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The Power of Critical Thinking: An Essential Leadership Skill

istock.com/Jorm Sangsorn

9 April 2023

Today, every leader has to navigate a world of unwarranted challenges, complex decisions, unending pressures, and an increasingly demanding environment marked by uncertainty and pace. Broadly speaking, the roles and responsibilities shouldered by leaders across geographies and industries are the same. Then what differentiates truly successful, high-performing leaders from the rest? Exceptional leaders possess exceptional critical thinking skills.

Ask any executive coach or leadership expert and you will find how very vital this skill is for effective decision-making, surviving in this hyper-competitive world, and leading organizations to long-term success. While some leaders are far more naturally adept at critical thinking, I believe the silver lining lies in the fact that it is a skill that can be developed and perfected.


The criticality of critical thinking


The effectiveness of a leader is shaped (significantly) by the quality of the decisions they take. A good decision is not only free from bias and prejudice but is also always purposeful and aligned with the bigger picture. No surprise then that critical thinking holds such high value for successful leaders. Applying this skill empowers leaders to make richer, more informed, and more progressive decisions that serve a collective goal. It is the foundational element of strategic thinking and problem-solving. It enables leaders and their organizations to be more agile in their thinking, inspire change, and drive better results for everyone. Without it, organizations can find themselves lacking in relevance and ill-equipped to leverage strategic business opportunities.


So, what is critical thinking as a core competency for leaders all about and how can one nurture and strengthen it?


  • The more, the merrier

    Effective critical thinking involves taking into account the full range of possibilities for a problem, including emotional, cognitive, intellectual, and psychological factors. Great critical thinkers approach a problem/ decision by collecting ample high-quality data—the more, the better. To gather such raw data, leaders can leverage analytics technology or data-sourcing tools and create a diverse pool of information ranging from facts, statistics, trends, and insights. This helps create a solid base for every decision and removes any scope for assumptions or biases.


  • Make data your ally

    In today’s world, data is essential to drive solid decision-making and plays a significant role in accurately predicting the future. Critical thinking is the ability to absorb, examine, and analyze this data through an unbiased lens to extract valuable, logical inferences and insights. Unfortunately, it is far too common, especially in misled startups, to be reckless with data—overlooking predictions or proven facts and making decisions based on assumptions! For any organization, this is dangerous and often fatal. In recent times, we have seen examples of poor critical thinking leading to the demise of well-established large companies, making it clear that data ignorance has consequences for everyone.


  • Challenge everything

    What made leaders successful yesterday will most likely not be effective tomorrow. The pace of change is relentless, and leaders need to keep up.


    High-performing and critical-thinking leaders draw on past experiences when navigating difficult situations, but they do not let their past experiences limit their ideas and perspectives.


    Seasoned critical thinkers understand the value of the past – knowing that it can be used to extract valuable data, insights, and observations. However, they question everything, not from a place of doubt but with a learning-focused approach. For example, if a manual process may have worked in the past but might be completely inefficient in today’s fast-paced world, a critical-thinking leader will be open to embracing change in the form of new technology or ideas that will help drive productivity within the organization. Asking questions is an essential component and a great tool for critical thinkers.


    I also believe one of the most important aids of critical thinking is unbiased, active listening. An effective decision-maker is one who is open to new perspectives — this not only includes one’s peers but also employees, who may bring their diverse experiences/backgrounds to the table, and therefore offer a more unique and nuanced understanding of a certain topic.


In conclusion…


Critical thinking can be a leader’s best weapon of choice. By developing their critical-thinking skills, leaders can focus on building the picture and understanding the difference between short-term gains and long-term outcomes. Do you think you often jump to conclusions, or do you use a logical, analytic process as you work toward solving a problem? Are you able to put aside biases and assumptions during analysis and decision-making? The answer to these questions can help you determine the kind of decision-maker you are and how you can improve upon your critical-thinking abilities.

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