how to apply critical thinking in leadership

PSYCH 485 blog

Critical Thinking in leadership: Is it necessary?

October 23, 2020 by Lauren Dunleavy

Critical thinking in leadership;Is it Necessary?

Is critical thinking an important component of leadership? One would think it is a useful tool to have in your thinking toolbox. So, what exactly is critical thinking? It was easy to find many similar definitions but; Critical thinking is defined as “ the objective analysis and evaluation of an issue in order to form a judgement” (Merriam-Webster, 2020). Critical thinking has been around for at least 2500 years. Mr. Socrates himself supposedly established a method of questioning that was able to shut down claims of knowledge back in the BC era that was very similar to critical thinking as we know it today(Paul et al., 1997). So what is critical thinking used for? It should be used for many things, but mainly we use critical thinking when we want to analyze options in making decisions(Paul et al., 1997). 

How and why is critical thinking applied in the workplace? Critical thinking in the workplace comes in many forms. We see critical thinking being used in teams to help effectively resolve problems. We even see critical thinking being used in the workplace to help teams figure out what issues exist, and then we see teams come up with possible answers for those issues. Why is critical thinking applied to research theories? Lets evaluate this question! 

One place where critical thinking has become a necessity is in leadership. Leadership is defined as a process where a person influences a group of people to achieve a set of common goals (Northouse, 2016). Leadership in theory has dated back to over 5000 years ago, where it was found to have been written in ancient Hieroglyphics (Paul et al. 1997). In ancient times, leadership was suggested that those who appeared powerful were to be followed. The need for critical thinking in leadership has always been around. A model was developed in 1925, called the watson-glaser critical thinking model which helps organizations identify factors in people that are important for critical thinking and judgement making, which explains why critical thinking needs to be a part of leadership approaches (Cox, 2011). 

Critical thinking is applied to leadership approaches because it’s important for leaders to have critical thinking skills, be able to understand logical relationships between ideas, recognize the importance and the relationship of an argument, as well as recognize mistakes in reasoning and then be able to make the right decisions (Sanscartier, 2013). 

There are many different leadership approaches to look at in applying critical thinking. Let’s evaluate critical thinking within the transformational approach of leadership. Transformational leadership theory suggests that it is a process that changes people(PSU WC L10 P2).  It is a leadership approach that is able to get leaders to motivate followers to do more than what is expected (PSU WC L10 P2). A leadership approach that enables a leader to generate and build an empire. It is part of the “new leadership paradigm” which focuses more attention on charisma and affect in leadership (Northouse, 2016). There is a lot of evidence that Transformational leadership focus is highly successful (Northouse, 2016). One factor affects another, in that a leader must appeal to the followers by appealing to their principals and higher cause (PSU WC L10 P4). Critical thinking is a larger component of the transformational theory because, in order to go through a process and be able to transform a person would need to make real, sometimes hard decisions. 

What if a person is not a good critical thinker? Can they still be a good leader? Having poor critical thinking skills can lead a person to make bad decisions, errors, repeated mistakes and even make bad assumptions. Weak critical thinking skills can cause a person to be unable to evaluate and prepare for situations (Sanscartier, 2013). So it looks like being a leader may require some critical thinking skills. So, are leaders that lack critical thinking skills doomed forever? WIll they be able to lead in a productive way? Apparently, there are still ways to develop and master critical thinking skills. 

So what does this all mean? Catherine Rezak from the International Institute of Directors and Managers suggests that leaders should take control of their critical thinking processes, evaluate them and then take action on them (Rezak,2020). So critical thinking skills could be learned, it just depends on a person’s discipline and drive to follow through with the learning process as well as adaptations to understanding it. Whether or not a person has critical thinking skills, the implications of the research suggest that critical thinking skills can be learned, or they can be innate and either way, they are useful in leadership. This is significant because although not everyone may have these skills, they still have an opportunity to learn them. 

       So what’s next? Being able to attain critical thinking skills means that possibly anyone could be a leader because the skills are transferable as long as the person is able to take control and use discipline to learn.  All of this information suggests that a less than good leader, who lacks critical thinking skills may make bad decisions, misjudge an issue, and ultimately fail the leader systems in place. One example of this is when I first started working in wraparound as a family support worker. WHen i first started I had no idea what I was doing. The job was really a fly by the seat of your pants kind of job, until you can learn the skill sets. There was a lot of critical thinking involved, when I was untrained. I had to be able to understand a full situation that I had never experienced before and know when and what skillset to use with the family member. When I used the wrong skill set, the team was unable to plan with a family, in turn creating turmoil. Being able to understand, evaluate and come to the correct decision is such an important part of leading a team. The good thing is that if we don’t know what we are doing, there is always an opportunity to learn! 

In conclusion, the evidence presented today suggests that leaders who have, or attain good critical thinking skills will be able to evaluate, judge, better understand and resolve issues more efficiently. We need more critical thinkers in this world! Using critical thinking within leadership approaches is an important component and probably should not be overlooked. A leader should have good critical thinking skills. 

Paul, R., Elder,L., Bartell, T. (March 1997). Critical Thinking: Research, findings and policy recommendations. Retrieved from: https://www.criticalthinking.org/pages/a-brief-history-of-the-idea-of-critical-thinking/408 

Cox, K. (November 25, 2011). The evolution of leadership. A look at where leadership is heading. Retrieved from: https://cvdl.ben.edu/blog/the-evolution-of-leadership-a-look-at-where-leadership-is-heading/

Rezak, C. (April, 2020). Developing your Critical thinking skills. Retrieved from: https://www.marchfifteen.ca/leadership-the-importance-of-critical-thinking/#:~:text=A%20leader%20with%20critical%20thinking,reasoning%2C%20and%20make%20proper%20decisions .

https://www.iidmglobal.com/expert_talk/expert-talk-categories/leadership/leadership_skill/id45293.html#:~:text=Developed%20in%201925%2C%20the%20model,Inference

Northouse, P.G. (2016). Leadership: Theory and Practice. 7th Edition. Los Angeles: Sage Publications.

Pennsylvania State University (2020). Leadership in work. Module 7: Power and influence Retrieved from https://psu.instructure.com/courses/2075467/modules/items/30110461

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

How Leaders Should Think Critically

• John Baldoni

If you want to succeed in 21st Century business you need to become a critical thinker. Roger Martin of the Rotman School of Management figured this out a decade ago and as dean, has been working to transform his school’s business curriculum with greater emphasis on critical thinking skills. As Lane Wallace explained in the […]

If you want to succeed in 21st Century business you need to become a critical thinker. Roger Martin of the Rotman School of Management figured this out a decade ago and as dean, has been working to transform his school’s business curriculum with greater emphasis on critical thinking skills. As Lane Wallace explained in the New York Times , what Martin and many others are seeking to do is approach learning and problem solving from a multicultural platform that borrows from academia, business, the arts and even history.

• John Baldoni is an internationally recognized executive coach and leadership educator. His most recent book is MOXIE: The Secret to Bold and Gutsy Leadership .

Partner Center

• Skip to Content

Advertisement: Certified CEO Program

• Business Basics
• Business IT
• Finance And Risk
• Growing Your Business
• Managing People
• Personal Success
• Meet Some Of Our Contributors
• Business Books
• Purchase Audio Seminar Series
• Certified Manager Program
• Certified CEO Program
• Top CEO Issues
• Business Book Summaries
• Audio Seminar Library
• Business Book Extracts
• Learning Modules
• Video Seminars
• How IIDM CPD Works
• IIDM Knowledge Units
• Certification - CEOs, Senior Executives & Managers
• Approved Certification Courses
• Certified CPD Reporting

Advertisement: Join IIDM

Advertisement: register for newsletter, advertisement: cpd small top, developing your critical thinking leadership skills.

Critical thinking enables leaders at every level to understand the impact of their decisions on the business as a whole and ensures both alignment with organisational goals and accountability for results.  

The "new normal" is a different kind of competitive landscape, buffeted by geopolitics and global instability, rapid technological change, unique financial pressures, a rising tide of data and information to filter through, and the proliferation of new corporate business models.

The mind-set that made leaders successful in the past probably won't ensure success in the future. In fact, several recent studies and surveys have identified critical thinking as the number one requirement for successful leadership in the 21st century. Yet there is mounting evidence that many current and emerging leaders lack this quality. And it is this competency gap that is shaking up and reshaping leadership as we have come to know it.

Leadership in the "new normal"

In the wake of the economic crisis, we all know what a failure of leadership looks like. The companies that folded in the GFC serve as stark examples of what happens when decisions are based upon erroneous, partially false or incomplete information and when management fails to think clearly and strategically about the full implications of its actions. The resulting fall-out put an end to business as usual and created a "new normal" that looks markedly different from anything anyone has seen before.

Business organisations must be prepared to do things differently if they expect different results. In this demanding, dynamic landscape, it is only natural that they also require a different mind-set from those in charge.

The equation works like this: Thinking drives behaviour; behaviour drives results. So enterprises that want to change the results - and, indeed, change the organisation itself - can achieve the highest leverage by changing the thinking of leaders and managers throughout the organisation.

But what kind of thinking - or rather rethinking - will be required of leaders if they want to succeed in the "new normal"?

Why critical thinking is critical

Critical thinking appears to be exactly what is needed from leaders who are navigating the volatility of the "new normal". Diane Halpern, an award-winning professor of psychology at Claremont McKenna College and a widely read author on the subject, offers this definition in her seminal book, Thought and Knowledge :

"Critical thinking is the use of those cognitive skills or strategies that increase the probability of a desirable outcome. It is used to describe thinking that is purposeful, reasoned, and goal-directed - the kind of thinking involved in solving problems, formulating inferences, calculating likelihoods, and making decisions ... it's the kind of thinking that makes desirable outcomes more likely."

If ever there was a time for clear, discerning, solution-centric thinking, this is it.

Every two years since 1983, Executive Development Associates (EDA) has conducted an extensive survey on trends, growth and the evolution of executive development. The 2009/2010 EDA Trends in Executive Development: A Benchmark Report revealed trouble on the horizon for corporations seeking future business leaders.

To gauge the readiness of the next generation of leadership talent, EDA asked senior executive development professionals to share their views on the strengths and weaknesses of the incoming leadership group - the people who are most likely to fill executive-level positions in the next three to five years - and the subsequent impact on executive development.

The survey identified "hot topics" in executive development for the next two to three years. At the top of the list was leadership, followed by "business acumen, honing skills in strategy execution, leading / managing change, and talent management."

But when asked "What competencies are your leaders lacking?" their responses indicated little confidence that leaders had what it takes to execute in these critical areas successfully. Here's what they said was missing:

• Strategic thinking
• Leading change
• Ability to create a vision and engage others around it
• Ability to inspire
• Understanding the total enterprise and how the parts work together

What critical thinking looks like

Having established the need for a mind-set shift to more critical thinking, we need to be clear on what that means in the workplace.

In general, critical thinking is the ability to deal with the contradictions and problems of a tumultuous environment in a reasoned, purposeful, productive way. Decisions are made using an approach that is fair, objective, accurate and based on information that is relevant to the situation.

Critical thinking is also reflective and focused, constantly evaluating the thinking process itself. It is thinking with a purpose. Critical thinking requires a healthy dose of skepticism and an equal measure of good judgement.

For decades, companies have relied on the Watson-Glaser Critical Thinking Appraisal , a widely used assessment tool for evaluating the cognitive ability of current and future leaders. Developed in 1925, the model identifies factors that are key to critical thinking and decision making and predicts judgment, problem solving, creativity, openness to experience and other leadership behaviours.

Five sub-tests measure critical thinking as a composite of attitudes, knowledge and skills:

• Recognition of assumptions
• Interpretation
• Evaluation of arguments

Professionals with high scores in these sub-tests are able to identify and examine the assumptions, influences and biases that might sway them. They stand back from the fray and strategically assess the strengths and weaknesses of alternative solutions, conclusions or approaches to problems. They make business decisions that answer the right questions, solve the right problems, mitigate risk and improve productivity. They also lead from a position of strength, being able to motivate and move people both inspirationally and intellectually by providing solid reasons for actions.

Whether they lead teams, departments or entire enterprises, leaders who apply the skills of critical thinking to their roles perform at a higher level and offer their organisations a distinct competitive advantage.

Critical thinkers think differently about their impact on the organisation - understanding how their decisions and actions influence business both inside and outside their narrow functional silos. These leaders are able to balance department or team issues with broader company issues and embrace a larger responsibility for the success of the organisation. This keen sense of accountability is what enables them to execute for results now while fulfilling their obligations to positively impact the future.

Leaders who engage in critical thinking also understand the total organisation and how the individual parts work together. Context is key. Now more than ever, business acumen is foundational to effective leadership. It is impossible to apply critical thinking skills to the business of making money without an understanding of the business drivers that connect day-to-day decisions and actions to key financial and strategic performance goals of the organisation. It is one thing to understand one's role as a leader. It is altogether another thing to understand how to set direction and directly affect the outcomes.

Critical thinking is big-picture thinking too. As Hagemann describes it, "Leaders need to be able to comfortably climb to the 30,000-foot view and analyse a dynamic system, while simultaneously and adeptly analysing information to quickly make decisions across levels." Critical thinkers operate from a broad perspective in order to make sure the correct problems are addressed and they are taking acceptable risk. They recognise the difference between short-term gains and sustainable, long-term results and lead accordingly.

The advantages of this kind of leadership behavior are readily apparent. Critical thinking enables leaders at every level to understand the impact of their decisions on the business as a whole and ensures both alignment with organisational goals and accountability for results. It's exactly the type of leadership behaviour demanded by the "new normal" - and exactly what's missing. And this disconnect is likely to intensify over time.

Given the critical-thinking competency gap exposed by the EDA survey and other research, the obvious assumption is that the traditional development process that businesses have relied upon in the past to prepare leaders simply hasn't kept up. So, what's the solution? To accelerate development and raise leadership accountability to a whole new level of awareness and action, there needs to be a new emphasis on critical thinking in leadership development.

Learning to think like a leader

The good news is critical thinking is a skill that can be taught. According to Halpern, "There is a large body of evidence showing that people can learn to think better. Of course, education makes us all more intelligent, but critical thinking is more focused. Everyone can learn to recognise and use the skills of critical thinking, and we can always get better."

New competencies, however, may require a deeper, more analytical approach. The challenge today is not to discard what has been learned in the past, but to build upon traditional competencies with a whole new and more complex set of skills, tools and sensitivities.

Leaders in the new normal need to learn how to be discerning, how to think clearly and wisely, and how to be accountable for their impact on the business.

Discovery learning in leadership courses

Critical thinking can be impacted by the right leadership courses. However, the process can be more challenging than improving a behavioural skill, because you can't easily measure it. Success is demonstrated in results.

As with any skill, intellectual or otherwise, the key to building critical thinking - and achieving successful results - is practice. Research has demonstrated that people learn best when they are actively involved in the learning process and engaging in the behaviours they want to learn. But what's vital in developing critical thinking skills is framing the concept of practice within a relevant, job-related context.

Acquiring critical thinking skills requires participating in learning experiences that force you to consider new ways of thinking about and acting within complex situations that are directly related to the work you do. You need the opportunity to respond to issues, reflect on and reframe your experiences, develop new thinking, and, in turn, engage in new behaviours and actions that are relevant to your position and objectives.

Developing your critical thinking skills

In addition to participating in these types of leadership courses, leaders can take charge of their own critical thinking development by taking these actions:

• Get some feedback about your critical thinking skills from a trusted boss, colleague or coach Are you jumping to conclusions or using a reasoned, analytic process as you work toward a goal? Are you able to put aside biases and assumptions during analysis and decision-making? What kind of "thinker" are you perceived to be and why?
• Challenge yourself to develop a deeper understanding of your company's business, especially its financial and strategic drivers of success Are you clear about what drives the organisation's decisions, how financial success is achieved and how you impact both strategy and the bottom line? Are you making decisions that are aligned with this understanding?Is your knowledge of the business strong enough to drive behaviour and to engage teams and employees?
• Use multiple sources of data to form an "information web" before making a decision or forming a conclusion Are you asking a lot of questions? Identifying stakeholders and their issues and opinions? Separating facts from assumptions?Are you using the Internet as "one" source of information rather than "the" source? Can you analyse information from different perspectives and viewpoints?
• Take time to think Are you rising above the fray when it's important to make a decision, take action or form an opinion? Are you aware of the distractions getting in the way of your thinking time and taking action to minimize these distractions? Are you finding time and space to let your mind focus and reflect on important issues?
• Ask for input, critique and opinions from others as you analyse alternatives Are you checking tentative conclusions with others? Using peers, coaches or mentors to critique your thinking process? Are you willing to open your mind to other ideas or alternatives?

Author Credits

Read similar articles.

Why Tapping Into The Power Of A Growth Mindset Boosts Performance

If you speak to most people, they will tell you that they feel as if are on a permanent rollercoaster they can’t get off. The pace of modern business and the related stress that comes from facing constant change and disruption is turning many into the worst version of themselves - commanding, overwhelmed and distracted. And it’s not letting up anytime soon. And it’s not just a public-sector thing.

Why Having More Thinking Space Is Your Anti-kryptonite As A Leader

We all know that Kryptonite is Superman’s biggest weakness and brings him quickly to his knees starting with a drain on his energy and strength. For directors, leaders and managers; lack of time space and capacity is like kryptonite to your leadership. Creating thinking space is your anti-kryptonite.

Why Leaders Need To Cultivate A Collective Mindset

Far from a passing fad, collaborating is an increasingly critical undertaking in most workplaces. Collaboration gets strategy executed, products to market, client needs met and goals achieved. High quality collaboration leads to better levels of problem solving, innovation and transformation. It also builds a culture of connectedness and sense of belonging to the collective purpose of the organisation. We become ‘in it together’ rather than in ‘it for me’.

• Board Dynamics & Composition
• Coaching & Mentoring
• Decision-Making, Negotiating & Influencing
• Delegating Effectively
• Delivering Great Presentations
• Developing Leadership Skills
• Directors Duties & Responsibilities
• Nurturing Emotional Intelligence & Thought Leadership
• Styles & Qualities Of Leaders

Featured Article 1

A fresh approach to leading today's sales teams.

7 Types Of Self-care That Every Business Leader Should Be Mindful Of

Featured Articles

Six Steps To Less Stress And More Balance

• Terms of Use
• Advertise With Us
• Testimonials

Copyright © 2024 International Institute of Directors and Managers ABN 26 112 140 299. All rights reserved.