Why Successful Leaders Learn to Think Critically and Manage with Intelligence!

In 2010, The American Management Association, a wide-ranging piece of research, noted that 68% of those executives surveyed identified ‘Critical Thinking’ as an essential skill for managers – and 75% said these skills would become even more valuable. And yet, in 2023, the World Economic Forum revealed that Critical Thinking is still the essential management skill organisations lack across the globe, closely followed by poor communication skills and an inability to deal with ambiguity and apply creativity to solve problems.

Why is Critical Thinking so valuable – and why do smart and intelligent executives still struggle to apply this in their leadership practice? In this article, we will explain what Critical Thinking is, explore its growing demand, how it relates to a broader set of emotional and human skills sought by organisations – and why successful organisations invest in training their executives to manage better.

What is Critical Thinking?

Critical Thinking describes the cognitive process that involves analysing, evaluating, and synthesising information to form well-reasoned judgments and make informed decisions. It is a higher-order thinking skill beyond simply accepting information at face value. Instead, critical thinkers actively and systematically question, interpret, and assess ideas, arguments, and evidence. Of course, there is a rich history of finding and understanding knowledge in philosophy, science, psychology and sociology worldwide and cultures.

According to the UK’s Chartered Institute of Professional Development (CIPD) – Critical Thinking is closely related to the idea of an evidence-based approach to decisions;

“An evidence-based approach to decision-making is based on using critical Thinking and the best available evidence. It makes decision-makers less reliant on anecdotes, received wisdom and personal experience – sources that are not trustworthy on their own.” – CIPD (2023)

The Role of Critical Thinking in Decision Making

People professionals must adopt this approach because of the considerable impact management decisions have on the working lives and well-being of people in all sorts of organisations worldwide. The competency of Critical Thinking can be broken down into specific skills and abilities – which, most importantly, can be learned and taught in training and development.

Analysing: Critical thinkers break down complex information into parts to better understand the underlying concepts, assumptions, and evidence.

Evaluating: They assess the reliability, credibility, and relevance of the information and sources that support a claim or argument.

Reasoning: Critical thinkers use logical and coherent reasoning to conclude from the available evidence and information.

Problem-solving: They systematically approach problems, identify potential solutions, and evaluate their effectiveness.

Open-mindedness: Critical thinkers are willing to consider alternative viewpoints and are receptive to changing their beliefs in light of new evidence or persuasive arguments.

Reflecting: They regularly reflect on their thought processes and biases to improve their thinking skills and decision-making abilities.

Communication: Critical thinkers can articulate their thoughts clearly and effectively, using evidence and logical reasoning to support their viewpoints.

Business leaders, consultants and recruiters often emphasise seeking critical thinking skills to grow and innovate. As the saying says, if we only do as we always have, we will always get what we have always had. And doing what we have always done in a world of trans-global competitors, rapid change and where your most important assets walk out the door every evening is not a sensible or sustainable base for the future.

The Centre For Evidence-Based Management points out that decision-making requires the manager to analyse different sources of information, facts and detail and synthesise this into a rational decision. They identify that the critical thinker can ascertain knowledge from four main areas; from published or scientific research and the work of other experts outside the organisation, from data, facts and information from within their organisation, from their own experience and judgement from their practice, and the views of other stakeholders and opinion leaders.

However, the kind of critical thinking, creativity and problem-solving required means the leader can question the reliability and validity of these very different sources. For example, do we believe everything we read in industry magazines and newspapers? How do we know the sales data and market knowledge, and feedback in a report from our team is accurate? Are there gaps in our experience, and are we biased or prejudiced based on how we know the world? And how important is it to respect the views of communities, political institutions, social trends and the rapidly changing needs and wants of consumers?

Our search for intelligence, meaning and understanding of facts and reality did not begin in business schools and management textbooks in the 2020s. Critical Thinking is, of course, founded upon thousands of years of philosophical reasoning. Socrates (469-399 BCE), considered one of the earliest critical thinkers of the classical age, promoted questioning opinions and our thoughts (the Socratic method) to encourage critical examination and analysis of ideas. Later, Francis Bacon (1561-1626), the English philosopher and scientist, emphasised the importance of empirical evidence and the scientific method in critical inquiry, and John Locke (1632-1704) laid the groundwork for modern critical thinking by emphasising the role of observation and experience in acquiring knowledge.

The Need for Emotional Intelligence

In the 20th Century, the educational reformer John Dewey (1859-1952) emphasised the importance of reflective thinking and problem-solving in education, promoting critical thinking as an essential goal in developing intelligence beyond repeating stored facts and answers. A contemplative thinker can ‘mark their homework’ – and appreciate their own bias and gaps in their knowledge. As we shall see, this is also a key element of Emotional Intelligence. This is an essential aspect of the entire self-development and self-improvement movement, culminating in today’s emphasis on developing a Growth Mindset – popularised by Carole Dweck.

The most influential researchers thinking today, such as Daniel Kahneman and Cal Newport, take a more social and psychological approach to how we think and work more critically.

Kahneman identifies two Systems of our Thinking. Our System 1 Thinking is fast, automatic, and intuitive. It operates without conscious effort and is responsible for quick decision-making and reacting to stimuli. This type of thinking relies on heuristics (mental shortcuts and patterns) – to make judgments. System 1 thinking is helpful for everyday tasks. It allows us to respond rapidly to situations, and we need this to function quickly. System 2 thinking is slower, more deliberate, and Analytical Thinking. It involves conscious thought, reasoning, and effortful mental processes that require concentration and are more taxing. However, in his more recent research (investigating failures in international finance and business models) – Kahneman points out that good mathematics, analysis and intelligence can still lead to bad decisions and a group-think mentality, leading to a failure to discuss, debate or analyse. Kahneman’s research has shown that System 1 and System 2 thinking is crucial in our decision-making processes. We often move too quickly, and if our poor reasoning is supported by others (due to social and management cultures) – then it is reinforced.

The technology researcher Cal Newport, in a similar way, promotes a process of Deep Work, consciously aiming to slow down and focus and think critically about our process. Leading In Uncertain Times

Conclusion

Critical Thinking is essential in various aspects of life, including education, business, science, and everyday decision-making. It helps individuals become more independent and well-rounded thinkers, capable of making informed choices and avoiding cognitive biases and fallacies. Cultivating critical thinking skills (as described above) – can lead to better problem-solving, enhanced creativity, and a more reliable understanding of the world.

However – our world today, and our place within it, is facing rapid change, and our ability to think critically is more complex than ever. In the 1970s, the brilliant US sociologist Alvin Toffler predicted that we would meet a technological and social Future Shock – where things are moving too quickly to keep up with, creating emotional and knowledge uncertainty. Our broader environment is often best understood as Volatile, Uncertain, Complicated and Ambiguous (‘VUCA’) – the most influential leaders realise that their worldviews may be inaccurate and that societies, organisations and people – are changing. Indeed, we all appreciate the speed of change and that Future Shock affects countries, people and businesses. In a recent example, Reuters revealed that the AI service Chat GBT reached 100 million users within two months of launching – the same measure of user growth and platform success that took TikTok nine months, Instagram two and a half years and incredibly, for Netflix – eighteen years.

Therefore, the accurate and logical information about the environment and our organisation’s place within it that was valid from last year may need to be corrected today.

However, as we shall see – this is not as straightforward as it sounds in a modern environment. Whilst logic and reason may be acceptable and suitable for assessing statistics, work processes and pricing decisions – how do we apply this kind of evidence and thinking to more human choices in the workplace? What happens if talented people are just not happy? What about a valuable team member having health issues, family or other problems that impact their performance? Do we look at output and measures and judge them on that – or do we need to take a more nuanced and apply Emotional Intelligence to our Critical Thinking?

Leaders must, therefore, remain critical. Not just of our information, but of how our organisation is placed and perhaps most challenge – in ourselves too. And this leads to the importance of Emotional Intelligence & Critical Thinking.

Enrol in Creativity and Innovation training courses offered by GLOMACS today to embrace the power of creativity, critical thinking, and open innovation to stand out, succeed, and create a lasting impact in your personal and professional endeavours.