Our Recommendations

  • Best Small Business Loans for 2024
  • Businessloans.com Review
  • Biz2Credit Review
  • SBG Funding Review
  • Rapid Finance Review
  • 26 Great Business Ideas for Entrepreneurs
  • Startup Costs: How Much Cash Will You Need?
  • How to Get a Bank Loan for Your Small Business
  • Articles of Incorporation: What New Business Owners Should Know
  • How to Choose the Best Legal Structure for Your Business

Small Business Resources

  • Business Ideas
  • Business Plans
  • Startup Basics
  • Startup Funding
  • Franchising
  • Success Stories
  • Entrepreneurs
  • The Best Credit Card Processors of 2024
  • Clover Credit Card Processing Review
  • Merchant One Review
  • Stax Review
  • How to Conduct a Market Analysis for Your Business
  • Local Marketing Strategies for Success
  • Tips for Hiring a Marketing Company
  • Benefits of CRM Systems
  • 10 Employee Recruitment Strategies for Success
  • Sales & Marketing
  • Social Media
  • Best Business Phone Systems of 2024
  • The Best PEOs of 2024
  • RingCentral Review
  • Nextiva Review
  • Ooma Review
  • Guide to Developing a Training Program for New Employees
  • How Does 401(k) Matching Work for Employers?
  • Why You Need to Create a Fantastic Workplace Culture
  • 16 Cool Job Perks That Keep Employees Happy
  • 7 Project Management Styles
  • Women in Business
  • Personal Growth
  • Best Accounting Software and Invoice Generators of 2024
  • Best Payroll Services for 2024
  • Best POS Systems for 2024
  • Best CRM Software of 2024
  • Best Call Centers and Answering Services for Busineses for 2024
  • Salesforce vs. HubSpot: Which CRM Is Right for Your Business?
  • Rippling vs Gusto: An In-Depth Comparison
  • RingCentral vs. Ooma Comparison
  • Choosing a Business Phone System: A Buyer’s Guide
  • Equipment Leasing: A Guide for Business Owners
  • HR Solutions
  • Financial Solutions
  • Marketing Solutions
  • Security Solutions
  • Retail Solutions
  • SMB Solutions

Business News Daily provides resources, advice and product reviews to drive business growth. Our mission is to equip business owners with the knowledge and confidence to make informed decisions. As part of that, we recommend products and services for their success.

We collaborate with business-to-business vendors, connecting them with potential buyers. In some cases, we earn commissions when sales are made through our referrals. These financial relationships support our content but do not dictate our recommendations. Our editorial team independently evaluates products based on thousands of hours of research. We are committed to providing trustworthy advice for businesses. Learn more about our full process and see who our partners are here .

Why Critical Thinking Matters in Your Business

Critical thinking should become a second-nature skill for leaders and employees across your organization.

author image

Table of Contents

Many professionals hope to pursue careers they’re passionate about so they can find joy and meaning in their work. Caring deeply about your work is vital for engagement and productivity, but balancing emotions with critical thinking is essential in the workplace. 

When employees engage in critical thinking, they use an independent, reflective thought process to evaluate issues and solve problems based on knowledge and objective evidence. 

Critical thinking skills can guide your organization toward success, but to truly maximize the problem-solving benefits of critical thinking, it’s crucial to teach this skill to your entire team. We’ll explore critical thinking skills and how to teach them in the workplace to help your business improve its decision-making and problem-solving. 

What is critical thinking?

Jen Lawrence, co-author of Engage the Fox: A Business Fable About Thinking Critically and Motivating Your Team , defines critical thinking as “the ability to solve problems effectively by systematically gathering information about an issue, generating further ideas involving a variety of perspectives, evaluating the information using logic, and making sure everyone involved is on board.”

This is a complex definition for a challenging concept. Though critical thinking might seem as straightforward as stepping back and using a formal thinking process instead of reacting instinctively to conflicts or problems, it is actually a much more challenging task.

Critical thinking’s ultimate goal is ensuring you have the best answer to a problem with maximum buy-in from all parties involved – an outcome that will ultimately save your business time, money and stress.

Why is critical thinking essential in the workplace?

A World Economic Forum report revealed that critical thinking is one of the most in-demand career skills employers seek when trying to attract and retain the best employees – and employers believe critical thinking skills will become even more necessary in the coming years. 

Critical thinking in the workplace guarantees objective and efficient problem-solving, ultimately reducing costly errors and ensuring that your organization’s resources are used wisely. Team members employing critical thinking can connect ideas, spot errors and inconsistencies, and make the best decisions most often. 

Employees with critical thinking are also more likely to accomplish the following:

  • Analyzing information
  • Thinking outside the box
  • Coming up with creative solutions to sudden problems
  • Devising thought-through, systematic plans
  • Requiring less supervision

What are critical thinking skills?

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

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

What are the benefits of critical thinking in the workplace?

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

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

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

How do you teach critical thinking in the workplace?

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

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

How do you identify successful critical thinking?

Successful critical thinking happens during a crisis, not after.

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

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

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

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

Critical thinking is the key to your business success

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

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

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

thumbnail

Building Better Businesses

Insights on business strategy and culture, right to your inbox. Part of the business.com network.

Critical Thinking Definition, Skills, and Examples

  • Homework Help
  • Private School
  • College Admissions
  • College Life
  • Graduate School
  • Business School
  • Distance Learning

what does critical thinking mean in business

  • Indiana University, Bloomington
  • State University of New York at Oneonta

Critical thinking refers to the ability to analyze information objectively and make a reasoned judgment. It involves the evaluation of sources, such as data, facts, observable phenomena, and research findings.

Good critical thinkers can draw reasonable conclusions from a set of information, and discriminate between useful and less useful details to solve problems or make decisions. These skills are especially helpful at school and in the workplace, where employers prioritize the ability to think critically. Find out why and see how you can demonstrate that you have this ability.

Examples of Critical Thinking

The circumstances that demand critical thinking vary from industry to industry. Some examples include:

  • A triage nurse analyzes the cases at hand and decides the order by which the patients should be treated.
  • A plumber evaluates the materials that would best suit a particular job.
  • An attorney reviews the evidence and devises a strategy to win a case or to decide whether to settle out of court.
  • A manager analyzes customer feedback forms and uses this information to develop a customer service training session for employees.

Why Do Employers Value Critical Thinking Skills?

Employers want job candidates who can evaluate a situation using logical thought and offer the best solution.

Someone with critical thinking skills can be trusted to make decisions independently, and will not need constant handholding.

Hiring a critical thinker means that micromanaging won't be required. Critical thinking abilities are among the most sought-after skills in almost every industry and workplace. You can demonstrate critical thinking by using related keywords in your resume and cover letter and during your interview.

How to Demonstrate Critical Thinking in a Job Search

If critical thinking is a key phrase in the job listings you are applying for, be sure to emphasize your critical thinking skills throughout your job search.

Add Keywords to Your Resume

You can use critical thinking keywords (analytical, problem solving, creativity, etc.) in your resume. When describing your work history, include top critical thinking skills that accurately describe you. You can also include them in your resume summary, if you have one.

For example, your summary might read, “Marketing Associate with five years of experience in project management. Skilled in conducting thorough market research and competitor analysis to assess market trends and client needs, and to develop appropriate acquisition tactics.”

Mention Skills in Your Cover Letter

Include these critical thinking skills in your cover letter. In the body of your letter, mention one or two of these skills, and give specific examples of times when you have demonstrated them at work. Think about times when you had to analyze or evaluate materials to solve a problem.

Show the Interviewer Your Skills

You can use these skill words in an interview. Discuss a time when you were faced with a particular problem or challenge at work and explain how you applied critical thinking to solve it.

Some interviewers will give you a hypothetical scenario or problem, and ask you to use critical thinking skills to solve it. In this case, explain your thought process thoroughly to the interviewer. He or she is typically more focused on how you arrive at your solution rather than the solution itself. The interviewer wants to see you analyze and evaluate (key parts of critical thinking) the given scenario or problem.

Of course, each job will require different skills and experiences, so make sure you read the job description carefully and focus on the skills listed by the employer.

Top Critical Thinking Skills

Keep these in-demand skills in mind as you refine your critical thinking practice —whether for work or school.

Part of critical thinking is the ability to carefully examine something, whether it is a problem, a set of data, or a text. People with analytical skills can examine information, understand what it means, and properly explain to others the implications of that information.

  • Asking Thoughtful Questions
  • Data Analysis
  • Interpretation
  • Questioning Evidence
  • Recognizing Patterns

Communication

Often, you will need to share your conclusions with your employers or with a group of classmates or colleagues. You need to be able to communicate with others to share your ideas effectively. You might also need to engage in critical thinking in a group. In this case, you will need to work with others and communicate effectively to figure out solutions to complex problems.

  • Active Listening
  • Collaboration
  • Explanation
  • Interpersonal
  • Presentation
  • Verbal Communication
  • Written Communication

Critical thinking often involves creativity and innovation. You might need to spot patterns in the information you are looking at or come up with a solution that no one else has thought of before. All of this involves a creative eye that can take a different approach from all other approaches.

  • Flexibility
  • Conceptualization
  • Imagination
  • Drawing Connections
  • Synthesizing

Open-Mindedness

To think critically, you need to be able to put aside any assumptions or judgments and merely analyze the information you receive. You need to be objective, evaluating ideas without bias.

  • Objectivity
  • Observation

Problem-Solving

Problem-solving is another critical thinking skill that involves analyzing a problem, generating and implementing a solution, and assessing the success of the plan. Employers don’t simply want employees who can think about information critically. They also need to be able to come up with practical solutions.

  • Attention to Detail
  • Clarification
  • Decision Making
  • Groundedness
  • Identifying Patterns

More Critical Thinking Skills

  • Inductive Reasoning
  • Deductive Reasoning
  • Noticing Outliers
  • Adaptability
  • Emotional Intelligence
  • Brainstorming
  • Optimization
  • Restructuring
  • Integration
  • Strategic Planning
  • Project Management
  • Ongoing Improvement
  • Causal Relationships
  • Case Analysis
  • Diagnostics
  • SWOT Analysis
  • Business Intelligence
  • Quantitative Data Management
  • Qualitative Data Management
  • Risk Management
  • Scientific Method
  • Consumer Behavior

Key Takeaways

  • Demonstrate you have critical thinking skills by adding relevant keywords to your resume.
  • Mention pertinent critical thinking skills in your cover letter, too, and include an example of a time when you demonstrated them at work.
  • Finally, highlight critical thinking skills during your interview. For instance, you might discuss a time when you were faced with a challenge at work and explain how you applied critical thinking skills to solve it.

University of Louisville. " What is Critical Thinking ."

American Management Association. " AMA Critical Skills Survey: Workers Need Higher Level Skills to Succeed in the 21st Century ."

  • Questions for Each Level of Bloom's Taxonomy
  • Critical Thinking in Reading and Composition
  • Bloom's Taxonomy in the Classroom
  • How To Become an Effective Problem Solver
  • 2020-21 Common Application Essay Option 4—Solving a Problem
  • Introduction to Critical Thinking
  • Creativity & Creative Thinking
  • Higher-Order Thinking Skills (HOTS) in Education
  • 6 Skills Students Need to Succeed in Social Studies Classes
  • College Interview Tips: "Tell Me About a Challenge You Overcame"
  • Types of Medical School Interviews and What to Expect
  • The Horse Problem: A Math Challenge
  • What to Do When the Technology Fails in Class
  • What Are Your Strengths and Weaknesses? Interview Tips for Teachers
  • A Guide to Business Letters Types
  • Landing Your First Teaching Job

Get expert insights delivered straight to your inbox.

Everything You Need to Know About Critical Thinking Skills for Business Leaders

9 Min Read | Oct 3, 2023

Ramsey

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.

Ready to Level Up Your Business?

Find out your Stage of Business with our free assessment and get additional resources to help you level up by focusing on the right things at the right time.

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.

Bullseye

You probably thought running a business sounded fun—until you realized it would actually run you. Discover the EntreLeadership System—the small-business road map that takes the guesswork out of growth.

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

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

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

Critical thinking helps you:

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

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

Related article: What is Transformational Leadership?

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

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

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

Examples of Critical Thinking Skills in Business

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

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

The Critical Thinking Process

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

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

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

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

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

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

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

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

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

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

How to Think More Critically

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

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

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

What’s Next: Decision Time

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

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

Did you find this article helpful? Share it!

Ramsey Solutions

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.

What Are the 4 DISC Personality Types?

People are your greatest resource and biggest challenge in business. Teach your team to focus more on we and less on me by understanding DISC personality types.

Ramsey

EntreLeadership: What Are the 5 Stages of Business?

Running a business is a lot like running a marathon. You need a clear path, plan and perseverance to get ahead. Learn which stage of business you’re on so you can build a lasting legacy.

  • Open training
  • Team training

What is Critical Thinking and Why is it Valuable in the Workplace?

  • Articles and Resources
  • > Personal Effectiveness and Preparing for Change
  • > What is Critical Thinking and Why is it Valuable in the Workplace?

There are times at work when you simply have to “do.” A tight deadline, a demanding project outline, or a highly particular superior might mean that it makes sense to complete a task without too much mental tinkering. But work like this can be unsustainable and worse — it won’t leverage your ability to think critically.

There is value in thinking critically in every aspect of your life. From making decisions in your personal life, to interrogating the media you consume, to assessing your work with a critical eye, applying critical thinking is an essential skill everyone should be trying to hone.

At your workplace, critical thinking can distinguish you as a leader, and a valuable mind to bounce ideas off. It can help improve the quality of your work, and the perception those higher up the chain have of you.

Here’s what you need to know about critical thinking in the workplace:

What Exactly is “Critical Thinking”?

  In a nutshell, critical thinking is the ability to think reasonably, detaching yourself from personal bias, emotional responses, and subjective opinions. It involves using the data at hand to make a reasoned choice without falling prey to the temptations of doing things simply because they’ve always been done a certain way.

Critical thinking takes time. It might be quicker simply to take instruction at face value, or rely on the traditions of your team. But without analyzing the reasons behind decisions and tasks, it becomes extremely easy to adopt bad habits. This might be time-wasting meetings, inefficient uses of effort, or poor interactions with team members. Taking the time to ask “why” you’re doing something is the first step to thinking critically.

Sometimes, data is available which allows you to make reasoned decisions based on absolute facts. If you can show that a new best practice can objectively improve current processes with hard data, you’ve used the very basics of critical thinking. That said, actual numbers aren’t always available when making a decision. Real critical thinking involves taking a careful look at situations and making a decision based on what is known, not what is felt.

Why Is Critical Thinking Important in the Workplace?

The short answer to the above question is this: critical thinkers make the best decisions, most often. And in the workplace, where choices about how to complete tasks, communicate information, relate with coworkers, and develop strategy are so common, critical thinkers are extremely valuable.

A savvy hiring manager will make this part of the recruitment process. It’s pretty easy to gauge how someone is inclined to solve a problem — ask them how they would deal with a specific situation, and give them the opportunity to use their critical thinking skills, versus deferring to an emotional, or prescribed reaction. Employing people who can think and act reasonably will pay enormous dividends down the road.

Using your critical thinking skills in the workplace will define you as a problem solver. This is not only useful career-wise (although having upper-level people at your company think highly of you is undoubtedly a benefit) it also establishes you as a leader among your fellow team members. Demonstrating your ability to solve problems and accomplish goals effectively will help instill confidence in you with all your coworkers.

How to Use Critical Thinking in the Workplace

The first step to actually using critical thinking is approaching every situation with an open mind. You need to be receptive to all information available, not just the kind that satisfies your preconceived notions or personal biases. This can be easier said than done, of course — lessons learned and beliefs held are often done so with a reason. But when it comes to critical thinking, it’s important to analyze each situation independently.

Once you’ve analyzed a situation with an open mind, you need to consider how to communicate it properly. It’s all very well and good to approach situations with objective logic, but it doesn’t do you any favours to sound like  Mr. Spock  when you’re conveying your conclusions. Be tactful, patient and humble when you are explaining how and why you’ve come to decisions. Use data if available to support your findings, but understand that not everyone is able to remove emotion from situations.

what does critical thinking mean in business

The final, and perhaps least obvious, application with critical thinking is creativity. Often, getting creative means pushing boundaries and reshaping convention. This means taking a risk — one that can often be worth the reward. Using a critical thinking approach when getting creative can help you mitigate the risk, and better determine what value your creativity can bring. It will help you and your team try new things and reinvent current processes while hopefully not rocking the boat too much.

Learn More About Critical Thinking

Critical thinking is a valuable skill for all aspects of your life. It benefits problem solving, creativity, and teamwork. And it translates particularly well to the workplace, where it can distinguish you as a valuable employee and leader.

Taking the extra time to examine things objectively, make decisions based on logic, and communicate it tactfully will help you, those you work with, and your work goals prosper. To learn more about how to do that, have a look at our  Critical Thinking and Problem Solving for Effective Decision-Making   workshop and register today!

Let us help you create your training solution

Hello we'd love to hear from you.

Complete the form below or reach us at: [email protected] , or 613-234-2020

Contact details

To help you.

  • I wish to subscribe to PMC Training content.

Welcome to our new website!

We appreciate your patience as we add the finishing touches. In the meantime, go and explore!

Cookie Usage Disclaimer: This website uses cookies to enhance your browsing experience. By continuing to use this site, you consent to our use of cookies. For more information, please review our Privacy Policy .

Have a language expert improve your writing

Run a free plagiarism check in 10 minutes, generate accurate citations for free.

  • Knowledge Base
  • Working with sources
  • 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.

Scribbr Citation Checker New

The AI-powered Citation Checker helps you avoid common mistakes such as:

  • Missing commas and periods
  • Incorrect usage of “et al.”
  • Ampersands (&) in narrative citations
  • Missing reference entries

what does critical thinking mean in business

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?
  • Chicago style
  • Paraphrasing

 Plagiarism

  • Types of plagiarism
  • Self-plagiarism
  • Avoiding plagiarism
  • Academic integrity
  • Consequences of plagiarism
  • Common knowledge

Don't submit your assignments before you do this

The academic proofreading tool has been trained on 1000s of academic texts. Making it the most accurate and reliable proofreading tool for students. Free citation check included.

what does critical thinking mean in business

Try for free

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.

Cite this Scribbr article

If you want to cite this source, you can copy and paste the citation or click the “Cite this Scribbr article” button to automatically add the citation to our free Citation Generator.

Ryan, E. (2023, May 31). What Is Critical Thinking? | Definition & Examples. Scribbr. Retrieved June 24, 2024, from https://www.scribbr.com/working-with-sources/critical-thinking/

Is this article helpful?

Eoghan Ryan

Eoghan Ryan

Other students also liked, student guide: information literacy | meaning & examples, what are credible sources & how to spot them | examples, applying the craap test & evaluating sources, get unlimited documents corrected.

✔ Free APA citation check included ✔ Unlimited document corrections ✔ Specialized in correcting academic texts

More From Forbes

Critical thinking: what is it and how can you develop this skill.

Forbes Human Resources Council

  • Share to Facebook
  • Share to Twitter
  • Share to Linkedin

Founder and Head of the international IT recruitment company Lucky Hunter .

I have already raised the issue of the importance of developing emotional intelligence in previous pieces, and today I would like to talk about why critical thinking also matters for employees—especially top managers of companies.

First of all, let's define what critical thinking is. In general, it is the ability to objectively analyze events, incoming information and arguments; approach an issue from different sides; and form conclusions based on the analysis. Developing critical thinking is relevant not only for work but also for life—today we're inundated with huge amounts of information every day, and in order to be able to analyze this information and determine our position based on balanced facts, it is important to look at situations critically.

Critical thinking allows you to always soberly assess the situations taking place in your work, give an objective assessment, including your own actions and the actions of others, effectively negotiate and find the best way out of ambiguous situations. That is why large companies, when hiring employees, pay close attention to the soft skills of a candidate, especially if they are applying for top positions.

So, how can you develop critical thinking?

Practice analyzing.

Best Travel Insurance Companies

Best covid-19 travel insurance plans.

Turn the events happening around you into facts. Learn to separate them from emotions. Emotions often prevent us from thinking critically, because they reduce everything to the emotional component, which cannot be relied on. Study different points of view on a specific topic. Read more, broaden your horizons and work with information—the more you “dissect” any information material, the more chances you have to get to the bottom of it.

Pay attention to self-criticism.

There should always be a certain amount of healthy self-criticism in your actions and behavior. The keyword here is healthy because it is important to maintain balance and not slip into self-flagellation. Learn to adequately evaluate yourself and your actions, and determine your strengths and growth areas. I work in recruiting, so I will give an example from my practice: In the work of a recruiter, self-criticism is vital for an objective assessment of a candidate, because, in order to evaluate others, you must first be able to objectively evaluate yourself.

Build productive communication.

If you conduct a dialogue calmly and kindly, without insults and rudeness, truly listening and hearing the interlocutor, you thereby increase the chances of getting some useful insight into the process of interaction. It can give you the opportunity to look at the situation from a new angle and come to a conclusion that you would not have come to otherwise. Therefore, the ability to conduct effective, productive communication also affects the development of critical thinking.

Develop your forecasting skills.

This point is quite closely related to the first one. Analyze information and build forecasts based on the analysis, think over the likely development of events and try to answer for yourself why it will be exactly like this. Such forecasting, again, allows you to study a specific situation from different sides, get certain insights into the process and come to an objective conclusion.

Today, it's crucial for employees and managers to develop the skill of thinking critically—all you need to do is start. The result could have a positive impact on all fields of your life, both personal and professional, because a high level of critical thinking has a good effect on communication (including business). It allows you to form objective conclusions and cut off the excess of information garbage, focusing on facts and analyzing them.

Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?

Tatiana Melnichuk

  • Editorial Standards
  • Reprints & Permissions

Ideas and insights from Harvard Business Publishing Corporate Learning

Learning and development professionals walking and talking

To Improve Critical Thinking, Don’t Fall into the Urgency Trap

what does critical thinking mean in business

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 .

Speech bubbles

Let’s talk

Change isn’t easy, but we can help. Together we’ll create informed and inspired leaders ready to shape the future of your business.

© 2024 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

  • Privacy Policy
  • Copyright Information
  • Terms of Use
  • About Harvard Business Publishing
  • Higher Education
  • Harvard Business Review
  • Harvard Business School

LinkedIn

We use cookies to understand how you use our site and to improve your experience. By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Cookie and Privacy Settings

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

what does critical thinking mean in business

Catch These Benefits! 13 Examples of Critical Thinking in the Workplace

image

Max 8 min read

Catch These Benefits! 13 Examples of Critical Thinking in the Workplace

Click the button to start reading

Your team is dealing with a sudden decrease in sales, and you’re not sure why.

When this happens, do you quickly make random changes and hope they work? Or do you pause, bring your team together , and analyze the problem using critical thinking?

In the pages ahead, we’ll share examples of critical thinking in the workplace to show how critical thinking can help you build a successful team and business.

Ready to make critical thinking a part of your office culture?

Let’s dive in!

What Is Critical Thinking? A Quick Definition

Critical thinking is the systematic approach of being a sharp-minded analyst. It involves asking questions, verifying facts, and using your intellect to make decisions and solve problems.

The process of thinking critically is built upon a foundation of six major steps:

6 Steps of Critical Thinking

  • Comprehension
  • Application
  • Creation/Action

First, you gather “knowledge” by learning about something and understanding it. After that, you put what you’ve learned into action, known as “application.” When you start looking closely at the details, you do the “analysis.”

After analyzing, you put all those details together to create something new, which we call “synthesis.” Finally, you take action based on all your thinking, and that’s the “creation” or “action” step.

Examples of Critical Thinking in the Workplace

Even if the tasks are repetitive, or even if employees are required to follow strict rules, critical thinking is still important. It helps to deal with unexpected challenges and improve processes.

Let’s delve into 13 real examples to see how critical thinking works in practice.

1. Evaluating the pros and cons of each option

Are you unsure which choice is the best? Critical thinking helps you look at the good and bad sides of each option. This ensures that you make decisions based on facts and not just guesses.

Product development : For example, a product development team is deciding whether to launch a new product . They must evaluate the pros and cons of various features, production methods, and marketing strategies to make an informed decision. Obviously, the more complete their evaluation is, the better decisions they can make.

2. Breaking down complex problems into smaller, manageable parts

In the face of complex problems, critical thinkers are able to make the problem easier to solve. How? They create a step-by-step process to address each component separately.

Product deliveries and customer support . Imagine you work in a customer service department, and there has been a sudden increase in customer complaints about delayed deliveries. You need to figure out the root causes and come up with a solution.

So, you break down the problem into pieces – the shipping process, warehouse operations, delivery routes, customer communication, and product availability. This helps you find out the major causes, which are:

  • insufficient staff in the packaging department, and
  • high volume of orders during specific weeks in a year.

So, when you focus on smaller parts, you can understand and address each aspect better. As a result, you can find practical solutions to the larger issue of delayed deliveries.

3. Finding, evaluating and using information effectively

In today’s world, information is power. Using it wisely can help you and your team succeed. And critical thinkers know where to find the right information and how to check if it’s reliable.

Market research : Let’s say a marketing team is conducting market research to launch a new product. They must find, assess, and use market data to understand customer needs, competitor tactics, and market trends. Only with this information at hand can they create an effective marketing plan.

4. Paying attention to details while also seeing the bigger picture

Are you great at noticing small things? But can you also see how they fit into the larger picture? Critical thinking helps you do both. It’s like zooming in and out with a camera. Why is it essential? It helps you see the full story and avoid tunnel vision.

Strategic planning . For instance, during strategic planning, executives must pay attention to the details of the company’s financial data, market changes, and internal potential. At the same time, they must consider the bigger picture of long-term goals and growth strategies.

5. Making informed decisions by considering all available information

Ever made a choice without thinking it through? Critical thinkers gather all the facts before they decide. It ensures your decisions are smart and well-informed.

Data analysis . For example, data analysts have to examine large datasets to discover trends and patterns. They use critical thinking to understand the significance of these findings, get useful insights, and provide recommendations for improvement.

6. Recognizing biases and assumptions

Too many workplaces suffer from unfair and biased decisions. Make sure yours isn’t on this list. Critical thinkers are self-aware and can spot their own biases. Obviously, this allows them to make more objective decisions.

Conflict resolution . Suppose a manager needs to mediate a conflict between two team members. Critical thinking is essential to understand the underlying causes, evaluate the validity of each person’s opinion, and find a fair solution.

Hiring decisions . Here’s another example. When hiring new employees, HR professionals need to critically assess candidates’ qualifications, experience, and cultural fit. At the same time, they have to “silence” their own assumptions to make unbiased hiring decisions.

7. Optimizing processes for efficiency

Critical thinking examples in the workplace clearly show how teams can improve their processes.

Customer service . Imagine a company that sells gadgets. When customers have problems, the customer service team reads their feedback. For example, if many people struggle to use a gadget, they think about why that’s happening. Maybe the instructions aren’t clear, or the gadget is too tricky to set up.

So, they work together to make things better. They make a new, easier guide and improve the gadget’s instructions. As a result, fewer customers complain, and everyone is happier with the products and service.

8. Analyzing gaps and filling them in

Discovering problems in your company isn’t always obvious. Sometimes, you need to find what’s not working well to help your team do better. That’s where critical thinking comes in.

Training and development . HR professionals, for instance, critically analyze skill gaps within the organization to design training programs. Without deep analysis, they can’t address specific needs and upskill their employees .

9. Contributing effectively to team discussions

In a workplace, everyone needs to join meetings by saying what they think and listening to everyone else. Effective participation, in fact, depends on critical thinking because it’s the best shortcut to reach collective decisions.

Team meetings . In a brainstorming session, you and your colleagues are like puzzle pieces, each with a unique idea. To succeed, you listen to each other’s thoughts, mix and match those ideas, and together, you create the perfect picture – the best plan for your project.

10. Contributing effectively to problem-solving

Effective problem-solving typically involves critical thinking, with team members offering valuable insights and solutions based on their analysis of the situation.

Innovative SaaS product development . Let’s say a cross-functional team faces a challenging innovation problem. So, they use critical thinking to brainstorm creative solutions and evaluate the feasibility of each idea. Afterwards, they select the most promising one for further development.

11. Making accurate forecasts

Understanding critical thinking examples is essential in another aspect, too. In fact, critical thinking allows companies to prepare for what’s coming, reducing unexpected problems.

Financial forecasting . For example, finance professionals critically assess financial data, economic indicators, and market trends to make accurate forecasts. This data helps to make financial decisions, such as budget planning or investment strategies.

12. Assessing potential risks and recommending adjustments

Without effective risk management , you’ll constantly face issues when it’s too late to tackle them. But when your team has smart thinkers who can spot problems and figure out how they might affect you, you’ll have no need to worry.

Compliance review . Compliance officers review company policies and practices to ensure they align with relevant laws and regulations. They want to make sure everything we do follows the law. If they find anything that could get us into trouble, they’ll suggest changes to keep us on the right side of the law.

13. Managing the crisis

Who else wants to minimize damage and protect their business? During a crisis, leaders need to think critically to assess the situation, make rapid decisions, and allocate resources effectively.

Security breach in a big IT company . Suppose you’ve just discovered a major security breach. This is a crisis because sensitive customer data might be at risk, and it could damage your company’s reputation.

To manage this crisis, you need to think critically. First, you must assess the situation. You investigate how the breach happened, what data might be compromised, and how it could affect your customers and your business. Next, you have to make decisions. You might decide to shut down the affected systems to prevent further damage. By taking quick, well-planned actions, you can minimize the damage and protect your business.

Critical Thinking in Your Team

Encouraging Critical Thinking in Your Team: A Brief Manager’s Guide

According to Payscale’s survey, 60% of managers believe that critical thinking is the top soft skill that new graduates lack. Why should you care? Well, among these graduates, there’s a good chance that one could eventually become a part of your team down the road.

So, how do you create a workplace where critical thinking is encouraged and cultivated? Let’s find out.

Step 1: Make Your Expectations Clear

First things first, make sure your employees know why critical thinking is important. If they don’t know how critical it is, it’s time to tell them. Explain why it’s essential for their growth and the company’s success.

Step 2: Encourage Curiosity

Do your employees ask questions freely? Encourage them to! A workplace where questions are welcomed is a breeding ground for critical thinking. And remember, don’t shut down questions with a “That’s not important.” Every question counts.

Step 3: Keep Learning Alive

Encourage your team to keep growing. Learning new stuff helps them become better thinkers. So, don’t let them settle for “I already know enough.” Provide your team with inspiring examples of critical thinking in the workplace. Let them get inspired and reach new heights.

Step 4: Challenge, Don’t Spoon-Feed

Rethink your management methods, if you hand your employees everything on a silver platter. Instead, challenge them with tasks that make them think. It might be tough, but don’t worry. A little struggle can be a good thing.

Step 5: Embrace Different Ideas

Do you only like ideas that match your own? Well, that’s a no-no. Encourage different ideas, even if they sound strange. Sometimes, the craziest ideas lead to the best solutions.

Step 6: Learn from Mistakes

Mistakes happen. So, instead of pointing fingers, ask your employees what they learned from the mistake. Don’t let them just say, “It’s not my fault.”

Step 7: Lead the Way

Are you a critical thinker yourself? Show your employees how it’s done. Lead by example. Don’t just say, “Do as I say!”

Wrapping It Up!

As we’ve seen, examples of critical thinking in the workplace are numerous. Critical thinking shows itself in various scenarios, from evaluating pros and cons to breaking down complex problems and recognizing biases.

The good news is that critical thinking isn’t something you’re born with but a skill you can nurture and strengthen. It’s a journey of growth, and managers are key players in this adventure. They can create a space where critical thinking thrives by encouraging continuous learning.

Remember, teams that cultivate critical thinking will be pioneers of adaptation and innovation. They’ll be well-prepared to meet the challenges of tomorrow’s workplace with confidence and competence.

#ezw_tco-2 .ez-toc-title{ font-size: 120%; ; ; } #ezw_tco-2 .ez-toc-widget-container ul.ez-toc-list li.active{ background-color: #ededed; } Table of Contents

Manage your remote team with teamly. get your 100% free account today..

what does critical thinking mean in business

PC and Mac compatible

image

Teamly is everywhere you need it to be. Desktop download or web browser or IOS/Android app. Take your pick.

Get Teamly for FREE by clicking below.

No credit card required. completely free.

image

Teamly puts everything in one place, so you can start and finish projects quickly and efficiently.

Keep reading.

Remote Performance Reviews

Employee Management

How to Eliminate Awkwardness in Remote Performance Reviews

How to Eliminate Awkwardness in Remote Performance ReviewsYou’ve undoubtedly been through it before, the agony of anticipating a performance evaluation. The buildup alone is enough to drive anyone insane. Then there’s the actual review itself. You sit down with your employer, preparing your mind for all potential criticisms. You try to keep an open mind, …

Continue reading “How to Eliminate Awkwardness in Remote Performance Reviews”

SEO Project Management

Project Management

Seven Quick Steps to Effective SEO Project Management

Seven Quick Steps to Effective SEO Project ManagementThe competition for winning Google’s heart is fierce. More and more companies are investing in search engine optimization (SEO). And there is a good reason why. In fact, research shows that in 93 percent of cases, people start their online experiences with a search engine. Obviously, if companies …

Continue reading “Seven Quick Steps to Effective SEO Project Management”

Max 12 min read

Improve scrum team productivity

Productivity

The Secrets of High Performing Scrum Teams

The Secrets of High Performing Scrum TeamsBees are busy, hard working creatures. They’ll travel up to four miles from their hive, and pollinate as many as 5,000 flowers each day! And the fruit of their labor is sweet indeed. But their team structure, let’s face it, is kinda weak. The entire hive is dependent on …

Continue reading “The Secrets of High Performing Scrum Teams”

Max 11 min read

Project Management Software Comparisons

Asana

Asana vs Wrike

Basecamp

Basecamp vs Slack

Smartsheet

Smartsheet vs Airtable

Trello

Trello vs ClickUp

Monday.com

Monday.com vs Jira Work Management

Trello vs asana.

Get Teamly for FREE Enter your email and create your account today!

You must enter a valid email address

You must enter a valid email address!

what does critical thinking mean in business

The Importance of Critical Thinking In Business

Do you want to be an entrepreneur or improve your business skills? Then, it’s essential to develop critical thinking skills. When you become a business owner, you must make difficult decisions and analyze complex data.

Therefore, you need to have critical thinking skills to understand the challenges and opportunities of the situation. This blog post will help you understand the importance of critical thinking in business and entrepreneurship.

Thinking Fast and Slow by Daniel Kahneman

Thinking Fast and Slow

by Daniel Kahneman

⏱ 12 minutes reading time

🎧 Audio version available

Buy on Amazon

Critical thinking helps you see the bigger picture

As an entrepreneur or business owner, seeing the big picture is crucial. Critical thinking allows you to see beyond the immediate problem and identify the root cause of the issue. For instance, if you have a problem with customer retention, critical thinking can help you determine why it’s happening. You can analyze the data to discover the reasons why customers are leaving. Critical thinking allows you to see the bigger picture and not just the symptoms of the problem.

Critical thinking helps you make informed decisions

In business, you face many complex decisions that you must make quickly. However, making uninformed decisions can be a recipe for failure. Critical thinking helps you gather, analyze, and interpret complex data to make a well-informed decision. For example, you must evaluate the potential ROI, risks, and competition to enter a new market. With critical thinking, you can weigh the pros and cons of entering a new market and make an informed decision.

Critical thinking helps you solve problems creatively

Businesses face many challenges that require creative solutions. With critical thinking, you can generate multiple solutions to a problem and choose the best one. For example, if you want to improve your product, you can brainstorm different ideas to make it better. Critical thinking allows you to be creative and find innovative solutions that can set you apart from your competition.

Critical thinking helps you communicate effectively

Effective communication is critical for entrepreneurs and business owners. With critical thinking, you can communicate your ideas and solutions effectively. Critical thinking allows you to organize your thoughts and express them logically, making it easier to communicate with others. Good communication can help you sell ideas, build strong relationships , and attract investors.

Critical thinking helps you become a better leader

Leadership is essential in business, and critical thinking can help you become a better leader. Critical thinking allows you to analyze situations, make informed decisions, and communicate effectively. These skills can help you lead your team and business to success. In addition, critical thinking allows you to see the bigger picture, understand complex data, and make data-driven decisions.

Related: Why Do We Make Irrational Decisions In Business And What We Can Do to Stop

Critical thinking is essential for business and entrepreneurship. It helps you see the bigger picture, make informed decisions, solve problems creatively, communicate effectively, and become a better leader. As a business owner or entrepreneur, these skills are critical for success. So, to improve your business skills, start developing your critical thinking skills today.

What Is Snapreads?

what does critical thinking mean in business

With the Snapreads app, you get the key insights from the best nonfiction books in minutes, not hours or days. Our experts transform these books into quick, memorable, easy-to-understand insights you can read when you have the time or listen to them on the go.

  • Notice : Undefined variable: title in /home/pednwwmy/public_html/snapreads/magazine/wp-content/themes/wpex-fashionista/inc/social-share.php on line 64 &summary= Notice : Undefined variable: summary in /home/pednwwmy/public_html/snapreads/magazine/wp-content/themes/wpex-fashionista/inc/social-share.php on line 64 &source=https://snapreads.com/magazine/" title="Share on LinkedIn" onclick="javascript:window.open(this.href, '', 'menubar=no,toolbar=no,resizable=yes,scrollbars=yes,height=600,width=600');return false;"> Share

Top Categories

  • Work & Success
  • Money & Investing
  • Psychology & Relationships
  • Mind & Body
  • Books lists

Related Articles

The growth roadmap: 10 pitfalls to sidestep on your journey to success.

Embarking on the journey to success is undeniably exhilarating, but it’s far from a walk…

10 Effective Strategies to Kiss Fatigue Goodbye and Feel Energized Again

10 Effective Strategies to Kiss Fatigue Goodbye and Feel Energized Again

Feeling exhausted all the time can put a serious damper on your productivity and overall…

Master Your Productivity: 10 Actionable Tips to Manage Your Time Like a Pro

Master Your Productivity: 10 Actionable Tips to Manage Your Time Like a Pro

Are you tired of constantly feeling overwhelmed and stressed out by your never-ending to-do list?…

Cart

  • SUGGESTED TOPICS
  • The Magazine
  • Newsletters
  • Managing Yourself
  • Managing Teams
  • Work-life Balance
  • The Big Idea
  • Data & Visuals
  • Reading Lists
  • Case Selections
  • HBR Learning
  • Topic Feeds
  • Account Settings
  • Email Preferences

How to Demonstrate Your Strategic Thinking Skills

  • Nina A. Bowman

what does critical thinking mean in business

Don’t be shy about bringing your ideas to the table.

Developing your strategic thinking skills isn’t enough to get you promoted. In order to advance in your career, you need to demonstrate them. Leaders want to know what you think, and they view your worthiness for promotion through the lens of how ready you are to make bigger decisions. Ask yourself: “Do people know where I stand?” If not, what do you need to do to bring your perspective to the table? It’s also important to demonstrate that you can put new ideas into action. Take the initiative on new projects that show how your understanding extends beyond your current function.

We all know that developing strategic thinking skills is important , but many don’t realize how critical it is to your career advancement to show these skills to your boss and other senior leaders. Showing strategic thinking skills tells your bosses that you’re able to think for yourself and make decisions that position the organization for the future. It assures them that you aren’t making decisions in a vacuum but are considering how other departments might be affected or how the outside world will respond.

what does critical thinking mean in business

  • NB Nina A. Bowman is a Managing Partner at Paravis Partners, an executive coaching and leadership development firm. Previously, she held various advisory and leadership roles in strategy. She is an executive coach and speaker on issues of strategic leadership, leadership presence, and interpersonal effectiveness. She is also a contributing author to the HBR Guide to Coaching Employees and HBR Guide to Thinking Strategically .

Partner Center

GCFGlobal Logo

  • Get started with computers
  • Learn Microsoft Office
  • Apply for a job
  • Improve my work skills
  • Design nice-looking docs
  • Getting Started
  • Smartphones & Tablets
  • Typing Tutorial
  • Online Learning
  • Basic Internet Skills
  • Online Safety
  • Social Media
  • Zoom Basics
  • Google Docs
  • Google Sheets
  • Career Planning
  • Resume Writing
  • Cover Letters
  • Job Search and Networking
  • Business Communication
  • Entrepreneurship 101
  • Careers without College
  • Job Hunt for Today
  • 3D Printing
  • Freelancing 101
  • Personal Finance
  • Sharing Economy
  • Decision-Making
  • Graphic Design
  • Photography
  • Image Editing
  • Learning WordPress
  • Language Learning
  • Critical Thinking
  • For Educators
  • Translations
  • Staff Picks
  • English expand_more expand_less

Critical Thinking and Decision-Making  - What is Critical Thinking?

Critical thinking and decision-making  -, what is critical thinking, critical thinking and decision-making what is critical thinking.

GCFLearnFree Logo

Critical Thinking and Decision-Making: What is Critical Thinking?

Lesson 1: what is critical thinking, what is critical thinking.

Critical thinking is a term that gets thrown around a lot. You've probably heard it used often throughout the years whether it was in school, at work, or in everyday conversation. But when you stop to think about it, what exactly is critical thinking and how do you do it ?

Watch the video below to learn more about critical thinking.

Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions . It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better.

illustration of the terms logic, reasoning, and creativity

This may sound like a pretty broad definition, and that's because critical thinking is a broad skill that can be applied to so many different situations. You can use it to prepare for a job interview, manage your time better, make decisions about purchasing things, and so much more.

The process

illustration of "thoughts" inside a human brain, with several being connected and "analyzed"

As humans, we are constantly thinking . It's something we can't turn off. But not all of it is critical thinking. No one thinks critically 100% of the time... that would be pretty exhausting! Instead, it's an intentional process , something that we consciously use when we're presented with difficult problems or important decisions.

Improving your critical thinking

illustration of the questions "What do I currently know?" and "How do I know this?"

In order to become a better critical thinker, it's important to ask questions when you're presented with a problem or decision, before jumping to any conclusions. You can start with simple ones like What do I currently know? and How do I know this? These can help to give you a better idea of what you're working with and, in some cases, simplify more complex issues.  

Real-world applications

illustration of a hand holding a smartphone displaying an article that reads, "Study: Cats are better than dogs"

Let's take a look at how we can use critical thinking to evaluate online information . Say a friend of yours posts a news article on social media and you're drawn to its headline. If you were to use your everyday automatic thinking, you might accept it as fact and move on. But if you were thinking critically, you would first analyze the available information and ask some questions :

  • What's the source of this article?
  • Is the headline potentially misleading?
  • What are my friend's general beliefs?
  • Do their beliefs inform why they might have shared this?

illustration of "Super Cat Blog" and "According to survery of cat owners" being highlighted from an article on a smartphone

After analyzing all of this information, you can draw a conclusion about whether or not you think the article is trustworthy.

Critical thinking has a wide range of real-world applications . It can help you to make better decisions, become more hireable, and generally better understand the world around you.

illustration of a lightbulb, a briefcase, and the world

/en/problem-solving-and-decision-making/why-is-it-so-hard-to-make-decisions/content/

JavaScript seems to be disabled in your browser. For the best experience on our site, be sure to turn on Javascript in your browser.

  • Order Tracking
  • Create an Account

what does critical thinking mean in business

200+ Award-Winning Educational Textbooks, Activity Books, & Printable eBooks!

  • Compare Products

Reading, Writing, Math, Science, Social Studies

  • Search by Book Series
  • Algebra I & II  Gr. 7-12+
  • Algebra Magic Tricks  Gr. 2-12+
  • Algebra Word Problems  Gr. 7-12+
  • Balance Benders  Gr. 2-12+
  • Balance Math & More!  Gr. 2-12+
  • Basics of Critical Thinking  Gr. 4-7
  • Brain Stretchers  Gr. 5-12+
  • Building Thinking Skills  Gr. Toddler-12+
  • Building Writing Skills  Gr. 3-7
  • Bundles - Critical Thinking  Gr. PreK-9
  • Bundles - Language Arts  Gr. K-8
  • Bundles - Mathematics  Gr. PreK-9
  • Bundles - Multi-Subject Curriculum  Gr. PreK-12+
  • Bundles - Test Prep  Gr. Toddler-12+
  • Can You Find Me?  Gr. PreK-1
  • Complete the Picture Math  Gr. 1-3
  • Cornell Critical Thinking Tests  Gr. 5-12+
  • Cranium Crackers  Gr. 3-12+
  • Creative Problem Solving  Gr. PreK-2
  • Critical Thinking Activities to Improve Writing  Gr. 4-12+
  • Critical Thinking Coloring  Gr. PreK-2
  • Critical Thinking Detective  Gr. 3-12+
  • Critical Thinking Tests  Gr. PreK-6
  • Critical Thinking for Reading Comprehension  Gr. 1-5
  • Critical Thinking in United States History  Gr. 6-12+
  • CrossNumber Math Puzzles  Gr. 4-10
  • Crypt-O-Words  Gr. 2-7
  • Crypto Mind Benders  Gr. 3-12+
  • Daily Mind Builders  Gr. 5-12+
  • Dare to Compare Math  Gr. 2-7
  • Developing Critical Thinking through Science  Gr. 1-8
  • Dr. DooRiddles  Gr. PreK-12+
  • Dr. Funster's  Gr. 2-12+
  • Editor in Chief  Gr. 2-12+
  • Fun-Time Phonics!  Gr. PreK-2
  • Half 'n Half Animals  Gr. K-4
  • Hands-On Thinking Skills  Gr. K-1
  • Inference Jones  Gr. 1-6
  • James Madison  Gr. 10-12+
  • Jumbles  Gr. 3-5
  • Language Mechanic  Gr. 4-7
  • Language Smarts  Gr. 1-4
  • Mastering Logic & Math Problem Solving  Gr. 6-9
  • Math Analogies  Gr. K-9
  • Math Detective  Gr. 3-8
  • Math Games  Gr. 3-8
  • Math Mind Benders  Gr. 5-12+
  • Math Ties  Gr. 4-8
  • Math Word Problems  Gr. 4-10
  • Mathematical Reasoning  Gr. Toddler-11
  • Middle School Science  Gr. 6-8
  • Mind Benders  Gr. PreK-12+
  • Mind Building Math  Gr. K-1
  • Mind Building Reading  Gr. K-1
  • Novel Thinking  Gr. 3-6
  • OLSAT® Test Prep  Gr. PreK-K
  • Organizing Thinking  Gr. 2-8
  • Pattern Explorer  Gr. 3-9
  • Practical Critical Thinking  Gr. 8-12+
  • Punctuation Puzzler  Gr. 3-8
  • Reading Detective  Gr. 3-12+
  • Red Herring Mysteries  Gr. 4-12+
  • Red Herrings Science Mysteries  Gr. 4-9
  • Science Detective  Gr. 3-6
  • Science Mind Benders  Gr. PreK-3
  • Science Vocabulary Crossword Puzzles  Gr. 4-6
  • Sciencewise  Gr. 4-12+
  • Scratch Your Brain  Gr. 2-12+
  • Sentence Diagramming  Gr. 3-12+
  • Smarty Pants Puzzles  Gr. 3-12+
  • Snailopolis  Gr. K-4
  • Something's Fishy at Lake Iwannafisha  Gr. 5-9
  • Teaching Technology  Gr. 3-12+
  • Tell Me a Story  Gr. PreK-1
  • Think Analogies  Gr. 3-12+
  • Think and Write  Gr. 3-8
  • Think-A-Grams  Gr. 4-12+
  • Thinking About Time  Gr. 3-6
  • Thinking Connections  Gr. 4-12+
  • Thinking Directionally  Gr. 2-6
  • Thinking Skills & Key Concepts  Gr. PreK-2
  • Thinking Skills for Tests  Gr. PreK-5
  • U.S. History Detective  Gr. 8-12+
  • Understanding Fractions  Gr. 2-6
  • Visual Perceptual Skill Building  Gr. PreK-3
  • Vocabulary Riddles  Gr. 4-8
  • Vocabulary Smarts  Gr. 2-5
  • Vocabulary Virtuoso  Gr. 2-12+
  • What Would You Do?  Gr. 2-12+
  • Who Is This Kid? Colleges Want to Know!  Gr. 9-12+
  • Word Explorer  Gr. 6-8
  • Word Roots  Gr. 3-12+
  • World History Detective  Gr. 6-12+
  • Writing Detective  Gr. 3-6
  • You Decide!  Gr. 6-12+

what does critical thinking mean in business

  • Special of the Month
  • Sign Up for our Best Offers
  • Bundles = Greatest Savings!
  • Sign Up for Free Puzzles
  • Sign Up for Free Activities
  • Toddler (Ages 0-3)
  • PreK (Ages 3-5)
  • Kindergarten (Ages 5-6)
  • 1st Grade (Ages 6-7)
  • 2nd Grade (Ages 7-8)
  • 3rd Grade (Ages 8-9)
  • 4th Grade (Ages 9-10)
  • 5th Grade (Ages 10-11)
  • 6th Grade (Ages 11-12)
  • 7th Grade (Ages 12-13)
  • 8th Grade (Ages 13-14)
  • 9th Grade (Ages 14-15)
  • 10th Grade (Ages 15-16)
  • 11th Grade (Ages 16-17)
  • 12th Grade (Ages 17-18)
  • 12th+ Grade (Ages 18+)
  • Test Prep Directory
  • Test Prep Bundles
  • Test Prep Guides
  • Preschool Academics
  • Store Locator
  • Submit Feedback/Request
  • Sales Alerts Sign-Up
  • Technical Support
  • Mission & History
  • Articles & Advice
  • Testimonials
  • Our Guarantee
  • New Products
  • Free Activities
  • Libros en Español

What is Critical Thinking?

Critical Thinking Definition

September 2, 2005, by The Critical Thinking Co. Staff

The Critical Thinking Co.™ "Critical thinking is the identification and evaluation of evidence to guide decision making. A critical thinker uses broad in-depth analysis of evidence to make decisions and communicate their beliefs clearly and accurately."

Other Definitions of Critical Thinking: Robert H. Ennis , Author of The Cornell Critical Thinking Tests "Critical thinking is reasonable, reflective thinking that is focused on deciding what to believe and do."

A SUPER-STREAMLINED CONCEPTION OF CRITICAL THINKING Robert H. Ennis, 6/20/02

Assuming that critical thinking is reasonable reflective thinking focused on deciding what to believe or do, a critical thinker:

1. Is open-minded and mindful of alternatives 2. Tries to be well-informed 3. Judges well the credibility of sources 4. Identifies conclusions, reasons, and assumptions 5. Judges well the quality of an argument, including the acceptability of its reasons, assumptions, and evidence 6. Can well develop and defend a reasonable position 7. Asks appropriate clarifying questions 8. Formulates plausible hypotheses; plans experiments well 9. Defines terms in a way appropriate for the context 10. Draws conclusions when warranted, but with caution 11. Integrates all items in this list when deciding what to believe or do

Critical Thinkers are disposed to:

1. Care that their beliefs be true, and that their decisions be justified; that is, care to "get it right" to the extent possible. This includes the dispositions to

a. Seek alternative hypotheses, explanations, conclusions, plans, sources, etc., and be open to them b. Endorse a position to the extent that, but only to the extent that, it is justified by the information that is available c. Be well informed d. Consider seriously other points of view than their own

2. Care to present a position honestly and clearly, theirs as well as others'. This includes the dispositions to

a. Be clear about the intended meaning of what is said, written, or otherwise communicated, seeking as much precision as the situation requires b. Determine, and maintain focus on, the conclusion or question c. Seek and offer reasons d. Take into account the total situation e. Be reflectively aware of their own basic beliefs

3. Care about the dignity and worth of every person (a correlative disposition). This includes the dispositions to

a. Discover and listen to others' view and reasons b. Avoid intimidating or confusing others with their critical thinking prowess, taking into account others' feelings and level of understanding c. Be concerned about others' welfare

Critical Thinking Abilities:

Ideal critical thinkers have the ability to (The first three items involve elementary clarification.)

1. Focus on a question

a. Identify or formulate a question b. Identify or formulate criteria for judging possible answers c. Keep the situation in mind

2. Analyze arguments

a. Identify conclusions b. Identify stated reasons c. Identify unstated reasons d. Identify and handle irrelevance e. See the structure of an argument f. Summarize

3. Ask and answer questions of clarification and/or challenge, such as,

a. Why? b. What is your main point? c. What do you mean by…? d. What would be an example? e. What would not be an example (though close to being one)? f. How does that apply to this case (describe a case, which might well appear to be a counter example)? g. What difference does it make? h. What are the facts? i. Is this what you are saying: ____________? j. Would you say some more about that?

(The next two involve the basis for the decision.)

4. Judge the credibility of a source. Major criteria (but not necessary conditions):

a. Expertise b. Lack of conflict of interest c. Agreement among sources d. Reputation e. Use of established procedures f. Known risk to reputation g. Ability to give reasons h. Careful habits

5. Observe, and judge observation reports. Major criteria (but not necessary conditions, except for the first):

a. Minimal inferring involved b. Short time interval between observation and report c. Report by the observer, rather than someone else (that is, the report is not hearsay) d. Provision of records. e. Corroboration f. Possibility of corroboration g. Good access h. Competent employment of technology, if technology is useful i. Satisfaction by observer (and reporter, if a different person) of the credibility criteria in Ability # 4 above.

(The next three involve inference.)

6. Deduce, and judge deduction

a. Class logic b. Conditional logic c. Interpretation of logical terminology in statements, including (1) Negation and double negation (2) Necessary and sufficient condition language (3) Such words as "only", "if and only if", "or", "some", "unless", "not both".

7. Induce, and judge induction

a. To generalizations. Broad considerations: (1) Typicality of data, including sampling where appropriate (2) Breadth of coverage (3) Acceptability of evidence b. To explanatory conclusions (including hypotheses) (1) Major types of explanatory conclusions and hypotheses: (a) Causal claims (b) Claims about the beliefs and attitudes of people (c) Interpretation of authors’ intended meanings (d) Historical claims that certain things happened (including criminal accusations) (e) Reported definitions (f) Claims that some proposition is an unstated reason that the person actually used (2) Characteristic investigative activities (a) Designing experiments, including planning to control variables (b) Seeking evidence and counter-evidence (c) Seeking other possible explanations (3) Criteria, the first five being essential, the sixth being desirable (a) The proposed conclusion would explain the evidence (b) The proposed conclusion is consistent with all known facts (c) Competitive alternative explanations are inconsistent with facts (d) The evidence on which the hypothesis depends is acceptable. (e) A legitimate effort should have been made to uncover counter-evidence (f) The proposed conclusion seems plausible

8. Make and judge value judgments: Important factors:

a. Background facts b. Consequences of accepting or rejecting the judgment c. Prima facie application of acceptable principles d. Alternatives e. Balancing, weighing, deciding

(The next two abilities involve advanced clarification.)

9. Define terms and judge definitions. Three dimensions are form, strategy, and content.

a. Form. Some useful forms are: (1) Synonym (2) Classification (3) Range (4) Equivalent expression (5) Operational (6) Example and non-example b. Definitional strategy (1) Acts (a) Report a meaning (b) Stipulate a meaning (c) Express a position on an issue (including "programmatic" and "persuasive" definitions) (2) Identifying and handling equivocation c. Content of the definition

10. Attribute unstated assumptions (an ability that belongs under both clarification and, in a way, inference)

(The next two abilities involve supposition and integration.)

11. Consider and reason from premises, reasons, assumptions, positions, and other propositions with which they disagree or about which they are in doubt -- without letting the disagreement or doubt interfere with their thinking ("suppositional thinking")

12. Integrate the other abilities and dispositions in making and defending a decision

(The first twelve abilities are constitutive abilities. The next three are auxiliary critical thinking abilities: Having them, though very helpful in various ways, is not constitutive of being a critical thinker.)

13. Proceed in an orderly manner appropriate to the situation. For example:

a. Follow problem solving steps b. Monitor one's own thinking (that is, engage in metacognition) c. Employ a reasonable critical thinking checklist

14. Be sensitive to the feelings, level of knowledge, and degree of sophistication of others

15. Employ appropriate rhetorical strategies in discussion and presentation (orally and in writing), including employing and reacting to "fallacy" labels in an appropriate manner.

Examples of fallacy labels are "circularity," "bandwagon," "post hoc," "equivocation," "non sequitur," and "straw person."

Dewey, John Critical thinking is "active, persistent, and careful consideration of any belief or supposed form of knowledge in the light of the grounds that support it and the further conclusions to which it tends (Dewey 1933: 118)."

Glaser (1) an attitude of being disposed to consider in a thoughtful way the problems and subjects that come within the range of one's experiences, (2) knowledge of the methods of logical inquiry and reasoning, and (3) some skill in applying those methods. Critical thinking calls for a persistent effort to examine any belief or supposed form of knowledge in the light of the evidence that supports it and the further conclusions to which it tends. (Glaser 1941, pp. 5-6).

Abilities include: "(a) to recognize problems, (b) to find workable means for meeting those problems, (c) to gather and marshal pertinent information, (d) to recognize unstated assumptions and values, (e) to comprehend and use language with accuracy, clarity and discrimination, (f) to interpret data, (g) to appraise evidence and evaluate statements, (h) to recognize the existence of logical relationships between propositions, (i) to draw warranted conclusions and generalizations, (j) to put to test the generalizations and conclusions at which one arrives, (k) to reconstruct one's patterns of beliefs on the basis of wider experience; and (l) to render accurate judgments about specific things and qualities in everyday life." (p.6)

MCC General Education Initiatives "Critical thinking includes the ability to respond to material by distinguishing between facts and opinions or personal feelings, judgments and inferences, inductive and deductive arguments, and the objective and subjective. It also includes the ability to generate questions, construct, and recognize the structure of arguments, and adequately support arguments; define, analyze, and devise solutions for problems and issues; sort, organize, classify, correlate, and analyze materials and data; integrate information and see relationships; evaluate information, materials, and data by drawing inferences, arriving at reasonable and informed conclusions, applying understanding and knowledge to new and different problems, developing rational and reasonable interpretations, suspending beliefs and remaining open to new information, methods, cultural systems, values and beliefs and by assimilating information."

Nickerson, Perkins and Smith (1985) "The ability to judge the plausibility of specific assertions, to weigh evidence, to assess the logical soundness of inferences, to construct counter-arguments and alternative hypotheses."

Moore and Parker , Critical Thinking Critical Thinking is "the careful, deliberate determination of whether we should accept, reject, or suspend judgment about a claim, and the degree of confidence with which we accept or reject it."

Delphi Report "We understand critical thinking to be purposeful, self-regulatory judgment which results in interpretation, analysis, evaluation, and inference, as well as explanation of the evidential, conceptual, methodological, criteriological, or contextual considerations upon which that judgment is based. CT is essential as a tool of inquiry. As such, CT is a liberating force in education and a powerful resource in one's personal and civic life. While not synonymous with good thinking, CT is a pervasive and self-rectifying human phenomenon. The ideal critical thinker is habitually inquisitive, well-informed, trustful of reason, open-minded, flexible, fair-minded in evaluation, honest in facing personal biases, prudent in making judgments, willing to reconsider, clear about issues, orderly in complex matters, diligent in seeking relevant information, reasonable in the selection of criteria, focused in inquiry, and persistent in seeking results which are as precise as the subject and the circumstances of inquiry permit. Thus, educating good critical thinkers means working toward this ideal. It combines developing CT skills with nurturing those dispositions which consistently yield useful insights and which are the basis of a rational and democratic society."

A little reformatting helps make this definition more comprehensible:

We understand critical thinking to be purposeful, self-regulatory judgment which results in

  • interpretation

as well as explanation of the

  • methodological
  • criteriological

considerations upon which that judgment is based.

Francis Bacon (1605) "For myself, I found that I was fitted for nothing so well as for the study of Truth; as having a mind nimble and versatile enough to catch the resemblances of things … and at the same time steady enough to fix and distinguish their subtler differences; as being gifted by nature with desire to seek, patience to doubt, fondness to meditate, slowness to assert, readiness to consider, carefulness to dispose and set in order; and as being a man that neither affects what is new nor admires what is old, and that hates every kind of imposture."

A shorter version is "the art of being right."

Or, more prosaically: critical thinking is "the skillful application of a repertoire of validated general techniques for deciding the level of confidence you should have in a proposition in the light of the available evidence."

HELPFUL REFERENCE: http://plato.stanford.edu/entries/logic-informal/

You are using an outdated browser. Please upgrade your browser to improve your experience.

Oxford College Logo

Critical Thinking Skills: Why They’re Important for Professionals with Business Management Training

what does critical thinking mean in business

Business managers are key players in ensuring that a company runs smoothly and efficiently. Within a variety of office environments, these professionals are responsible for handling a number of tasks which contribute to optimizing a company’s performance. If you’re seeking a career in business management, being able to think critically will help you to conduct quality assessments of an organization’s situation and determine the best way forward. 

Read on to discover what exactly thinking critically means, and why it’s important in this career path.

If You’re in Business Management Training, Here’s What it Means to Think Critically

Critical thinking is the process of receiving information and evaluating it in many different ways to make an informed decision. This means considering a situation from many angles, and weighing the advantages and disadvantages of possible solutions. In the business world, leaders are forced to think critically every day, as they must make high-stakes decisions that have the potential to impact a company’s performance, its reputation, and the livelihoods of the employees that work there. 

what does critical thinking mean in business

If you’re studying for your business management diploma , thinking critically will enable you to 

Critical Thinking Will Help You to Solve Problems

Problems are bound to arise within any organization. As a business manager, it’s important that you’re able to address a problem by thinking critically. Instead of viewing the problem as an obstacle, try seeing it as a challenge to overcome. As an example, if an employee is underperforming, thinking critically might influence a business manager to consider the fact that this employee has been undergoing personal stress, leading them to give the person a second chance rather than letting them go. If you have business management training , thinking critically will enable you to come up with several alternative solutions to a problem, ensuring that the decision made is one that’s best for the company overall. 

what does critical thinking mean in business

Thinking Critically Enables Business Managers to Communicate Effectively

Within any company, communication entails more than just exchanging information. Effective use of this skill involves understanding the needs of others, anticipating how they might respond to the information they’re given, and determining the best way to establish a channel of communication. As a business manager, you’ll be communicating with your colleagues, business executives, your team, other employees, and clients. 

When you apply critical thinking to both your verbal and written communication, you’ll be able to consider the perspectives of those you are communicating with. Thinking critically will help you to navigate communicating with those of backgrounds different than your own, enabling you to develop a strategy based in mutual understanding. This will lead to a clearer and more effective exchange of information within an organization. Not only does strong communication improve productivity, but it also ensures that employees within the business feel acknowledged and respected.

Thinking of attending business college ?

Build the skills to become a successful business manager with a program at Oxford College.

University of the People Logo

Tips for Online Students , Tips for Students

Why Is Critical Thinking Important? A Survival Guide

what does critical thinking mean in business

Updated: June 19, 2024

Published: April 2, 2020

Why-Is-Critical-Thinking-Important-a-Survival-Guide

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.

Woman deep into thought as she looks out the window, using her critical thinking skills to do some self-reflection.

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.

At UoPeople, our blog writers are thinkers, researchers, and experts dedicated to curating articles relevant to our mission: making higher education accessible to everyone.

Related Articles

How IBM helps Wimbledon use generative AI to drive personalised fan engagement

This collaboration with Wimbledon teams extends beyond the fan-facing digital platform, into enterprise-wide transformation.

Authentication vs. authorization: What’s the difference?

6 min read - Authentication verifies a user’s identity, while authorization gives the user the right level of access to system resources.

Applying generative AI to revolutionize telco network operations 

5 min read - Learn the many potential applications that operators and suppliers are capitalizing on to enhance network operations for telco.

Re-evaluating data management in the generative AI age

4 min read - A good place to start is refreshing the way organizations govern data, particularly as it pertains to its usage in generative AI solutions.

Top 7 risks to your identity security posture

5 min read - Identity misconfigurations and blind spots stand out as critical concerns that undermine an organization’s identity security posture.

June 27, 2024

IBM announces new AI assistant and feature innovations at Think 2024

June 26, 2024

A major upgrade to Db2® Warehouse on IBM Cloud®

June 25, 2024

Increase efficiency in asset lifecycle management with Maximo Application Suite’s new AI-power...

Achieving operational efficiency through Instana’s Intelligent Remediation

June 24, 2024

Manage the routing of your observability log and event data 

Best practices for augmenting human intelligence with AI

2 min read - Enabling participation in the AI-driven economy to be underpinned by fairness, transparency, explainability, robustness and privacy. 

Microcontrollers vs. microprocessors: What’s the difference?

6 min read - Microcontroller units (MCUs) and microprocessor units (MPUs) are two kinds of integrated circuits that, while similar in certain ways, are very different in many others.

Mastering budget control in the age of AI: Leveraging on-premises and cloud XaaS for success 

2 min read - As organizations harness the power of AI while controlling costs, leveraging anything as a service (XaaS) models emerges as strategic.

Highlights by topic

Use IBM Watsonx’s AI or build your own machine learning models

Automate IT infrastructure management

Cloud-native software to secure resources and simplify compliance

Run code on real quantum systems using a full-stack SDK

Aggregate and analyze large datasets

Store, query and analyze structured data

Manage infrastructure, environments and deployments

Run workloads on hybrid cloud infrastructure

Responsible AI can revolutionize tax agencies to improve citizen services

Generative AI can revolutionize tax administration and drive toward a more personalized and ethical future.

Intesa Sanpaolo and IBM secure digital transactions with fully homomorphic encryption

6 min read - Explore how European bank Intesa Sanpaolo and IBM partnered to deliver secure digital transactions using fully homomorphic encryption.

What is AI risk management?

8 min read - AI risk management is the process of identifying, mitigating and addressing the potential risks associated with AI technologies.

How IBM and AWS are partnering to deliver the promise of responsible AI

4 min read - This partnership between IBM and Amazon SageMaker is poised to play a pivotal role in shaping responsible AI practices across industries

Speed, scale and trustworthy AI on IBM Z with Machine Learning for IBM z/OS v3.2 

4 min read - Machine Learning for IBM® z/OS® is an AI platform made for IBM z/OS environments, combining data and transaction gravity with AI infusion.

The recipe for RAG: How cloud services enable generative AI outcomes across industries

4 min read - While the AI is the key component of the RAG framework, other “ingredients” such as PaaS solutions are integral to the mix

Rethink IT spend in the age of generative AI

3 min read - It's critical for organizations to consider frameworks like FinOps and TBM for visibility and accountability of all tech expenditure.

IBM Newsletters

IMAGES

  1. How to Develop Critical Thinking Skills in Business That Make You Smarter

    what does critical thinking mean in business

  2. 25 Critical Thinking Examples (2024)

    what does critical thinking mean in business

  3. Why Critical Thinking is Important for Businesses?

    what does critical thinking mean in business

  4. How to Learn, Develop, and Use Critical Thinking

    what does critical thinking mean in business

  5. What is critical thinking?

    what does critical thinking mean in business

  6. How to be a Critical Thinker [8 TIPS]

    what does critical thinking mean in business

VIDEO

  1. What does critical theory actually mean? #philosophy #marxism #socialism #criticaltheory #marcuse

  2. Critical thinking and deferring to experts

  3. How does critical thinking relate to a Neohumanist Perspective? by Instructor Jesús Vila

  4. Critical Thinking and Thought Leadership

  5. Critical Thinking

  6. What is critical thinking

COMMENTS

  1. Why Critical Thinking Matters in Your Business

    Critical thinking encourages creativity. Critical thinkers are open to new ideas and perspectives and accumulate a significant amount of information when facing decisions. Because of this, they ...

  2. Why Your Business Needs Critical Thinking

    Critical thinking is an essential skill that enables individuals to analyze, evaluate, and synthesize information to make informed decisions. In today's fast-paced, complex, and dynamic work ...

  3. Critical Thinking Definition, Skills, and Examples

    Critical thinking refers to the ability to analyze information objectively and make a reasoned judgment. It involves the evaluation of sources, such as data, facts, observable phenomena, and research findings. Good critical thinkers can draw reasonable conclusions from a set of information, and discriminate between useful and less useful ...

  4. Everything You Need to Know About Critical Thinking Skills for Business

    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.

  5. What Are Critical Thinking Skills and Why Are They Important?

    It makes you a well-rounded individual, one who has looked at all of their options and possible solutions before making a choice. According to the University of the People in California, having critical thinking skills is important because they are [ 1 ]: Universal. Crucial for the economy. Essential for improving language and presentation skills.

  6. What is Critical Thinking and Why is it Valuable in the Workplace

    Often, getting creative means pushing boundaries and reshaping convention. This means taking a risk — one that can often be worth the reward. Using a critical thinking approach when getting creative can help you mitigate the risk, and better determine what value your creativity can bring.

  7. What is Critical Thinking?

    Critical thinking is a cognitive process that involves analyzing, evaluating, and synthesizing information to form reasoned judgments or decisions. It goes beyond simply accepting information at face value and instead requires individuals to actively engage with and question the content, considering its reliability, relevance, and implications.

  8. Critical Thinking

    Critical thinking is a crucial skill for executives and professionals across industries. It is the ability to analyze information objectively, evaluate different perspectives, and make reasoned decisions. This article explores the definition, skills, applications, and significance, especially in business settings.

  9. What Is Critical Thinking?

    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.

  10. Critical Thinking: What Is It And How Can You Develop This Skill?

    First of all, let's define what critical thinking is. In general, it is the ability to objectively analyze events, incoming information and arguments; approach an issue from different sides; and ...

  11. Critical Thinking and the Urgency Trap

    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 ...

  12. Critical Thinking Definition, Skills, and Examples to Know…

    Critical thinking is beneficial for building relationships, starting or pivoting your career, or even just doing your everyday job. It's also a highly-sought-after skill in job seekers. "You want someone who has good critical thinking skills because they're not going to be an attention sponge," Muse career coach Yolanda Owens said ...

  13. 13 Examples of Critical Thinking in the Workplace

    7. Optimizing processes for efficiency. Critical thinking examples in the workplace clearly show how teams can improve their processes. Customer service. Imagine a company that sells gadgets. When customers have problems, the customer service team reads their feedback.

  14. What is Critical Thinking and How Can it Boost Your Career?

    This means that while critical thinking is a vital skill, very few actually work on building it up. In a fast-paced and dynamic business environment, critical thinking skills empower individuals to assess complex situations, identify potential risks and opportunities, and develop effective strategies.

  15. The Importance of Critical Thinking In Business

    Critical thinking allows you to organize your thoughts and express them logically, making it easier to communicate with others. Good communication can help you sell ideas, build strong relationships, and attract investors. Critical thinking helps you become a better leader. Leadership is essential in business, and critical thinking can help you ...

  16. Critical Thinking: What It Is and Why It's Important

    Critical thinking is considered a soft skill, which means it's a skill inherent in a person's personality. That said, it is possible to develop this skill. Related: 5 Examples of Critical Thinking Skills Critical thinking in the workplace Here are some of the ways critical thinking is important to the workplace: Some professions require it

  17. How to Demonstrate Your Strategic Thinking Skills

    Summary. Developing your strategic thinking skills isn't enough to get you promoted. In order to advance in your career, you need to demonstrate them. Leaders want to know what you think, and ...

  18. Critical Thinking and Decision-Making

    Definition. Simply put, critical thinking is the act of deliberately analyzing information so that you can make better judgements and decisions. It involves using things like logic, reasoning, and creativity, to draw conclusions and generally understand things better. This may sound like a pretty broad definition, and that's because critical ...

  19. What is Critical Thinking?

    Critical thinking is the identification and evaluation of evidence to guide decision making. A critical thinker uses broad in-depth analysis of evidence to make decisions and communicate his/her beliefs clearly and accurately. Other Definitions of Critical Thinking:Robert H. Ennis, Author of The Cornell Critical Thinking Tests "Critical thinking is reasonable, reflective thinking that is

  20. Why Is Critical Thinking Important?

    Critical Thinking is important for everyone. Critical Thinking is about being aware of the decisions we make. To understand this more, let's take a moment to break down why we make decisions in the first place. Almost every decision we make is done to offset three critical stressors: Physical stress. Emotional stress.

  21. What Is Critical Thinking Skills?

    That requires critical thinking. Critical thinking skills are what help you make fact-based decisions without being swayed by the opinions of others. Your employer (and clients) wants to know that you can start with a hypothesis, gather facts to prove or disprove it, and then develop a problem statement / solution based on available information.

  22. Critical Thinking Skills: Why They're Important for Professionals with

    If You're in Business Management Training, Here's What it Means to Think Critically. Critical thinking is the process of receiving information and evaluating it in many different ways to make an informed decision. This means considering a situation from many angles, and weighing the advantages and disadvantages of possible solutions ...

  23. The Importance Of Critical Thinking, and how to improve it

    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.

  24. IBM Blog

    News and thought leadership from IBM on business topics including AI, cloud, sustainability and digital transformation. Exclusive. ... 5 min read - Identity misconfigurations and blind spots stand out as critical concerns that undermine an organization's identity security posture. More articles Announcements June 27, 2024 ...