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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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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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• What Is Critical Thinking? | Definition & Examples

What Is Critical Thinking? | Definition & Examples

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

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

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

Critical thinking skills help you to:

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

Table of contents

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

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

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

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

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

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

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

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

Academic examples

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

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

Nonacademic examples

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

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

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

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

When encountering information, ask:

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

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

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

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

• ChatGPT vs human editor
• ChatGPT citations
• Is ChatGPT trustworthy?
• Using ChatGPT for your studies
• What is ChatGPT?
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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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Critical Thinking in Business & Why Your Company Needs It

by Ken | Apr 2, 2021 | Executive Business Coach , Leadership Coaching

Why Critical Thinking is Important and how Leaders can Help Their Team Members Develop This Important Skill

In our work as an Executive Coaching Firm, we describe our focus as organization, communication, and accountability.

An integral part of any conversation assessing the current set of leadership skills nearly always turns to critical thinking. Entrepreneurs and executives nearly always point to that skill above others as a key indicator of a team member’s value and contribution.

What is Critical Thinking?

If you were to type ‘critical thinking’ into Google, the top hit defines it as an “…intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing and/or evaluating information …” And while that is all true, I would add that those who have and hone this skill, routinely and artfully weave qualitative and quantitative information into what becomes an organized method for consistently solving problems and getting things done.

One straightforward process description , names these steps: Evaluate, Assess, Categorize, and Reason. Having this type of defined structure is broad enough that any member of your leadership team could apply that outline to nearly any issue successfully applying logic, and reducing emotional response to deliver consistently well-thought decisions.

The hurdle many stumble upon is that classic discussions of critical thinking deliberately reduce and remove creativity and emotion, which is exactly what humans bring to the table.

Our motto at Leader’s Cut is: People + Process = Profit, which is to say that if one of those components is under performing the remaining element must increase in order for the formula to balance. For any one that was told you may not use Algebra in ‘real life’, I just snuck it in.

An astute leader with sharp critical thinking skills will demonstrate mastery in ‘process’, yet lack the empathy to evaluate the People part of the equation. To our way of thinking, Making the Cut as a Leader also means that in addition to Process discipline, great leaders never lose sight of the Core Values that define the People variable in the success equation.

Why Critical Thinking is Important in Business

Your business (or division) has a “way” of doing things that differentiates in the marketplace; many will either call this your ‘intellectual property’ or ‘secret sauce’. No matter the moniker, the fact remains that how you are doing what you’re doing to uniquely serve your customers matters in creating enduring success. 

As we work with businesses to articulate their secret sauce, then memorialize the steps to deliver this amazing product/service to their client, what follows is creating a clear, concise path to Discover, Discuss, and Dissolve ‘problems’ that are ubiquitous to every business.

The alternative is that when issues (small and large) arise absent a routine to handle them, they fester, distract, magnify, and interrupt the business of business resulting in a swirl of non-productive time spent in either confusion, frustration, or both. 

Practicing the Leader’s Cut Method to not only apply critical thinking to issues, but also include your core values (our process relies on the Ikigai ), you will never lose sight of all elements of the success equation, thereby improving the durability of success (People + Process = Profit).

How Leaders Can Help Their Team Develop This Skill

Great leaders take time away from working IN the business in order to work ON the business. Establishing a clear vision, purpose, and passion, supported with powerful structure (secret sauce) and rooted firmly in your unique combination of core values is a foundation for your entire team to be Critical Thinkers that never lose sight of the human variable. 

When everyone rows in the same direction your business moves swiftly through any season or cycle of business. And when you have a clear, simple, open process to surface issues, uncover ideas, hear suggestions, and consider alternatives, you role-model the hard skill of critical thinking that incorporates the soft skill of empathy by aligning all choices in values.

If you would like to know more about how the Leader’s Cut method can help you work ON the business while stepping away from being IN your business, then our first step is to schedule a Meet & Greet with Executive Coach, Ken Kilday .

These 15 minutes are an easy way to explore, learn, and decide if Leader’s Cut is the right fit to help you organize, communicate, and create a sense of accountability that leads to new heights of success.

Let’s Talk

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Why Is Critical Thinking Important? A Survival Guide

Updated: December 7, 2023

Published: April 2, 2020

Why is critical thinking important? The decisions that you make affect your quality of life. And if you want to ensure that you live your best, most successful and happy life, you’re going to want to make conscious choices. That can be done with a simple thing known as critical thinking. Here’s how to improve your critical thinking skills and make decisions that you won’t regret.

What Is Critical Thinking?

You’ve surely heard of critical thinking, but you might not be entirely sure what it really means, and that’s because there are many definitions. For the most part, however, we think of critical thinking as the process of analyzing facts in order to form a judgment. Basically, it’s thinking about thinking.

How Has The Definition Evolved Over Time?

The first time critical thinking was documented is believed to be in the teachings of Socrates , recorded by Plato. But throughout history, the definition has changed.

Today it is best understood by philosophers and psychologists and it’s believed to be a highly complex concept. Some insightful modern-day critical thinking definitions include :

• “Reasonable, reflective thinking that is focused on deciding what to believe or do.”
• “Deciding what’s true and what you should do.”

The Importance Of Critical Thinking

Why is critical thinking important? Good question! Here are a few undeniable reasons why it’s crucial to have these skills.

1. Critical Thinking Is Universal

Critical thinking is a domain-general thinking skill. What does this mean? It means that no matter what path or profession you pursue, these skills will always be relevant and will always be beneficial to your success. They are not specific to any field.

2. Crucial For The Economy

Our future depends on technology, information, and innovation. Critical thinking is needed for our fast-growing economies, to solve problems as quickly and as effectively as possible.

3. Improves Language & Presentation Skills

In order to best express ourselves, we need to know how to think clearly and systematically — meaning practice critical thinking! Critical thinking also means knowing how to break down texts, and in turn, improve our ability to comprehend.

4. Promotes Creativity

By practicing critical thinking, we are allowing ourselves not only to solve problems but also to come up with new and creative ideas to do so. Critical thinking allows us to analyze these ideas and adjust them accordingly.

5. Important For Self-Reflection

Without critical thinking, how can we really live a meaningful life? We need this skill to self-reflect and justify our ways of life and opinions. Critical thinking provides us with the tools to evaluate ourselves in the way that we need to.

6. The Basis Of Science & Democracy

In order to have a democracy and to prove scientific facts, we need critical thinking in the world. Theories must be backed up with knowledge. In order for a society to effectively function, its citizens need to establish opinions about what’s right and wrong (by using critical thinking!).

Benefits Of Critical Thinking

We know that critical thinking is good for society as a whole, but what are some benefits of critical thinking on an individual level? Why is critical thinking important for us?

1. Key For Career Success

Critical thinking is crucial for many career paths. Not just for scientists, but lawyers , doctors, reporters, engineers , accountants, and analysts (among many others) all have to use critical thinking in their positions. In fact, according to the World Economic Forum, critical thinking is one of the most desirable skills to have in the workforce, as it helps analyze information, think outside the box, solve problems with innovative solutions, and plan systematically.

2. Better Decision Making

There’s no doubt about it — critical thinkers make the best choices. Critical thinking helps us deal with everyday problems as they come our way, and very often this thought process is even done subconsciously. It helps us think independently and trust our gut feeling.

3. Can Make You Happier!

While this often goes unnoticed, being in touch with yourself and having a deep understanding of why you think the way you think can really make you happier. Critical thinking can help you better understand yourself, and in turn, help you avoid any kind of negative or limiting beliefs, and focus more on your strengths. Being able to share your thoughts can increase your quality of life.

4. Form Well-Informed Opinions

There is no shortage of information coming at us from all angles. And that’s exactly why we need to use our critical thinking skills and decide for ourselves what to believe. Critical thinking allows us to ensure that our opinions are based on the facts, and help us sort through all that extra noise.

5. Better Citizens

One of the most inspiring critical thinking quotes is by former US president Thomas Jefferson: “An educated citizenry is a vital requisite for our survival as a free people.” What Jefferson is stressing to us here is that critical thinkers make better citizens, as they are able to see the entire picture without getting sucked into biases and propaganda.

6. Improves Relationships

While you may be convinced that being a critical thinker is bound to cause you problems in relationships, this really couldn’t be less true! Being a critical thinker can allow you to better understand the perspective of others, and can help you become more open-minded towards different views.

7. Promotes Curiosity

Critical thinkers are constantly curious about all kinds of things in life, and tend to have a wide range of interests. Critical thinking means constantly asking questions and wanting to know more, about why, what, who, where, when, and everything else that can help them make sense of a situation or concept, never taking anything at face value.

8. Allows For Creativity

Critical thinkers are also highly creative thinkers, and see themselves as limitless when it comes to possibilities. They are constantly looking to take things further, which is crucial in the workforce.

9. Enhances Problem Solving Skills

Those with critical thinking skills tend to solve problems as part of their natural instinct. Critical thinkers are patient and committed to solving the problem, similar to Albert Einstein, one of the best critical thinking examples, who said “It’s not that I’m so smart; it’s just that I stay with problems longer.” Critical thinkers’ enhanced problem-solving skills makes them better at their jobs and better at solving the world’s biggest problems. Like Einstein, they have the potential to literally change the world.

10. An Activity For The Mind

Just like our muscles, in order for them to be strong, our mind also needs to be exercised and challenged. It’s safe to say that critical thinking is almost like an activity for the mind — and it needs to be practiced. Critical thinking encourages the development of many crucial skills such as logical thinking, decision making, and open-mindness.

11. Creates Independence

When we think critically, we think on our own as we trust ourselves more. Critical thinking is key to creating independence, and encouraging students to make their own decisions and form their own opinions.

12. Crucial Life Skill

Critical thinking is crucial not just for learning, but for life overall! Education isn’t just a way to prepare ourselves for life, but it’s pretty much life itself. Learning is a lifelong process that we go through each and every day.

How to Think Critically

Now that you know the benefits of thinking critically, how do you actually do it?

How To Improve Your Critical Thinking

• Define Your Question: When it comes to critical thinking, it’s important to always keep your goal in mind. Know what you’re trying to achieve, and then figure out how to best get there.
• Gather Reliable Information: Make sure that you’re using sources you can trust — biases aside. That’s how a real critical thinker operates!
• Ask The Right Questions: We all know the importance of questions, but be sure that you’re asking the right questions that are going to get you to your answer.
• Look Short & Long Term: When coming up with solutions, think about both the short- and long-term consequences. Both of them are significant in the equation.
• Explore All Sides: There is never just one simple answer, and nothing is black or white. Explore all options and think outside of the box before you come to any conclusions.

How Is Critical Thinking Developed At School?

Critical thinking is developed in nearly everything we do. However, much of this important skill is encouraged to be practiced at school, and rightfully so! Critical thinking goes beyond just thinking clearly — it’s also about thinking for yourself.

When a teacher asks a question in class, students are given the chance to answer for themselves and think critically about what they learned and what they believe to be accurate. When students work in groups and are forced to engage in discussion, this is also a great chance to expand their thinking and use their critical thinking skills.

How Does Critical Thinking Apply To Your Career?

Once you’ve finished school and entered the workforce, your critical thinking journey only expands and grows from here!

Impress Your Employer

Employers value employees who are critical thinkers, ask questions, offer creative ideas, and are always ready to offer innovation against the competition. No matter what your position or role in a company may be, critical thinking will always give you the power to stand out and make a difference.

Careers That Require Critical Thinking

Some of many examples of careers that require critical thinking include:

• Human resources specialist
• Marketing associate
• Business analyst

Truth be told however, it’s probably harder to come up with a professional field that doesn’t require any critical thinking!

Photo by  Oladimeji Ajegbile  from  Pexels

What is someone with critical thinking skills capable of doing.

Someone with critical thinking skills is able to think rationally and clearly about what they should or not believe. They are capable of engaging in their own thoughts, and doing some reflection in order to come to a well-informed conclusion.

A critical thinker understands the connections between ideas, and is able to construct arguments based on facts, as well as find mistakes in reasoning.

The Process Of Critical Thinking

The process of critical thinking is highly systematic.

What Are Your Goals?

Critical thinking starts by defining your goals, and knowing what you are ultimately trying to achieve.

Once you know what you are trying to conclude, you can foresee your solution to the problem and play it out in your head from all perspectives.

What Does The Future Of Critical Thinking Hold?

The future of critical thinking is the equivalent of the future of jobs. In 2020, critical thinking was ranked as the 2nd top skill (following complex problem solving) by the World Economic Forum .

We are dealing with constant unprecedented changes, and what success is today, might not be considered success tomorrow — making critical thinking a key skill for the future workforce.

Why Is Critical Thinking So Important?

Why is critical thinking important? Critical thinking is more than just important! It’s one of the most crucial cognitive skills one can develop.

By practicing well-thought-out thinking, both your thoughts and decisions can make a positive change in your life, on both a professional and personal level. You can hugely improve your life by working on your critical thinking skills as often as you can.

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A Short Guide to Building Your Team’s Critical Thinking Skills

• Matt Plummer

Critical thinking isn’t an innate skill. It can be learned.

Most employers lack an effective way to objectively assess critical thinking skills and most managers don’t know how to provide specific instruction to team members in need of becoming better thinkers. Instead, most managers employ a sink-or-swim approach, ultimately creating work-arounds to keep those who can’t figure out how to “swim” from making important decisions. But it doesn’t have to be this way. To demystify what critical thinking is and how it is developed, the author’s team turned to three research-backed models: The Halpern Critical Thinking Assessment, Pearson’s RED Critical Thinking Model, and Bloom’s Taxonomy. Using these models, they developed the Critical Thinking Roadmap, a framework that breaks critical thinking down into four measurable phases: the ability to execute, synthesize, recommend, and generate.

With critical thinking ranking among the most in-demand skills for job candidates , you would think that educational institutions would prepare candidates well to be exceptional thinkers, and employers would be adept at developing such skills in existing employees. Unfortunately, both are largely untrue.

• Matt Plummer (@mtplummer) is the founder of Zarvana, which offers online programs and coaching services to help working professionals become more productive by developing time-saving habits. Before starting Zarvana, Matt spent six years at Bain & Company spin-out, The Bridgespan Group, a strategy and management consulting firm for nonprofits, foundations, and philanthropists.  

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5 Reasons Why Business Analysts Need Critical Thinking Skills

We once considered capital as the major facet of starting and running a business. However, the contemporary world is revealing something else! The brains behind a business are what enable it to succeed. There are many entrepreneurs who had the capital and resources but suffered dimensionally due to poor decision-making.

Capital alone can’t guarantee a business’s success or survival! For that matter, we shouldn’t be surprised when we see a new trend of leveraging data, data analytics, business analytics, and business analysts.

Many businesses currently hire business analysts to bridge the gap between data analytics and other business departments. To substantiate, the field of data and business analysis is among the fastest-growing sectors according to the US Bureau of Labour Statistics . At this juncture, we will explore the work of business analysts and why the modern business world is investing in them.

Business Analysts

Business analysts are professionals concerned with analyzing and assessing business strategies, operations, products, services, and investments. These professionals think about every aspect of a business in order to guide its growth and development. Unlike business analytics professionals, business analysts have less to do with data. However, deal more with critical thinking.

Business analysts must have ideal critical thinking skills. The process of reflecting on business models, strategies, partnerships, and drawing meaning from business data all require exceptional critical thinking abilities. In the real sense, besides data, business analysts are key drivers of business success.

Critical thinking is the ability to analyze and form a proper judgment depending on the available data and evidence. Data and its proper application are now becoming a tool to sustain businesses in the marketplace. With data, business managers can make informed decisions, predict future trends and stay upfront with technological advancements. Precisely, harnessing the power of data and analytics offers a competitive edge.

Business analysts can at times work with data analysts and other business departments to effectively implement strategies and practices. The ability to think critically, and assess the pros and cons of the possible decision by leveraging data prevents or minimizes costly mistakes. That’s why business analysts must be critical thinkers. Other reasons why business analysts require critical thinking skills are; 

Enhances Decision-Making

The ability to make things a reality all lies in the power of decision-making. Good business analysts must know how to make reliable decisions just like those who want to become better leaders . That’s where critical thinking skills come into play. Critical thinking is a core skill of business analysts and allows them to function optimally.

Here, the skill helps them to be objective and avoid relying on emotions to make decisions. When this is followed, they are able to remain open-minded, assess the evidence, and alternatives, reflect upon the possible outcomes and then make quality decisions. 

Professional business analysts are supposed to guide a company throughout its processes and operations. Modern business analysts are even tasked to assess a company’s potential in new areas of investments for example in cryptocurrency or when it comes to partnering with foreign companies. 

Having good business analysts who are critical thinkers can help save a business from losing millions of dollars in wrong partnerships and unprecedented times. 

Helps Understand The Latest Business Trends 

Business analysts must be up to date with the latest trends and technologies that businesses utilize to stay afloat. For example, when it comes to the introduction of new technologies like VR in a company, business analysts must assess its impact on both the company and the customers. Precisely, business analysts play a key role in the change management process , by reflecting on every aspect of the process as well as its long-term effects on stakeholders.

Business analysts must think critically and logically about the consequences of the new policies and also help in conducting user acceptance tests. Change is an intricate process and can at times result in unintended consequences that may affect every facet of a business like profits. That’s why it’s essential to have business analysts with quality critical thinking skills.  

Helps Take Possible Consequences into Consideration

When businesses make informed decisions, they are better positioned to handle undesirable consequences. Besides, they may take on possible risks with the assurance that they are associated with positive outcomes down the line. Good business analysts use their critical thinking capabilities to analyze decisions and assess risks.

They guide a business on the possible risks they can take and ones that they can’t even consider at any one point. In this, they help businesses prevent losses and changes that may hinder business progress. 

Helps Take into Account All Stakeholders’ Interests

Businesses can operate effectively when they focus on cultivating quality relationships with their stakeholders. Stakeholders are parties with a connection or interest in a company. These include shareholders, employees, suppliers, customers, and investors. All stakeholders have different expectations from the company. For example, customers expect quality products or services from a company. However, the business must ensure that the products or services are priced at the best rate, i.e one that helps it earn some percentage of profits. 

Here, business analysts are tasked with forming a common platform where stakeholders’ interests are met without costing the company in the long run. They are supposed to think about the stakeholders’ demands and analyze whether they are also in the best interest of the company. They must analyze the different business KPIs (key performance indicators) and help a business succeed. 

Helps Realize Business Opportunities & Threats 

Analyzing business opportunities is very crucial in guiding a company to succeed, although many times the facet of threats isn’t assessed excellently. Business analysts are supposed to carry out a SWOT analysis to help a business seize opportunities and eliminate threats. They analyze the market, stakeholders’ interests, and possible threats in conjunction with the business strengths and weaknesses.

It’s business analysts who think critically and emphasize how given changes might impact the business in the short and long run. They engage in data visualization to produce data-backed ideas, not just personal opinions before making decisions.

Business analysts are among the top in-demand business professionals today. That’s because they provide insights into business operations, guide decision-making processes, and help businesses stay afloat. Besides, they help businesses transform and become technologically adept since the world is becoming more and more technologically driven. 

About The Author

Jessica Robinson loves to write interesting and knowledgeable blogs regarding business management, education and life to satiate the curiosity of her lovely readers. Currently, she is serving as a content manager at the ‘Speaking Polymath’. Every piece of content that she writes demonstrates her immense love and passion for her profession.

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Why Critical Thinking Is Important (& How to Improve It)

Last updated May 1, 2023. Edited and medically reviewed by Patrick Alban, DC . Written by Deane Alban .

By improving the quality of your thoughts and your decisions, better critical thinking skills can bring about a big positive change in your life. Learn how.

The quality of your life largely depends on the quality of the decisions you make.

Amazingly, the average person makes roughly 35,000 conscious decisions every day! 

Imagine how much better your life would be if there were a way to make better decisions, day in and day out?

Well, there is and you do it by boosting a skill called critical thinking .

Learning to master critical thinking can have a profoundly positive impact on nearly every aspect of your life.

What Exactly Is Critical Thinking?

The first documented account of critical thinking is the teachings of Socrates as recorded by Plato. 

Over time, the definition of critical thinking has evolved.

Most definitions of critical thinking are fairly complex and best understood by philosophy majors or psychologists.

For example, the Foundation for Critical Thinking , a nonprofit think tank, offers this definition:

“Critical thinking is the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication, as a guide to belief and action.”

If that makes your head spin, here are some definitions that you may relate to more easily.

Critical thinking is “reasonable, reflective thinking that is focused on deciding what to believe or do.”

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Or, a catchy way of defining critical thinking is “deciding what’s true and what you should do.”

But my favorite uber-simple definition is that critical thinking is simply “thinking about thinking.”

6 Major Benefits of Good Critical Thinking Skills

Whether or not you think critically can make the difference between success and failure in just about every area of your life.

Our human brains are imperfect and prone to irrationality, distortions, prejudices, and cognitive biases .

Cognitive biases are systematic patterns of irrational thinking.

While the number of cognitive biases varies depending on the source, Wikipedia, for example, lists nearly 200 of them ! 

Some of the most well-known cognitive biases include:

• catastrophic thinking
• confirmation bias
• fear of missing out (FOMO)

Critical thinking will help you move past the limitations of irrational thinking.

Here are some of the most important ways critical thinking can impact your life.

1. Critical Thinking Is a Key to Career Success

There are many professions where critical thinking is an absolute must.

Lawyers, analysts, accountants, doctors, engineers, reporters, and scientists of all kinds must apply critical thinking frequently.

But critical thinking is a skill set that is becoming increasingly valuable in a growing number of professions.

Critical thinking can help you in any profession where you must:

• analyze information
• systematically solve problems
• generate innovative solutions
• plan strategically
• think creatively
• present your work or ideas to others in a way that can be readily understood

And, as we enter the fourth industrial revolution , critical thinking has become one of the most sought-after skills.

According to the World Economic Forum , critical thinking and complex problem-solving are the two top in-demand skills that employers look for. 

Critical thinking is considered a soft or enterprise skill — a core attribute required to succeed in the workplace . 

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• Helps increase resilience to stress to avoid mental burnout
• Supplies the brain with the fuel it needs for mental energy

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According to The University of Arizona, other soft skills include : 

• interpersonal skills
• communication skills
• digital literacy

Critical thinking can help you develop the rest of these soft skills.

Developing your critical thinking can help you land a job since many employers will ask you interview questions or even give you a test to determine how well you can think critically.

It can also help you continually succeed in your career, since being a critical thinker is a powerful predictor of long-term success.

2. Critical Thinkers Make Better Decisions

Every day you make thousands of decisions.

Most of them are made by your subconscious , are not very important, and don’t require much thought, such as what to wear or what to have for lunch. 

But the most important decisions you make can be hard and require a lot of thought, such as when or if you should change jobs, relocate to a new city, buy a house, get married, or have kids.

At work, you may have to make decisions that can alter the course of your career or the lives of others.

Critical thinking helps you cope with everyday problems as they arise.

It promotes independent thinking and strengthens your inner “BS detector.”

It helps you make sense of the glut of data and information available, making you a smarter consumer who is less likely to fall for advertising hype, peer pressure, or scams.

3. Critical Thinking Can Make You Happier

Knowing and understanding yourself is an underappreciated path to happiness. 

We’ve already shown how your quality of life largely depends on the quality of your decisions, but equally as important is the quality of your thoughts.

Critical thinking is an excellent tool to help you better understand yourself and to learn to master your thoughts.

You can use critical thinking to free yourself from cognitive biases, negative thinking , and limiting beliefs that are holding you back in any area of your life.

Critical thinking can help you assess your strengths and weaknesses so that you know what you have to offer others and where you could use improvement.

Critical thinking will enable you to better express your thoughts, ideas, and beliefs.

Better communication helps others to understand you better, resulting in less frustration for both of you.

Critical thinking fosters creativity and out-of-the-box thinking that can be applied to any area of your life.

It gives you a process you can rely on, making decisions less stressful.

4. Critical Thinking Ensures That Your Opinions Are Well-Informed

We have access to more information than ever before .

Astoundingly, more data has been created in the past two years than in the entire previous history of mankind. 

Critical thinking can help you sort through the noise.

American politician, sociologist, and diplomat Daniel Patrick Moynihan once remarked , “You are entitled to your opinion. But you are not entitled to your own facts.” 

Critical thinking ensures your opinions are well-informed and based on the best available facts.

You’ll get a boost in confidence when you see that those around you trust your well-considered opinions.

5. Critical Thinking Improves Relationships

You might be concerned that critical thinking will turn you into a Spock-like character who is not very good at relationships.

But, in fact, the opposite is true.

Employing critical thinking makes you more open-minded and better able to understand others’ points of view.

Critical thinkers are more empathetic and in a better position to get along with different kinds of people.

Critical thinking keeps you from jumping to conclusions.

You can be counted on to be the voice of reason when arguments get heated.

You’ll be better able to detect when others:

• are being disingenuous
• don’t have your best interests at heart
• try to take advantage of or manipulate you

6. Critical Thinking Makes You a Better, More Informed Citizen

“An educated citizenry is a vital requisite for our survival as a free people.”

This quote has been incorrectly attributed to Thomas Jefferson , but regardless of the source, these words of wisdom are more relevant than ever. 

Critical thinkers are able to see both sides of any issue and are more likely to generate bipartisan solutions.

They are less likely to be swayed by propaganda or get swept up in mass hysteria.

They are in a better position to spot fake news when they see it.

5 Steps to Improve Your Critical Thinking Skills

Some people already have well-developed critical thinking skills.

These people are analytical, inquisitive, and open to new ideas.

And, even though they are confident in their own opinions, they seek the truth, even if it proves their existing ideas to be wrong.

They are able to connect the dots between ideas and detect inconsistencies in others’ thinking.

But regardless of the state of your critical thinking skills today, it’s a skill set you can develop.

While there are many techniques for thinking rationally, here’s a classic 5-step critical thinking process . 

How to Improve Your Critical Thinking Skills

Clearly define your question or problem.

This step is so important that Albert Einstein famously quipped:

“If I had an hour to solve a problem, I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.”

Gather Information to Help You Weigh the Options

Consider only the most useful and reliable information from the most reputable sources.

Disregard the rest.

Apply the Information and Ask Critical Questions

Scrutinize all information carefully with a skeptic’s eye.

Not sure what questions to ask?

You can’t go wrong starting with the “5 Ws” that any good investigator asks: Who? What? Where? When? Why?

Then finish by asking “How?”

You’ll find more thought-provoking questions on this Critical Thinking Skills Cheatsheet .

Consider the Implications

Look for potential unintended consequences.

Do a thought experiment about how your solution could play out in both the short term and the long run.

Explore the Full Spectrum of Viewpoints

Examine why others are drawn to differing points of view.

This will help you objectively evaluate your own viewpoint.

You may find critical thinkers who take an opposing view and this can help you find gaps in your own logic.

Watch the Video

This TED-Ed video on YouTube elaborates on the five steps to improve your critical thinking.

Recommended: Upgrading brain health is key to making your brain work better.

• Improve your mental clarity and focus.
• Boost your memory and your ability to learn.
• Increase your capacity to think critically, solve problems, and make decisions.

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Thinking About Kahneman’s Contribution to Critical Thinking

A nobel laureate on the importance of 'thinking slow.'.

Updated April 11, 2024 | Reviewed by Lybi Ma

• Kahneman won a Nobel Memorial Prize in Economics for his work.
• He found that people are often irrational about economics.

During my Ph.D. studies, I recall focusing on reconceptualising what we know of as critical thinking to include reflective judgment (not jumping to conclusions and taking your time in your decision-making to consider the nature limits, and certainty of knowing) on par with the commonly accepted skills and dispositions components. The importance of reflective judgment wasn’t a particularly novel idea – a good deal of research on reflective judgment and similar processes akin to critical thinking had already been conducted (see King and Kitchener, 1994; Kuhn, 1999; 2000; Stanovich, 1999). However, reflective judgment – as opposed to intuitive judgment – didn’t seem to have ‘the presence’ in the discussion of critical thinking that it does today.

The same month I submitted my Ph.D. back in 2011, a book was released that massively helped to accomplish what I had been working to help facilitate – changing the terrain of thought surrounding critical thinking: Thinking, Fast, and Slow . Its author, Daniel Kahneman, passed away a couple of weeks ago at age 90. Psychology students will likely recognise the name associated with Amos Tversky and their classic work together in the 1970s on the availability, representativeness, and anchoring and adjustment heuristics (for example, Tversky and Kahneman, 1974). Indeed, such heuristics, alongside the affect heuristic (Kahneman and Frederick, 2002; Slovic and colleagues, 2002) play a large role in how we think about thinking and barriers to critical thought. In 2002, Kahneman won a Nobel Memorial Prize in Economics for his work on prospect theory concerning loss aversion and people’s often irrational approach to economics. Indeed, Kahneman’s resume is full of awards and achievements.

However, the accomplishment I will remember him best for is the publication of Thinking, Fast, and Slow and its contribution to the field of critical thinking. Funny enough, I don’t recall the term, critical thinking being used very often in the book, if at all – and I read it two or three times. No, critical thinking was not the focus of his book; rather system 1 (fast) and 2 (slow) thinking (see also Stanovich, 1999) – intuitive and reflective judgment. Not only did this book put into the spotlight many of the mechanics of reflective judgment for fellow academics and researchers of cognitive psychology, it also did so l for non-academic audiences – becoming a New York Times bestseller. Moreover, it won the Los Angeles Times Book Award for Current Interest, and the National Academy of Sciences Communication Award for Best Book (both in 2011). Good thinking was cool again in popular culture.

In the critical thinking literature, reflective judgment – regardless of what you want to call it (for example, system 2 thinking, epistemological understanding, ‘taking your time’) – is becoming more accepted as a core component of critical thinking. The field of critical thinking research and psychology more broadly, owes Kahneman a debt of gratitude for his contributions in helping shine a light on the importance of ‘thinking slow’. Thank you .

Kahneman, D. (2011). Thinking, fast and slow . 2UK: Penguin.

Kahneman, D., & Frederick, S. (2002). Representativeness revisited: Attribute substitution in intuitive judgment. Heuristics and biases: The Psychology of Intuitive Judgment , 49 (49-81), 74.

King, P. M., & Kitchener, K. S. (1994). Developing Reflective Judgment: Understanding and Promoting Intellectual Growth and Critical Thinking in Adolescents and Adults. CA: Jossey-Bass.

King, P. M., & Kitchener, K. S. (2004). Reflective judgment: Theory and research on the development of epistemic assumptions through adulthood. Educational Psychologist, 39 (1), 5–15.

Kuhn, D. (1999). A developmental model of critical thinking. Educational Researcher , 28 (2), 16-46.

Kuhn, D. (2000). Metacognitive development. Current Directions in Psychological Science , 9 (5), 178-181.

Slovic, P., Finucane, M., Peters, E., & MacGregor, D. G. (2002). Rational actors or rational fools: Implications of the affect heuristic for behavioral economics. The Journal of Socio-economics , 31 (4), 329-342.

Stanovich, K.E. (1999) Who is rational? Studies of individual differences in reasoning. Mahwah, Erlbaum.

Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases: Biases in judgments reveal some heuristics of thinking under uncertainty. Science , 185 (4157), 1124-1131.

Christopher Dwyer, Ph.D., is a lecturer at the Technological University of the Shannon in Athlone, Ireland.

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