relevance of analytical skill on critical thinking for business world

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Analytical thinking: what it is and why it matters more than ever

January 30, 2024

relevance of analytical skill on critical thinking for business world

Welcome back to our high-impact workplace skills series. We really enjoyed the conversations happening in the comments section of last week’s top skills of 2023 issue, so be sure to check those out for perspectives and insights from fellow members of our Career Chat community.

One comment that’s been on our mind came from Kendra Vivian Lewis , who asked some thoughtful questions about the comparative importance of workplace and technical skills and if there’s a way to forecast which skills will be important in the coming years. This week’s topic—analytical thinking, the number one skill on the list—is a great example as we explore both questions. Be sure to read to the end to discover a special offer that we’re running on Coursera Plus subscriptions through September 21.

What it means to think analytically

Analytical thinking involves using data to understand problems, identify potential solutions, and suggest the solution that’s most likely to have the desired impact. It’s similar to critical thinking skills , which are the skills you use to interpret information and make decisions.

In order to succeed as a strong analytical thinker, you also need to have strong technical skills in your field. Remember: technical skills describe the things you do, while workplace skills describe how you do them. So your workplace skills, used effectively, enhance your technical skills. That’s why we consider them to be high-impact—they stand to make your work more impactful than it would have been had you only used your technical skills.

To illustrate, suppose you just started a job as a data analyst for a think tank focused on climate change, and you’ve been tasked with raising community engagement in future climate action efforts.

You might start with your technical data analysis skills as you gather data from a few sources. Then, you’ll use your analytical thinking skills to determine the validity of each data source. Perhaps you’ll discard one source when you learn the research was funded by a firm with a financial stake in fossil fuel consumption. Your technical skills lead again as you clean data, and then you’ll return to your analytical thinking skills to analyze and interpret your findings, ultimately leading to your recommendation to start a transparency campaign to display water and energy use in the community.

Tell us in the comments: How do you use your analytical skills alongside your technical skills in your day-to-day work?

Why analytical skills top the list

To develop the skills list, the World Economic Forum surveyed 800+ global employers on their views of skills and jobs over the next five years, so this list is forward-looking. According to the Future of Jobs Report , employers believe analytical thinking skills will grow in importance by 72 percent in this timeframe.

The reason employers are keen to hire employees with strong analytical thinking skills is informed by trends in automation and technological advancements. While technical data analysis becomes easier with automation, reasoning and decision-making automation is advancing at a much slower pace—meaning employers anticipate that, within the next five years, we’ll have a wealth of data at our fingertips and too few people to interpret what that data means.

Where to begin

For a crash course in critical thinking, try the University of California, Davis’s Critical Thinking Skills for the Professional course. You can finish this beginner-level course in about 7 hours.

For a more comprehensive exploration into analytical thinking , try Duke University’s Introduction to Logic and Critical Thinking Specialization . Over four courses, you’ll learn how to effectively argue and reason using logic.

For a technical process to guide your analytical thinking, try Google’s Data Analytics Professional Certificate . Ground your analytical thinking skills in technical know-how in this eight-course series.

Interested in multiple programs? Don’t miss this special offer!

Through September 21, we’re offering $100 off annual Coursera Plus subscriptions for new subscribers. With this offer, you’ll pay less than $25 per month for one year of access to 6,100 courses, Specializations, and Professional Certificates with flexibility to start new courses and move between programs at your pace.

This offer is a great choice if you are frequently tempted to enroll in multiple courses at once or plan to complete a Specialization or Professional Certificate within the next year. If that sounds like you, take a closer look at the offer and the Coursera Plus course catalog.

That’s all for this week! Join us next week to talk about motivation and self-awareness skills.

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Why Critical Thinking Matters in Your Business

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

Using critical thinking skills in business can guide your organization toward success. To make the most beneficial decisions for your business, it’s crucial to develop and teach critical thinking skills to those involved in the day-to-day of your brand. Here’s how critical thinking skills matter in business — and how to teach them to employees to improve 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 business?

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 business 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 business?

Many businesses 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 that might impact the organization.

Along with reducing costly errors, critical thinking in business 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 business?

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.

Sammi Caramela and Rebecka Green contributed to this article. Source interviews were conducted for a previous version of this article.