give me some 'personal incentive' to choose you, the business is yours. Take a moment to consider that." With that, he leaves the room.

Your two colleagues immediately jump to the question of what and how much the payoff should be. They already see the solution. Give this guy some sort of kickback.

You however, as the critical thinker in the bunch stop and take a deep breath. You know that the reward of the kickback is the contract and that has a finite dollar value

The consequences however could be far more extensive. You would show your colleagues where your values lie, thus encouraging them to get involved in similar activity, which goes well beyond paying kickbacks. The ripples would extend into every area of honesty and integrity. You could be setting the tone for a form of corporate lawlessness.

Secondly, you are creating a precedent for doing business with this client.

Thirdly, what if it comes out? How would you look? What would that do to your business? To your personal reputation? To your family?

Taking just a few minutes to consider alternative scenarios, it shouldn't be hard determining the right thing to do.

Of course, critical thinking can be taken too far. If you keep waiting for "all of the facts" before making a decision, you may never make a decision. You will have analysis paralysis

On a scale of 1 to 10 as a critical thinker, you don't want to be a 1or a 2 or a 9 or a 10. Somewhere in that 6-8 range is ideal. You consider alternatives then have the ability to decide in a timely manner.

Quality of thought, consideration of rewards and consequences. Sometimes, if we see the same situation over and over, we can make more snap decisions. But when we do so, we run the risk of overlooking a slight difference in the fact pattern that might yield a different result.

There is no doubt that speed is important in today's world. But don't forget, so is accuracy.

Comments

[Laura]

Critical thinking - I sort of thought I knew the meaning, but also realized, being sometimes a "knee jerk" kind of gal, that I really didn't full understand or apprectiate how to optimize my critical thinking - I don't think I'm a 1 or a 2 but I definitely not an 8. So I thought, what the heck, look up the definition , not just to learn something new, but to be more accurate as well.

According to [b]Encarta[b]Critical is "essential: absolutely necessary for the success of something" and Thinking is "the mind's ability to form thoughts."

You've convinced me that I have an opportunity to learn more about critical thinking. I can see that now knowing the definition of critical thinking is interesting. What now becomes much more important to me is raise my "score" in this competency to enhance and ensure personal and professional success.

Critical

[Prakash]

A strong moral compass does indeed greatly facilitate the ability to make strong judgment calls in critical situations.

I am looking forward to read the book "The Opposable Mind: How Successful Leaders Win Through Integrative Thinking" by Roger L Martin which elaborates on "the predisposition and the capacity to hold two [or more] diametrically opposed ideas" in one's head and then "without panicking or simply settling for one alternative or the other, produce a synthesis that is superior to either opposing idea."

http://www.amazon.com/Opposable-Mind-Successful-Integrative-Thinking/dp/1422118924

[coach suitcase]

Make youself a better person and know who you are before you try and know someone else and expect them to know you.

[Ryan Critchett]

Great post. The question I think all entrepreneurs have to ask is, "how good am I at predicting the future?"

In reality, which I know is a nebulous term but I am using it very specifically here (as it relates to nature, and the way progress works), as good as you are at predicting things by making logical sense of them, by using metrics or some fancy process, you really have to examine how much inaction you cause by thinking this way.

No, you shouldn't carelessly navigate through the land of your business but.. thinking things like "what will this do to the perception of my family?" Eh, I don't know about that.

Prediction thinking and informed decisions are good in some cases, but cause a lot of inaction in others. There's too much literature out there (and too much being taught to those poor mba students) that in the end will limit people more than it will encourage them to take action.