critical thinking and judgment the key to effective leadership

The Crucial Role of Critical Thinking in Leadership

Leadership is more than just guiding a team; it's about making decisions that shape the future of an organization. Critical thinking plays a pivotal role in effective leadership. Here are five key reasons why it's essential for a leader to have critical thinking skills:

1. Informed Decision-Making

Leaders are constantly faced with complex challenges. Critical thinking empowers them to gather information, assess options, and make well-informed decisions. It ensures decisions are based on facts and analysis rather than assumptions.

2. Problem-Solving Abilities: 

Leaders encounter obstacles and problems regularly. Critical thinking enables them to identify root causes, analyze potential solutions, and implement effective problem-solving strategies. It encourages a proactive approach to challenges.

3. Adaptation to Change

In today's dynamic business environment, change is inevitable. Critical thinking allows leaders to adapt to new circumstances, evaluate the impact of change, and make adjustments swiftly. It fosters resilience and flexibility.

4. Effective Communication

 Leaders must convey their vision and ideas clearly. Critical thinking helps them structure their thoughts logically, present ideas persuasively, and engage in constructive dialogues with their team, fostering collaboration.

5. Innovation and Creativity

To stay competitive, leaders need to foster innovation. Critical thinking encourages creative problem-solving and the exploration of new ideas. It allows leaders to identify opportunities for growth and adapt to evolving trends.

In conclusion, critical thinking is the cornerstone of effective leadership. It equips leaders to make informed decisions, navigate challenges, adapt to change, communicate effectively, and drive innovation. Leaders with strong critical thinking skills not only steer their organizations to success but also inspire their teams to reach new heights.

Navigating Success: Strategies for Achieving Organizational Goals

Embark on a journey of organizational excellence! Discover the power of effective goal-setting with visionary leadership, engaging teamwork, and adaptability. Unleash your team's potential and conquer new heights in the ever-evolving business landscape. Success awaits those who dare to dream big and strategize wisely.

Charting the Course: Setting Future Goals for Organizational Success

Navigating the dynamic business landscape requires strategic goal-setting. This involves visionary leadership, SMART goals, employee engagement, continuous learning, and adaptable performance evaluation. These aspects form a roadmap for success, ensuring organizations remain agile, competitive, and resilient in the face of evolving challenges.

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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 .

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Mastering Critical Thinking: A Guide for Leaders

Summary: Critical thinking is a fundamental skill for effective leadership. Top leaders think clearly and rationally, analyze and evaluate information, and make sound judgments and decisions. Here is what to know, what matters.

Dear Dr. Sylvia,

I am a great leader. I’m not bragging. I know what I know.

For example, I am great at the thirty-thousand view of what needs to be done.

However, I am a total failure at the lower level, where the weeds (daily work systems) need to be cleared. I also suck where the trees (employees or products) must be pruned.

Similarly, I want to teach my executive team how to be critical thinkers and come to me with their solutions. Then, I, as the CEO, can be extremely helpful with long-term plans.

Critical thinking is falling way behind for most of us.

What can I do to help the various teams I support grow to be the best possibl e?

At the thirty-foot level, I can help them see we are building cathedrals rather than just being stone setters.

Cathedral Builder

Dear Cathedral Builder,

I am sure you are referring to the well-known “Cathedral Story.” It goes like this: a man who passed a bricklayer and asked what he was doing.

The worker responded. “Oh, I am here every day, just putting one brick atop another. It’s a tedious and meaningless job. I can’t wait to go home.”

Then, the same man went around the corner, talked with another worker, and asked, “What are you doing?”

Above all, the response was quite different. “Oh, I’m here putting one brick on top of another to help as we build a beautiful cathedral. I know I am part of a meaningful venture. And I love how most of us work together to create what matters. I only have a small yet important part in the process.”

Critical thinking means seeing both root causes along with future vision.

Leaders skilled in critical thinking are better equipped to solve problems. They also make informed decisions and communicate their ideas effectively.

In addition, great leaders cut through the noise and distractions. Once they identify the root causes of problems, they develop creative solutions that can transform their organizations.

Consider the example of Jeff Bezos, the founder of Amazon. Bezos has been widely credited with transforming the retail industry through his innovative ideas and business strategies.

Subsequently, one of the keys to his success has been his ability to think critically. For example, when Bezos first started Amazon, he recognized that the traditional retail model was not working. He saw an opportunity to leverage the power of the internet to create a new type of retail experience. The hypothesis was that his way would be more convenient and accessible to customers.

Jeff Bezos used critical thinking to launch Amazon.

This required him to think creatively and develop a business model based on customer-centricity, innovation, and long-term growth.

Similarly, Mary Barra, the CEO of General Motor s, has been praised for her leadership skills, particularly her critical thinking ability.

In addition, when Barra took over as CEO of GM in 2014, the company faced several challenges. A major one included a significant safety crisis related to faulty ignition switches.

Mary Barra at GM recognized that the company needed to change its culture and problem-solving approach.

In short, she emphasized the importance of transparency, accountability, and collaboration. In addition, she encouraged employees at all levels to speak up and share their ideas. This helped GM to address the safety crisis, restore trust with its customers, and improve its overall performance.

Let’s explore the fundamental principles of critical thinking. This means we will provide practical strategies for leaders to apply these principles daily.

For example, we will discuss the common thinking errors and biases that impede effective decision-making. This includes the importance of effective communication.

Next, We will provide examples and case studies of leaders who have successfully applied critical thinking to achieve their goals.

By mastering critical thinking, you can become a more effective leader and positively impact your organization and community.

Critical thinking objectively analyzes and evaluates information to make informed decisions and solve problems.

All in all, it is a fundamental skill for effective leadership. This means it is essential for making sound judgments in complex and rapidly changing environments. Here we explore the basic concepts of critical thinking and the importance of developing this skill for leadership success.

• Definition of Critical Thinking: Critical thinking is analyzing and evaluating information objectively, without bias or prejudice. It involves using logic and reason to identify the strengths and weaknesses of arguments, knowledge, and evidence. By thinking critically, leaders can make informed decisions, solve problems, and communicate their ideas more effectively.
• Importance of Critical Thinking in Leadership: Effective leaders must make decisions quickly and confidently. This includes the ability to evaluate information carefully. Next, to ensure that their decisions are based on sound evidence. Critical thinking is essential for influential leaders to identify problems’ root causes and evaluate potential solutions.
• Key Components of Critical Thinking: There are several key components of critical thinking, including:

Without critical thinking, mistakes can be costly.

• Evaluating evidence : This involves examining the credibility and reliability of evidence. Then to determine its usefulness in supporting a particular argument or position.
• Identifying biases and assumptions : involves recognizing personal biases and assumptions that may influence one’s thinking and considering alternative perspectives.
• Generating and evaluating alternatives: This involves developing multiple solutions or options. The next step is to assess them based on their feasibility, effectiveness, and potential consequences.
• Critical thinking objectively analyzes and evaluates information: This is how to make informed decisions o and solve problems.

Each specific area of business has its way of looking at what is critical to success.

• Example 1: Effective Decision-Making in Healthcare: In healthcare, critical thinking is essential for making decisions that can significantly impact patient outcomes. For example, a physician treating a complex medical condition must analyze and evaluate the available information. Next, identify potential treatment options and assess their effectiveness and risks. By using critical thinking skills, the physician can make informed decisions that lead to better outcomes for the patient.
• Example 2: Strategic Planning in Business: Critical thinking is essential for strategic planning and decision-making. For example, a CEO planning to expand the company’s operations into new markets must analyze and evaluate potential risks and benefits. After that, identify potential obstacles and challenges and develop a plan that maximizes the chances of success. Using critical thinking skills, the CEO can make informed decisions leading to long-term growth and profitability.

Without critical thinking, we can end up with lost revenue and expensive legal concerns.

3. Example 3: Evaluating Scientific Research: Critical thinking is essential for evaluating the credibility and reliability of research findings. For example, a scientist conducting research on a new drug must analyze and evaluate the available data. That way, identify potential biases or flaws in the study design and evaluate the potential risks and benefits. By using critical thinking skills, the scientist can make informed decisions about the safety and effectiveness of the drug.

4. Example 4: Effective Problem-Solving in Engineering: Critical thinking is essential for effective problem-solving in engineering. For example, an engineer tasked with designing a new product must first analyze and evaluate the available information. Then go on to identify the potential design flaws or issues. And finally, develop a solution that meets the customer’s needs while adhering to safety and quality standards. Using critical thinking skills, the engineer can develop innovative solutions that improve the product and enhance customer satisfaction.

5. Example 5: Effective Communication in Public Policy: Critical thinking is essential for effective communication and decision-making in public policy. For example, a policy analyst evaluating a proposed policy starts by analyzing the potential impacts of the policy after identifying potential unintended consequences and communicating the results to the public.

All leadership teams do better if they are schooled in critical thinking. That is the major way to keep the potholes and pitfalls limited.

In summary, business, the essential motor of society, has an opportunity to be the most creative force on the planet using critical thinking as a base.

In conclusion, to everyone, and especially you, dear Cathedral builder, let’s do deep thinking so that we all have the opportunity to engage in dignified and satisfying work.

Here’s to your success,

Sylvia Lafair

PS. Much of what I learned about critical thinking is based on the work of my mentor, Willis Harma n, who taught at Stanford University and was President of The Institute of Noetic Sciences in California. You would enjoy looking at some of his books for the thirty thousand views of modern business.

PSS. Much of what I learned from Dr. Harman is now available in our Total Leadership Connections online program. Contact us for more information and to join now.

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Helping Leaders Use Critical Thinking Skills in Decision-making

• January 18, 2023

Critical thought should always precede action. Yet, it’s surprising how often business decisions are made without sufficient analysis of the objectives, options, and potential consequences of those decisions. Having enough time for critical thought is a factor, especially when choices need to made quickly. But that doesn’t mean quick decisions will always result in failure. The right kind of preparation and training can help leaders think more critically – even when time is in short supply.

First, what is critical thinking? In our work, we define the critical thinking process as “a leader’s ability and personal discipline to use a cogent, rational, reflective and evidence-based approach when analyzing, synthesizing and evaluating information to reach a conclusion or make a decision.” To put it another way, a leader who displays genuine critical thinking ability keeps an open mind, tests assumptions, and challenges beliefs to make stronger decisions.

How can leadership development and preparation help? Here are two initiatives that can assist leaders in building higher-level, decision-making skills: 

• The development of business acumen – a keen understanding of the “business of the business,” including its key strategic and financial drivers.
• The development of strong leadership accountability – a comprehensive view of the leadership responsibilities demanded by today’s successful organizations and the skills to fulfill those accountabilities.

It’s a combination that generates powerful results.

Leaders who connect business drivers to their daily decisions and actions are more likely to contribute to financial metrics and strategic goals. Business acumen for leaders allows them to think in broad terms, beyond their narrowly-focused silos, and show greater initiative and creativity in reaching their objectives.

By embracing the full range of their responsibilities, and using that view to make decisions, they inspire others and accelerate workforce alignment across all levels and departments. 

Alignment and accountability have been important among the remote workforce. Today’s big-picture thinking is about broadening business acumen and leadership accountabilities to help ensure decisions are made more critically—an approach that aligns organizational goals with personal growth and responsibilities.

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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

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February 2011

Critical thinking and judgment the key to effective leadership by colonel (retired) stephen gerras, ph.d..

Organizational Behaviorists cite several key attributes and competencies typically associated with effective leadership. High energy, conscientiousness, and cognitive ability make most lists. Unfortunately, these attributes are not very malleable, especially for adults. Fortunately, there are also several competencies—related to effective leadership but distinct from traits-- that can be developed through education, self-development, and most often, experience. Experts most often cite judgment as a key leadership competency. Leaders make dozens of judgments every day. From deciding who will get promoted to refining a strategy for entrance into a new market, leaders sink or swim depending on their ability to exercise sound judgment. How do you develop judgment? A succession of stretch assignments, for instance, will only develop judgment if leaders learn the right lessons. More importantly, if otherwise promising leaders fail to recognize "what's different?" in a new situation, they may apply the wrong lessons learned to a new situation. Enter critical thinking. Many political, business, and public sector leaders emphasize the need for Americans to become better critical thinkers. These leaders know that complexities of business in the Information Age demand better judgment—and that better judgment requires critical thinking.

Although many leaders assert the need for more critical thinking, one of the main impediments to understanding and using critical thinking centers on a lack of a common definition. No one discipline owns the construct. Most of the material about critical thinking derives from philosophy, education, and psychology. 1 Some leaders mistakenly refer to the critical in critical thinking as mere fault-finding. Fault-finding is not what critical thinking entails. The word critical refers to the purposeful, reflective, and careful evaluation of information as a way to improve one's judgment. As senior leaders, whether we are evaluating the information from a PowerPoint presentation at a business meeting, reading a newspaper article, or participating in a discussion with the head of our India office, we constantly face demands requiring critical thinking. Consequently, one of the most important things that a leader must learn is not simply how to think critically, but how to do it well.

Critical thinking is purposeful, directed thought. It requires reflective skepticism mixed with an open mind—this is a difficult combination of tasks—almost requiring individuals to simultaneously use both their right and left sides of their brain to tackle an issue. Critical thinking development requires several things. First, because it is difficult, the individual has to recognize the need for critical thinking or he may not persevere in learning the skills. Second, the basic tenets, concepts, and relationships associated with critical thinking must be learned. Third, individuals must focus on self-awareness. 360 degree feedbacks are a great way to do this. Finally, and sometimes most importantly, individuals must work in an environment that values critical thinking—this is a climate and culture issue.

A Critical Thinking Model

Figure 3-1 presents a critical thinking model that will be explained throughout the rest of this paper. Two issues need to be highlighted. First, most of the time (almost all the time) the leader needs to move across the top of the model and not do critical thinking. The great majority of the decisions and issues we face throughout the day do not require critical thinking. The route we drive to work, what clothes we wear to a party, and what book we read on Saturday are examples of decisions or concerns that do not normally require critical thinking and can be made in an "automatic" mode of cognitive thought.

An example of an automatic mode of cognitive thought is the routine of driving down the Interstate at 70 miles per hour to a familiar destination. At some point the driver may recognize that he or she is not quite sure where he or she is or does not actually remember driving the last five miles; it is probably because the mind has switched to an automatic processing mode. This is a common experience. How does the brain permit this mode of thought while operating a 5,000-pound vehicle moving 70 miles per hour and within several feet of large tractor trailers moving equally fast? The explanation is that over time, driving even at a high rate of speed becomes an "automatic" routine. To conserve mental energy, the brain tends to reduce focus, especially with seemingly routine activities. Unfortunately, most decisionmakers make judgments on significant issues using an automatic mode as opposed to taking the time and investing the energy needed for a more controlled thought process. 2

Exercising controlled thought involves the deliberate use of elements of critical thinking. Knowing when to reign back on automatic processing in order to conduct a conscious assessment of the parameters of the situation is more an art than a science. A good rule of thumb is if you are in doubt as to whether to use critical thinking about an issue, you probably ought to apply critical thinking . The main point is that most routine decisions made on a day-to-day basis do not involve critical thinking; however, once familiar with the concepts and terminology of critical thinking, you are in the position to ask yourself whether the issue being considered warrants the application of critical thinking methodology.

Second, although the model appears to be generally linear, it is not. The clouds in the center of the model labeled point of view , assumptions , and inferences are meant to demonstrate that this is generally a nonlinear model. Assumptions , for instance, will affect whether you perceive an issue to be worthy of critical thinking, and your point of view will affect how you define the boundaries of the issues. Although there are arrows going from clarify concern to evaluation of information (implying linearity), there is also a reciprocal arrow going in the reverse direction to suggest that as you are evaluating information, you may end up redefining the concern. If, for example, you are seeking to clarify concern regarding some inappropriate behavior by your teenage son or daughter, the evaluation of information may indicate that the real issue has more to do with the nature of the relationship between you and your child than the actual behavior prompting the initial concern. The nonlinear nature of the model will be more evident as you next read about its main components: clarify concern, evaluate information, consider points of view, identify assumptions, make sound inferences, and consider implications.

Clarify Concern

A critical element, and often the first step, in critical thinking methodology is to clarify concern . This is not as straightforward as it seems. When faced with a decision, leaders often spend the bulk of their time reviewing possible choices. They fail to do the up-front work of problem identification and construction. The concern or issue needs to be identified and clarified initially, yet consistently revisited as other elements of the model are considered. The term concern is preferred over the term problem because a critical thinker should be proactive as well as reactive. In many cases, the critical thinker will encounter information that causes him or her to identify related or subsequent issues that should be addressed. A critical thinker ensures that he or she has considered the complexities of the problem at hand and focused his or her mental energy appropriately. An assessment needs to determine whether the concern has unidentified root causes or unaddressed subcomponents.

Consider Points of View

Another element of the critical thinking model is considering points of view . Within the context of this model, point of view is not your opinion. We all have points of view or frames of reference. The key is to be aware of them and recognize how they may bias our thinking. We want to develop a frame of reference that is evenhanded and open to other points of view. In fact, it may become absolutely essential that we examine a problem from a variety of points of view. Good critical thinkers, however, do their best to recognize their own point of view and to consider, understand, and even empathize with other views.

As we attempt to empathize with the viewpoint of others, our own self-awareness becomes increasingly important. Leaders need to be self-aware of egocentric tendencies , which are probably the most significant barrier to effective critical thinking 3 . Because of their typical track record of success and achievement, corporate leaders have exceptional confidence in who they are and the validity, accuracy, and correctness of their views.

Unfortunately, this constant positive reinforcement in the form of promotion and selection for key jobs sometimes encourages an absolutist frame of reference within a narrow point of view. Many college students, for example, think that they have figured out how the world works, and they are exceedingly confident that their view is correct. This type of egocentric leaning tends to also insulate leaders with regard to their actual thinking processes and often presents a significant obstacle to their empathizing with and considering the viewpoint of others.

A critical thinker must be aware of several egocentric tendencies. Egocentric memory is a natural tendency to forget information that does not support one's line of thinking. Egocentric myopia refers to thinking within an overly narrow point of view. Egocentric righteousness describes a tendency to feel superior based on the belief that one has actually figured out how the world works. Egocentric blindness is the natural tendency not to notice facts and evidence that contradict what one believes or values. 4 Fortunately, just as egocentrism can prevent us from appreciating the underlying thinking processes that guide our behavior, critical thinking, especially in the form of appreciating multiple points of view, can help us learn to explicitly recognize that our point of view is often incomplete and sometimes blatantly self-serving and wrong. 5

Identify Assumptions

A third component of the critical thinking model is to identify assumptions . An assumption is something that is taken for granted. As critical thinkers, we need to be aware of the beliefs we hold to be true, which have been formed from what we have previously learned and no longer question. We typically process information based on assumptions about the way the world works and operate below the level of consciousness. These are sometimes referred to as mental models or schemas.

The arrows in the critical thinking model show that various assumptions influence all aspects of the model. Indeed, our point of view, our inferences, and whether we decide a problem is worthy of critical thinking all affect how we pose questions, seek solutions, and select answers. Truly, the more in touch an individual is with his or her assumptions, the more effective a critical thinker he or she will be.

Peter Senge wrote in The Fifth Discipline about the importance of dialogue, as opposed to discussion, in a learning organization. He posits, "In dialogue, a group explores complex difficult issues from many points of view. Individuals suspend their assumptions but they communicate their assumptions freely." 6 To suspend assumptions, leaders must first be aware of them. This reflective self-inquiry, in relation to a specific concern, is extremely important in the critical thinking process, as is the creation of a climate in which individuals feel free to communicate their assumptions and to question others.

Make Sound Inferences

Another component of the critical thinking model that needs to be considered is to make sound inferences . Critical thinkers need to be skilled at making sound inferences and at identifying when they and others are making inferences. An inference is a step of the mind or an intellectual leap of faith by which one concludes that something is true because something else is true or seems to be true. Whereas an assumption is something we take for granted, an inference is an intellectual act in which we conclude something based on the facts and evidence of a situation.

Critical thinkers strive to become adept at making sound inferences. 8 Ask yourself, What are the key inferences made in this situation? Then ask yourself if the inferences are justified, logical, and follow from the evidence. Remembering the earlier components of the critical thinking model, obviously inferences are heavily influenced by the point of view and assumptions we bring to the issue. This explains why two leaders viewing the same PowerPoint slide may come to completely different conclusions in terms of what the data mean or represent.

Evaluate Information

The most detailed part of the critical thinking model focuses on the evaluation of information and stems from the disciplines of behavioral economics, psychology, and philosophy. First, this paper will address some of the shortcuts humans habitually take that often lead to decision making biases. Finally, it will provide an overview of many of the logical fallacies that undermine information evaluation.

Decisionmakers often rely on simplifying strategies or "general rules of thumb" called heuristics , which are a mechanism for coping with decision-making in volatile, uncertain, complex, and ambiguous (VUCA) environments. Critical thinkers need to appreciate not only the framework for assessing their own thinking, but also the heuristics that they and others rely upon when making decisions. The concept of heuristics relates strongly to the automatic mode of cognitive thought described earlier.

Heuristics as an aid to decision-making are not bad; in fact, if we did not use heuristics, we would probably be paralyzed with inaction. As an example, you might have a heuristic for which coat to wear to work each day. Your heuristic might be, "If there's frost on the car, I wear the parka." Without this heuristic shortcut, you would have to check the thermometer and compare it to a chart that prescribed the correct coat to wear under certain temperature conditions.

Heuristics help leaders to make good decisions rapidly a significant proportion of the time. Unfortunately, however, heuristics also can lead decisionmakers into making systematically biased mistakes. Cognitive bias occurs when an individual inappropriately applies a heuristic when making a decision. 9 As critical thinkers, we need to be aware of cognitive biases to more effectively evaluate information.

There are three general heuristics: (1) the availability heuristic, (2) the representativeness heuristic, and (3) the anchoring and adjustment heuristic. The availability heuristic acknowledges that people typically assess the likelihood of an event by the ease with which examples of that event can be brought to mind. Typically, people recall events that are recent, vivid, or recurrent. This heuristic works well in most instances; however, a critical thinker needs to be aware of the biases that result from an expeditious process. For example, a senior leader doing performance appraisals on two equally capable subordinates might be inclined to give the subordinate who challenged him at the last team meeting a lower rating. The recentness and vividness of the challenge might cause the senior leader to overlook the impressive accomplishments of this particular subordinate and accord a rating that is actually inconsistent with the individual's performance. This would be, in effect, a poor decision.

The representativeness heuristic focuses on the tendency for people to make judgments regarding an individual, object, or event by assessing how much the item of interest is representative. Several biases emanate from this heuristic; two of the most prevalent are problems with sample size and regression to the mean. Sample size bias occurs when decisionmakers improperly generalize the reliability of sample information. Leaders often draw important conclusions based on information they receive from one or two individuals; this is often problematic. Skilled critical thinkers routinely ask themselves, "Am I drawing a conclusion based on data from a fair and representative sample?" Regression to the mean bias is based on research that extreme high or low scores tend to be followed by more average scores. Therefore, when predicting future performance, decisionmakers often assume poor performers will stay poor (i.e., they are representative of poor performers) and strong performers will stay strong. Unfortunately (or fortunately), extremely low or high performance is typically followed by a performance level closer to average. This is why the sports teams that make the cover of Sports Illustrated tend to lose and the mutual fund that was the strongest performer last year is probably not the one to buy this year.

Finally, insufficient anchor adjustment is a powerful bias. Research has shown that decisionmakers develop estimates by starting from an initial anchor, based on whatever information is provided, and adjust from there to yield a final answer. 10 Effective leaders are aware of this bias and consciously ensure they do not get locked into a course of action because they failed to shift from the first option provided. A practical application of ways to use this bias to one's advantage can be seen in negotiations. It is usually good to initiate the first offer in a negotiation if you have reasonable belief that you understand the bargaining zone. The opening offer will serve as the anchor and will most likely create a range for possible negotiation that will be more advantageous to you.

In addition to developing an understanding of biases and heuristics as a means to improve his or her ability to evaluate information critically, a strong critical thinker also assesses the soundness of the arguments presented. When we make an argument, we offer reasons as to why others should accept our view(s) or judgment. These reasons are called premises (or evidence), and the assertion that they allegedly support is called the conclusion. 11 A sound argument meets the following conditions:

• Are premises are acceptable and consistent.
• The premises are relevant to the conclusion and provide sufficient support for the conclusion.
• Missing components have been considered and are judged to be consistent with the conclusion. 12

If the premises are dubious or do not warrant the conclusion, our argument is fallacious. In accord with the critical thinking model, as we evaluate the information presented, we need to keep in mind our tendency to let biases influence our decision-making. We also need to be aware of the traditional types of fallacious reasoning that are often used, sometimes intentionally and sometimes out of ignorance, to try to convince us to support an argument. Fallacious reasoning can take several forms, including arguments against a person, false dichotomies, appeals to unqualified authority, false causes, appeals to fear, appeals to the masses, slippery slopes, weak analogies, and red herring.

Fallacies are very common, and they are typically convincing. Recently, for example, in a TV documentary about alternative medicine, a U.S. Senator defended his congressional bill to exclude vitamins and herbal medicines from USDA review by saying, "At least 100 million Americans use vitamins and other supplements every day and they can't all be wrong [appeal to the masses]; I know many Senators who also use these products [appeal to unqualified authority]; this is just another case of the liberal left trying to intrude on the daily life of the average American [arguments against the person]."

The average viewer probably thought these arguments made sense, but as critical thinkers, we need to assess arguments, especially important and relevant arguments, to identify fallacious reasoning. Bad judgments prompted by fallacious reasoning that draws upon invalid and questionable evidence are the enemy of critical thinkers.

Unfortunately, logically fallacious arguments can be psychologically compelling. Many leaders, because they have never really learned the difference between a good argument and a fallacious one, are often persuaded to accept and believe things that are not logically supported. As a critical thinker evaluates information, he or she needs to ask: Are the premises acceptable? Are they relevant? Are they sufficient? If the answer to any of these questions is no, the argument is not logically compelling.

Consider Implications

The last component of the critical thinking model is to consider implications . Critical thinkers need to understand the short-term consequences of accepting initial inferences or resisting opposing perspectives. They obviously also have to appreciate the long-term consequences of the information they accept and the decisions they make, including the second- and third-order effects. Critical thinkers ask themselves, "What if my assumptions are incorrect? What if the variables I think are defined are actually uncertain or quite different from what I think? What things haven't I considered that I need to consider?" Many of these questions will be ignored or minimized if the egocentric tendencies discussed earlier override sound judgment.

As part of considering implications, the critical thinker needs to analyze the impact of a decision on all relevant stakeholders. A stakeholder is a person, group, or unit that has a share or an interest in a particular activity or possible decision. 14

The bottom line is that a critical thinker considers all these things in a deliberate and conscious manner. All leaders, but especially senior leaders, must continuously ask themselves, "Is this something I need to think about critically? How are my egocentric tendencies and point of view affecting the way I look at this? What is the point of view of the person presenting the information? What are my assumptions? Are we making the correct inferences based on the data provided? Are there other data we need to consider and can access? Is the information true, or at least plausible? Are the conclusions warranted by the evidence? Are biases and traps affecting our judgment? Have I considered all the implications?" The more we can introduce these terms and concepts into our thought processes, the more we will exercise sound judgment and make better decisions, become more skilled negotiators, and improve our leadership skills.

• Susan C. Fischer and V. Alan Spiker, Critical Thinking Training for Army Officers , Vol. 1: A Model of Critical Thinking (Alexandria, Virginia: U.S. Army Research Institute for the Behavioral and Social Sciences, May 2004), 3.
• For a good discussion on automatic versus controlled processing, see Robert G. Lord and Karen J. Maher, "Cognitive Theory in Industrial and Organizational Psychology," in Handbook of Industrial and Organizational Psychology , ed. Marvin D. Dunnette and Leaetta M. Hough (Palo Alto: Consulting Psychologists Press, 1991).
• Richard Paul and Linda Elder, Critical Thinking, Tools for Taking Charge of Your Learning and Your Life (Upper Saddle River, NJ: Prentice Hall, 2001), 214.
• Ibid., 234.
• Ibid., 233.
• Peter M. Senge, The Fifth Discipline (New York: Doubleday, 1990), 241.
• Paul and Elder, 70.
• Ibid., 102.
• Max H. Bazerman, Judgment in Managerial Decision Making (Hoboken, NJ: John Wiley & Sons, 2002), 6–7.
• Theodore Schick, Jr., and Lewis Vaughn, How to Think About Weird Things––Critical Thinking for a New Age , 3rd ed. (New York: McGraw Hill, 2002), 298.
• Diane F. Halpern, Thought & Knowledge: An Introduction to Critical Thinking, 4th ed. (Mahway, NJ: Lawrence Erlbaum Associates, 2003), 203.
• Schick and Vaughn, 298.
• Thomas L. Wheelen and J. David Hunger, Strategic Management and Business Policy , 3rd ed. (Reading, MA: Addison-Wesley Publishing Company, 1989), 89–90.

Dr. Stephen Gerras presents a workshop on critical thinking. For more details, please email Dennis Haley or call 610.783.0630.

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• Jul 12, 2023

Balancing Critical And Creative Thinking For Effective Leadership

Written by: konstantina karatza , executive contributor, executive contributors at brainz magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise..

In the dynamic and ever-evolving world of leadership, two modes of thinking play a crucial role in driving success and innovation: critical thinking and creative thinking. These two cognitive processes, though distinct, are equally valuable for effective decision-making and problem-solving. While critical thinking enables leaders to analyze and evaluate information objectively, creative thinking empowers them to generate novel ideas and explore alternative possibilities. Striking a balance between these two thinking styles is essential for leaders to navigate complex challenges and inspire their teams toward meaningful achievements.

Critical thinking, characterized by logical reasoning and evidence-based analysis, is a systematic approach to problem-solving. Leaders who engage in critical thinking meticulously examine information, question assumptions, and evaluate the validity of arguments. They rely on data-driven insights, explore cause-and-effect relationships, and seek objective evidence before making informed decisions. By analyzing risks, identifying potential pitfalls, and weighing pros and cons, leaders employing critical thinking minimize errors and make sound judgments.

Furthermore, critical thinking helps leaders uncover biases and challenge the status quo. By adopting a skeptical mindset, they can identify flaws in existing processes and propose improvements. This kind of thinking ensures that leaders are not swayed by popular opinions or conventional wisdom but instead base their decisions on logical analysis and objective facts.

On the other hand, creative thinking is a cognitive process that allows leaders to transcend conventional boundaries and envision innovative solutions. It involves the generation of fresh ideas, combining unrelated concepts, and thinking beyond traditional approaches. Creative leaders encourage divergent thinking, embracing ambiguity and uncertainty as catalysts for breakthroughs. By encouraging their teams to explore different perspectives and experiment with new approaches, leaders foster an environment that nurtures creativity.

Creative leadership thinking also involves connecting seemingly unrelated dots and identifying patterns or opportunities that others might miss. It allows leaders to approach problems from different angles, considering multiple possibilities and brainstorming creative solutions. Leaders can inspire their teams to take risks, embrace change, and think outside the box by cultivating an environment that values and encourages creative thinking.

While critical thinking and creative thinking offer unique advantages, the most effective leaders recognize the importance of balancing these two approaches. A leader who solely relies on critical thinking may find themselves confined by traditional norms, missing out on innovative solutions and growth opportunities. Conversely, leaders who overly prioritize creative thinking without critical evaluation risk making impulsive decisions that may not be based on a solid foundation of evidence.

Achieving the ideal balance between critical thinking and creative thinking is a challenging task. Leaders must be adept at leveraging critical thinking to evaluate and validate creative ideas while embracing the potential of creative thinking to explore new possibilities. By effectively combining these thinking styles, leaders can make informed, well-rounded decisions that embrace both logic and innovation.

Organizations can implement strategies such as cross-functional collaboration, diverse teams, and encouraging open dialogue to foster critical and creative thinking in leadership. By creating an environment that values diverse perspectives and challenges conventional thinking, leaders can harness the power of both critical and creative thinking to drive growth and success.

Let's explore strategies to balance critical and creative thinking in leadership

Embrace an Open Mindset: To achieve a balance between critical thinking and creative thinking, leaders must adopt an open mindset that welcomes diverse perspectives and ideas. Encourage your team members to challenge assumptions, question existing processes, and explore alternative solutions. Create a safe space where innovative thinking is encouraged and dissenting opinions are valued. By fostering an environment that embraces both critical and creative thinking, leaders can set the stage for productive collaboration and breakthrough ideas.

Define Clear Objectives: When tackling complex problems or making important decisions, it's essential to define clear objectives. Critical thinking comes into play when evaluating options and assessing potential risks and outcomes. Ensure that you have a solid understanding of the problem at hand, gather relevant data, and objectively analyze the available information. Critical thinking helps you assess the viability and feasibility of different solutions, ensuring that your decisions are based on sound reasoning.

Encourage Divergent Thinking: Creative thinking flourishes when leaders encourage divergent thinking. Create brainstorming sessions or ideation workshops where team members can freely share their ideas, regardless of how unconventional they may seem. Foster an atmosphere that promotes curiosity, experimentation, and exploration of different possibilities. By allowing your team members to think creatively, you open the door to innovative solutions that can drive your organization forward.

Seek Input from Various Sources: To balance critical and creative thinking, it's crucial to seek input from diverse sources. Engage with people from different backgrounds, disciplines, and perspectives. This diversity of thought can help challenge your assumptions, broaden your understanding of the problem, and expose you to fresh ideas. By incorporating a wide range of inputs, you can enrich your critical thinking process and inspire creative insights that you may not have considered otherwise.

Foster Collaboration: Collaboration is a powerful tool for combining critical and creative thinking. Encourage interdisciplinary teamwork, where individuals with different expertise and thinking styles can collaborate on projects and initiatives. When team members with diverse perspectives come together, they can leverage critical thinking to evaluate ideas and creative thinking to generate innovative solutions. Foster a culture of collaboration that values both rigorous analysis and imaginative thinking.

Iterate and Refine: Balancing critical and creative thinking is an iterative process. As a leader, be open to revisiting and refining your ideas and decisions. Recognize that initial solutions may require adjustment or modification based on feedback and new insights. Critical thinking enables you to evaluate the effectiveness of your chosen course of action, while creative thinking allows you to explore new possibilities for improvement. Embrace a growth mindset that values continuous learning, adaptation, and refinement.

Develop a Balanced Skill Set: Leaders must strive to develop a balanced skill set that encompasses both critical and creative thinking. Sharpen your critical thinking skills by honing your analytical abilities, understanding logical reasoning, and staying informed about relevant industry trends. Simultaneously, nurture your creative thinking by engaging in activities that stimulate your imagination, such as reading, art, or brainstorming exercises. By continuously developing both sets of skills, you'll be better equipped to strike the right balance in your leadership approach.

In conclusion, balancing critical thinking and creative thinking is vital for effective leadership. Embracing this balance enables leaders to make informed decisions while also driving innovation and fostering a culture of creativity within their organizations. By leveraging the power of critical and creative thinking in tandem, leaders can navigate complex challenges, inspire their teams, and lead their organizations to long-term success in today's rapidly changing business landscape.

For more info, follow Konstantina on Linkedin or visit the Sisu Communication site .

Read more from Konstantina!

Konstantina Karatza, Executive Contributor Brainz Magazine

Konstantina Karatza, a seasoned professional with nearly 20 years of experience in the advertising industry, made a career transition five years ago to pursue her passion for Leadership Coaching. As the founder of Sisu Communication, she is dedicated to empowering individuals and organizations to reach their full potential by embodying values such as creativity, communication, and trust. Konstantina's deep passion for traveling and exploring diverse cultures has enhanced her understanding of human dynamics and enriched her ability to connect with individuals from all walks of life, enabling her to foster inclusive environments and promote cultural awareness within organizations.

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How to Build Your Judgment and Critical Thinking

Blessed are the critical thinkers: for they help us understand and find truth..

Posted April 28, 2022 | Reviewed by Lybi Ma

• Each person has the strength of judgment they can tap into.
• A critical thinking blessing is one practical strategy you can use for building this strength.
• Observing the processes of good critical thinkers can help you enhance this strength.

Us vs. them. In-group vs. out-group. Good guys vs. bad guys. Polarization is at an all-time high. What might be an antidote?

One step in the right direction is to increase our character strength of judgment , also called critical thinking . This strength is about the pursuit of truth. It reminds us that truth is not found in impressions, stereotypes, quick glances, and preconceived notions. It is found with a persevering and always-evolving process of reflection, introspection, analysis, and open-mindedness to other views. It is found not by flipping on a political news program but by flipping on your thinking in new ways. It is found not by surfing through social media headlines but by looking for exceptions to your existing views.

How can we build this character strength? One strategy is to observe, study, and learn from those who express the strength well. What does an exemplar of critical thinking say about this strength? How do they act? Let’s find out.

Davis, an accomplished musician and decorated police chief, was a master critical thinker. He has been known throughout his community for his logic and good judgment. He has loved looking at every detail of a situation, especially his beliefs about things. He has been analytical about anything potentially controversial such as spirituality , politics , family life, and personal problems. He doesn't take his beliefs about things for granted. Rather, he goes deeper. He has sought out universal truths (and never took those for granted either).

When interviewed about his critical thinking, Davis offered several insights and practical strategies for appreciating and building this strength.

You are known as a great critical thinker. How do you use this strength of character?

When I am faced with a dilemma or controversy, I ask myself several questions:

• How is my belief or what I’m thinking about now not true ?
• What are the exceptions to my belief?
• What would someone from a different culture or lived experience say about my ideas?
• What am I missing, forgetting, or not including?
• If I wouldn’t stake my life on my conclusion or my belief, what part of it makes me most hesitant?
• If I was to become just a little bit more accurate or get a bit more detail on the situation, what would it be?

Wow, you really have a solid approach of “drilling down” to get to the core of that which is most essential.

I think of it like I am peeling layers of veneer in my mind. I try to peel away my first impression and I peel away my biases such as the automatic tendency to look for support for my beliefs. I peel away the layer of expectations I have of society. I peel away my automatic reactions to please or to impress others. I just keep going in the pursuit of a greater truth. Then, I remind myself that that greater truth I find is not perfect and absolute and finished, but it is better than what I started with.

Judgment or critical thinking is the ultimate “mind strength.” Doesn’t that mean you get lost in your head and miss the heart?

I see the mind and heart as one. They are completely interconnected. Each offers a different lens or starting point. A good critical thinker sees and experiences both of these lenses and others. My typical approach is to start with the analyses I mentioned to get past the multitude of biases I am subject to. I know that when I get closer to a truth I am touching my heart. I can feel it in my chest. Some people do this process in reverse and start with the heart. Each person makes their own decision on what’s best for them.

Spoken like a true critical thinker. Who takes the reverse process? Can you offer an example?

Actually, I do. As a critical thinker, I don’t want to get locked into one approach. It behooves me to be open to different analyses and ways of interacting. For example, when a person is very locked into a particular way of thinking that I perceive to be unhealthy or have negative consequences, my first step is to “appeal to their heart.” I empathize with them; I show them understanding, even though I may not agree with them. I can always offer that gift of understanding. I might also share with them how their views do not seem to align with their values. From there, my critical thinking helps me provide details and logical reasons for the misalignment I perceive. Still, I maintain an open-mindedness to be wrong, to be challenged, to be corrected.

What you are describing seems to have implications that go far beyond you and the people you interact with. How would you describe the potential of your approach?

I think of the pursuit of truth as very spiritual. A universal truth provides connection and sustenance between people. It reaches and expresses our common humanity. This is of great importance to philosophers, proponents of religion, and people across nations. When a truth is identified, there is greater acceptance within a divided group and across groups. This reminds us of some of the spiritual truths of the human condition that we are more alike than different, genetically speaking 99.9 percent the same, and also that all of us on the planet are all in this together.

Getting Practical: Use the Critical Thinking Blessing

You can use the critical thinking-judgment beatitude, "Blessed are the critical thinkers: for they help us understand and find truth" (Niemiec, 2021), to appreciate the depth of this strength of critical thinking-judgment in yourself and in others.

• In yourself : In what situations has this beatitude been a reality for you?
• In others : Identify someone in your life who is high in critical thinking-judgment. Explain to them how you have benefitted from observing and experiencing this strength from them.

This article is part of an exclusive blog series on the 24 character strengths blessings/beatitudes. See the new, scientific article, called Character Strengths Beatitudes: A Secular Application of Ancient Wisdom to Appreciate Strengths for Spiritual Happiness and Spiritual Growth (Niemiec, 2021), published in the journal Religions .

Judgment/critical thinking is one of 24 universal character strengths found across countries, cultures, and beliefs, as uncovered by modern-day scientists.

Ryan M. Niemiec, Psy.D. , is the education director at the VIA Institute on Character.

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Effective Decision Making: Thinking Critically and Rationally

Program overview.

Emphasizing the importance of long-term strategic decision making, Effective Decision Making: Thinking Critically and Rationally is designed to improve managers’ judgment and critical thinking skills using proven approaches, cutting-edge research, and behavioral economics.

Participants will understand the decision-making process from start to finish, with the ability to recognize cognitive biases that inhibit good decisions. This strategic decision-making program enhances participants' capacity to make well-thought-out individual, group, and organizational decisions.

Date, Location, & Fees

If you are unable to access the application form, please email Client Relations at [email protected] .

May 20 – 24, 2024 Philadelphia, PA $12,000

November 11 – 15, 2024 Philadelphia, PA $12,500

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Program Experience

Who should attend, testimonials, highlights and key outcomes.

In Effective Decision Making: Thinking Critically and Rationally , you will learn how to:

• Make decisions in a dynamic of uncertainty
• Build adaptability into your decisions
• Provide the leadership to mitigate the effects of cognitive biases
• Understand the role of emotions and ethics in decision making
• Develop tools to improve individual and organizational decision making

Experience & Impact

In an uncertain business environment, a major challenge is being a decisive, strategic leader. Effective Decision Making: Thinking Critically and Rationally is designed to improve your judgment and guide you to think rigorously and critically.

Wharton faculty, led by Professor Maurice Schweitzer, apply their field-based research and the latest strategic insights to help you broaden your perspective on how to influence, persuade, and make informed, strategic decisions without bias. You will be exposed to new tools and actionable knowledge that will make an immediate impact on how you lead your organization.

Session topics include:

• Rule-Based Decision Making
• Combining Opinions
• Thinking Ethically
• Judgment and Decision Making: The Logic of Chance
• Trust and Cooperation
• Power of Negative Thinking
• Decision Hygiene
• The Role of Data in Decision Making
• Group Decision Making

Through highly interactive lectures, exercises, and case studies, both in the classroom and in smaller work groups, this deep dive into the art and science of decision making will enhance your effectiveness as a leader.

Convince Your Supervisor

Here’s a justification letter you can edit and send to your supervisor to help you make the case for attending this Wharton program.

Due to our application review period, applications submitted after 12:00 p.m. ET on Friday for programs beginning the following Monday may not be processed in time to grant admission. Applicants will be contacted by a member of our Client Relations Team to discuss options for future programs and dates.

Effective Decision Making: Thinking Critically and Rationally is designed for executives who are moving from tactical to strategic roles and for those involved in cross-functional decisions. It is of particular benefit to organizations and industries whose decision-making approaches are shifting as a result of high levels of uncertainty, including telecommunications, financial services, and health care.

Participants leave the program with an expanded peer network, plus specific tools and frameworks they can use to enhance how they approach decisions across their organization.

Fluency in English, written and spoken, is required for participation in Wharton Executive Education programs unless otherwise indicated.

Participant Profile

Participants by Industry

Participants by Job Function

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Plan Your Stay

This program is held at the Steinberg Conference Center located on the University of Pennsylvania campus in Philadelphia. Meals and accommodations are included in the program fees. Learn more about planning your stay at Wharton’s Philadelphia campus .

Group Enrollment

To further leverage the value and impact of this program, we encourage companies to send cross-functional teams of executives to Wharton. We offer group-enrollment benefits to companies sending four or more participants.

Maurice Schweitzer, PhD See Faculty Bio

Academic Director

Cecilia Yen Koo Professor; Professor of Operations, Information and Decisions; Professor of Management, The Wharton School

Research Interests: Decision making, deception and trust, negotiations

Thomas Donaldson, PhD See Faculty Bio

Mark O. Winkelman Professor; Professor of Legal Studies and Business Ethics, The Wharton School

Research Interests: Business ethics, corporate compliance, corporate governance

Cade Massey, PhD See Faculty Bio

Practice Professor, Operations, Information and Decisions, The Wharton School

Research Interests: People analytics, judgment under uncertainty, organizational behavior

Joseph Simmons, PhD See Faculty Bio

Dorothy Silberberg Professor of Applied Statistics; Professor of Operations, Information and Decisions, The Wharton School

Research Interests: Judgment and decision making, experimental methods, consumer behavior

Abraham Wyner, PhD See Faculty Bio

Professor of Statistics; Director of Undergraduate Program in Statistics; Faculty Lead of the Wharton Sports Analytics and Business Initiative, The Wharton School

Research Interests: Baseball, boosting, data compression, entropy, information theory, probabilistic modeling, temperature reconstructions

Annie Duke See Faculty Bio

Speaker, Decision Strategist, and Former Professional Poker Player

Ernest D. Haynes III  VP & General Manager, Sonoco

The timing for taking Wharton’s Effective Decision Making: Thinking Critically and Rationally was ideal because I am moving from a sales leadership role with Payer & Health System customers to an enterprise role where more strategic thinking will be needed. In my new position my remit will be to support and build the commercial capabilities of the entire enterprise. I have been customer facing for most of my career and now I will be working with more of an in-building team where pulling out the best ideas and thinking from my teammates will be critical. Wharton’s coursework and faculty’s way of thinking about decision making and how to be a better strategic thinker will absolutely help me in my new role. Two insights really struck me — one was strategies for how to get the best ideas, feedback, and insights from everyone on the team and how to fine-tune the ideas that surface, and the other was the thinking around randomness and how you have to be sure you are rewarding the process — not just the outcome — because oftentimes great or bad results can be driven by multiple factors, including bias. The pharma industry faces many challenges, especially in the areas of transparency and addressing the issue of the cost of drug products to the patient. How do you find the right balance between having a profit so you can innovate but being able to bridge for patients who need to be able to afford your innovation? Whoever cracks that nut and builds that bridge between innovation, affordability, and patient access will get the keys to the kingdom. Another issue we grapple with is around accessing physicians — as an industry we essentially have the same selling model as 50 years ago. In this digital age, we have to think about how we find the right balance of face-to-face engagement as well as building other ways to inform and educate physicians in real time. Wharton teaches you how to think about how best to approach problems like these — by using the tools that I learned in this course, I believe that in my new role, my team will net better results as we seek to solve complex issues like these facing our company and our industry. Also, now I have a broader network through Wharton that will be able to support me as I grow as a leader in my organization.”

Caroline DeMarco  Vice President, Commercial Capabilities, Strategic Planning & Operations, GSK

What drew me to Wharton was its reputation and the deep selection of courses. A key takeaway for me in Effective Decision Making: Thinking Critically and Rationally was understanding the bias in qualitative information. I come from more of a quantitative background dealing with data, but as you advance through your career, the qualitative aspect of decision making becomes more important — the soft skills and our ability to use qualitative information to make effective decisions. When it comes to strategic decision making, there are no absolutes — you frequently have to make decisions without 100 percent of the information. This class really gives you pause to consider the implications of decisions, knowing that you don’t have 100 percent of the information. This has direct relevance to my role in risk management because we don’t deal with anything that is black and white. Wharton’s insights on qualitative decision-making bias also influenced what I wrote in an article on reputation risk that will appear in the RMA Journal .”

Joseph Iraci  CRO of Regulated Entities & Managing Director of Financial Risk Management, TD Ameritrade

I am the director of the John Templeton Foundation’s character development portfolio. I oversee 60 grants that include research and programmatic grants focusing on advancing the science and practice of character. My greatest challenge is identifying the proposals that will yield important information about the cultivation of good character. In Effective Decision Making: Thinking Critically and Rationally we heard the latest research from experts in business, psychology, and law. These scholars are also very talented at translating that research and making it relevant to organizations independent of industry. They sparked a lot of my own thinking and ideas of ways in which we could use this research to improve the outcomes at our foundation. We like to think our decision-making processes are objective and free of bias, but bias is a part of human nature and as the workshop highlights, you will make far better, more strategic decisions if you understand what the biases are and how they influence your thinking. I came home with dozens of pages of notes for how my organization might use this latest research on strategic decision making to improve our own practices. Personally, I consider bias on a more regular basis and more intentionally, trying to build systems into my own process to mitigate the effects of these biases. Another lecture topic was on the logic of chance, which is very relevant to philanthropy. We spend a lot of time and resources trying to identify the best proposal to yield insights into character, but there is a lot of chance involved. We can’t guarantee results, but understanding the role chance plays in achieving an outcome is powerful. Wharton’s program was immediately applicable to my work. We are currently going through a strategic planning process and our foundation’s president asked the senior grant-making staff to brainstorm a number of ideas to pursue in the next round of our planning; during one of our off-site retreats, she used Wharton’s process for brainstorming. It was also great to have different perspectives in the program. We had participants from Nigeria, South Korea, and Brazil, and when the law professor shared a case study about Walmart and their practices abroad in the context of ethical decision making — specifically around the issue of bribery — it was fascinating to hear from individuals who do a lot of work abroad who could provide greater context. To conclude, this was an outstanding program, which would be valuable for any executive in any field. It’s about better thinking — becoming more cognizant of how to make better decisions.”

Sarah Clement  Director of Character Virtue Development, John Templeton Foundation

I decided to attend the Effective Decision Making: Thinking Critically and Rationally program at Wharton to help me make even more effective decisions. As a result of my attending, I was able to broaden my strategic-thinking perspective based on insights from their highly impressive team of professors and colleagues who attended from a diverse range of functions, industries, and countries. There were several key takeaways that I have been able to leverage in my day-to-day work responsibilities, including the following: You cannot judge the quality of individual decisions based on their outcomes; instead, the quality should be judged on the process that was used to make them People tend to be overly precise while they should consider a much larger range of possibilities Even dramatically different outcomes can be purely the product of chance My overall experience exceeded my expectations. I plan on keeping in touch with a few of the colleagues whom I met and I certainly expect to find my way back to Wharton!”

Jonathan Hirschmann  Animal Health Executive

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Understanding the Roots of Leadership

“A sense of perspective may be among the most critical leadership qualities.” —Joshua Rothman

Which leadership values are important? To answer this question, we need greater insight into the history and context of leadership in Western society. Josh Rotherman’s leadership article in The New Yorker describes the leading trends in American culture and what we can learn from those trends. Understanding those trends is essential to consider how to assess our leadership development.

Rothman concludes his study of leadership analysis with the thought “a sense of perspective may be among the most critical leadership qualities.” Perhaps the best place to start thinking about today’s leadership trends is how to relate these trends to our work by understanding the context of others’ impressions and conceptions. At the heart of Rothman’s assessment is the belief that leaders need to carefully consider the impact of their leadership in a long-term sense. In this 16-minute video, listen to Conley’s thoughts on how one can best determine what makes life worthwhile and how that relates to our leadership practices. While listening, notice how his thoughts refer to the importance of ethical value determination as a critical influence in conceptualizing aligning one’s life with one’s passion and work.

Legacy Connects to Influence

According to John Maxwell and Jim Dornan, there is inherent value in considering the perspective and legacy to become a person of influence and to develop the core of ethical, visionary thinking to make a difference. In their work Becoming a Person of Influence , they argue that one must develop essential leadership competencies toward better ethical decision-making. Maxwell and Dornan contend that leadership success is directly comparable to the principles of good thinking and strong convictions. They argue that the key to success is the everyday strategies leaders can use, which are based on the ten characteristics listed above. A person becomes influential when they possess integrity, nurture relationships with others, have faith in other people, demonstrate absolute conviction in their words and actions daily, listen to others, understand where others are coming from, mentors others through exceptional care, navigate individuals by centering themselves on those individuals, connect with others by becoming authentic in their approach, empowers others by going out of the way to help and advocate for them and produces/fosters others who follow and make an ethical difference.

The Importance of Credibility

“The center of gravity for business loyalty–whether it be the loyalty of the customers, employees, investors, suppliers, or dealers–is the personal integrity of the senior leadership team and its ability to put its principles into practice.” 

Moral leadership leaves a legacy focusing on ten items (see box above) (Maxwell and Dornan, 2006). They write we don’t know exactly what your life dream is or the legacy you want to leave. But to make an impact, you must be capable of influencing others. There is no other way of effectively touching people’s lives. And if you become a person of influence, then maybe someday, when other people write down the names of those who made a difference in their lives, your name might be on it (Maxwell and Dornan, 2006). At their root, moral principles and ethical decision-making must incorporate the element of humbleness, authenticity, compromise, and legacy; all essential characteristics or factors to consider in assessing the place of leaders in society. Reichheld, in his article “Loyalty Rules: How Today’s Leaders Build Lasting Relationships,” makes this clear by writing it “is the personal integrity of the senior leadership team and its ability to put its principles into practice” (Reichheld, 2008) that determines how these values contribute to the result of credibility.

In watching Martin Luther King’s “I Have a Dream Speech ,” where do you see Maxwell and Dornan’s characteristics at work? Which component seems paramount as King iterates his vision for a more just society? What values does King refer to that we could safely say we are essential in determining effective, ethical leadership as we think about the importance of perspective, legacy, and credibility?

The critical value of credibility can also be seen in the famous text The Leadership Challenge by Kouzes and Posner.   This belief is reinforced in the chapter “Credibility is the foundation of leadership.”  Without credibility, they believe, one can not adequately lead any organization. People look for consistency between word and deed. In addition, confusion over what values are most important or character of word and deed can cause stress, leading to several adverse outcomes that influence the ethical climate. Credibility can be most accurately divided into two core moral values central to moral outcomes: honesty and visionary thinking.

Research by Kouzes and Posner confirms that credibility is based on the forward-thinking attitude or visionary projection that a leader reveals and oversees. To accomplish this, leaders must be competent. Fundamentally this is based on one’s honesty which mirrors their credibility. In determining effective leadership, there is no way to escape the connection between results, one’s track record, and the moral value of honesty. Without all of these elements, one’s leadership will suffer.

The Leadership Challenge

Creditability is the root of the five leadership practices central to ethical leadership in the Leadership Challenge.

• Modeling the way,
• Inspiring a shared vision,
• Challenging the process,
• Enabling others to act,
• and Engaging the heart

These competencies require careful ethical thinking, with credibility at the core. They also need perspective and legacy to evolve. The success of this model was determined by indicators which Kouzes, and Posner studied and analyzed. Kouzes and Posner’s findings are revealing. In institutions with robust and credible leadership, they observed:

• employee organizational pride,
• an increasingly poignant sense of team spirit,
• identification with consistent personal values,
• an attachment and loyalty to the organization,
• the widened understanding and identification with the overall structure,
• and process of the collective entity, regardless of the member’s status.

All of these characteristics lead to more ethical and also productive organizations.

While effective leadership built upon credibility has concrete and productive outcomes, some indicators speak to the leadership struggles that might result from honesty and practical visionary thinking. Kouzes and Posner identified five categories in their research and studies.

• Low credibility usually produces situations where people can not be trusted to do their job.
• When credibility is missing, people become increasingly motivated by the most tangible of outcomes–money or the desire to vacate the situation as fast as possible.
• A lack of credibility can also lead to increased severe thinking about “moving on,” usually coupled with conversations that are artificially good but are merely covering an adverse current of private discussion that is not productive or good.
• Kouzes and Posner argue that institutions with low leadership credibility convey diminished levels of support and appreciation for those who are part of the organization, thus causing greater mistrust and indifference on the part of those being led.
• If credibility is not addressed through the lens of perspective and legacy, problems will emerge and destroy the leader’s ability in any other categories or areas. Credibility is significant.

May’s Suggestions for Organizations

Participation

Transparency

Accountability

How do we create an organization that is ethically based on the essential values discussed so far? Steve May (2006) writes in Case Studies in Organizational Communication that leaders and organizations should base their moral evaluations on a six-part strategy to set expectations for better ethical evaluation.

• May argues that people must work to align their personal and professional aspirations and behaviors to reach clarity of values for the individual and organization.
• Organizations should be encouraged to create honest, open, transparent dialogue or communication.
• Ethical values in an institution should work towards a system-wide decision-making model that encourages the participation of as many individuals as possible.
• All policies, regulations, and guidelines should be straightforward and transparent; particular emphasis should be given to fostering clear understanding for all without hidden loopholes or discrepancies.
• Rules, regulations, and guidelines should create and institute a form of accountability for those who are involved.
• People must be courageous in seeking true wisdom and trained to think critically and carefully to identify and resolve ethical problems that will emerge.

Success found in these critical components will move an organization towards proper ethics and tremendous overall success in the long term. All of this works when an atmosphere of trust and thoughtfulness is encouraged by those in charge.

Shaping a Proper Attitude

What if these strategies fail? One of the widely discussed ethical obstacles is the problem of poor attitude which can quickly permeate an institution. John Maxwell (2007) writes in Ultimate Leadership that we need to be willing to evaluate our self-perceptions and the situations in which we might be confronted by being honest about our and others’ attitudes. The importance of being self-aware of our attitude and the situations that foster others’ positive attitudes is essential to determining effective, ethical leadership.

Maxwell analyzed why employers dismissed their employees. Looking at the data, Maxwell hypothesizes that the underlying reason for these problems stemmed from a poor attitudinal, institutional environment. Poor attitudes are often associated with the employee but may be resolved with a greater awareness of what causes such outcomes by leaders. Maxwell asserts that helping others create a more positive or productive attitude represents a leader’s understanding of the perspective, legacy, and credibility factors. Maxwell’s research is close to accurate; 85% of institutional problems, which leads to ineffective workplace outcomes or, in more severe cases, eventual “firings,” can be tied to a lack of productive attitude that more insightful ethical leadership practices could have offset.

Why employees are dismissed:

• Incompetence 30%,
• Inability to get along with others 17%,
• Negative attitude 10%,
• Lack of motivation 7%,
• Refusal to follow instructions 7%

(Maxwell, 1998, p. 347)

The percentages above may not reveal a complete picture of institutional characteristics ultimately at play; the importance of keeping a positive attitude and creating an atmosphere where this approach is contagious can not be ignored. This assessment can be seen in the quotation listed above. Leadership requires that the leader see reality and be capable and willing to “adjust the sails” of the group or institution.

This “adjustment” often comes from the leader’s attitude. Maxwell argues that leaders must carefully gauge their predisposition and, be honest about where they are and what they are ultimately about. This might require an adjustment of perception or feelings. If an “adjustment” is needed, the leader should focus on change through the following four steps.

• The leader must identify the problem feelings or perceptions that are apparent within one’s self and/or the institution.
• The leader must consciously identify the behaviors that create the poor attitude.
• It is the leader’s responsibility to identify the thinking or contextual circumstances that have produced such behaviors.
• The leader is required to identify “better” thinking and then confirm this new path in a public commitment.

A leader’s commitment to “adjusting the sails” is not always easy. It requires self-reflection and self-responsible to move forward with change despite potential obstacles.

Rachels’ Theory of “Morality Without Hubris”

The fact is that ethical leadership is complex and requires a great deal from the leader. What is most frustrating is not having a vision for the required improvement. The organization or the leader does not simply determine the complexity behind this. The factors of leadership strain are increasing worldwide due to external moral issues or issues that do not simply focus on one organization and its internal workings. Such questions abound:

• How will we adequately address the potentially harmful outcomes of global issues that impact all work in any industry?
• How will we address the increasing strain of societal issues that create more difficult pressure on both individuals and institutions that complicate value determined necessary?

Rachels’ theory of Morality without Hubris (MWH) and the following theories can address this issue more precisely and help us realign our thoughts and strategies amid this potential strain. Dr. James Rachels (2019), The Element of Moral Philosophy, wrote a series of articles and texts on thinking critically while weighing the factors at the heart of critical moral philosophical viewpoints.

What I like about his work is that it applies directly to “real-life” scenarios. His work has a sense of sincerity in the belief that employing wisdom and making the right decision is much more complicated than it might initially seem but incredibly worthwhile if we focus on essential components. He highlights many key ethical components and ends his work with a theoretical proposal for good thinkers named the MWH strategy. Rachels suggests that one way to begin to further this conversation can be found in his practical approach. His theory of morality without hubris offers a good starting point.

In any leadership position, effective decision-making must include what Rachels believes to be the crucial element of success; the ability to look beyond oneself. Many years ago, I gave a graduation speech that echoed this viewpoint. I titled it “Getting Out of Our Way.” In it, I argued that our society can do amazing things, but often what keeps us from making better decisions is our inability to put aside aggrandizement, arrogance, and greed. We often cultivate these attributes when we focus on our needs and perspective without adequately giving severe consideration to others or our greater society. Rachels addresses this problem by arguing that the place to start with good, ethical thinking lies in the ability to “put ourselves more aside” and concentrate on five factors to institute the concept of “morality without hubris”.

• We must be willing to cultivate and follow through on a viewpoint more sensitive to human nature. We must find a way to define and connect with those essential elements or ingredients that hold us together as people.
• To be better thinkers, we must be willing to see ourselves in the context of greater values or concepts that transcend our perceptions or existence. To be truly humble, in the sense that Rachel argues, demands that we see ourselves as equals with others and to be motivated by this belief so that it dictates our daily decision-making. This requires respect for others, motivated by understanding the needs of others, and the conviction that our decisions will produce results that are in the best interest of all.
• We must focus on impartiality. This is best defined in terms of justice. A better thinker understands that true justice is upheld by the decisions and actions of those committed to leading through humility. Using better critical thinking skills by balancing reason and emotion, one can move towards a more effective model of good decision-making by becoming more aware of what motivates people.
• Careful thinkers must consider essential social elements of living as the most important. Issues of life and death, severe consequences of physical and emotional violence, and injustice must be addressed. All policies and/or decisions must not violate moral principles, have detrimental effects, or force individuals into compromising situations.
• Rachels incorporates into his theory “morality with hubris,” an element of Nel Noddings’ care philosophy (Stanford University), which leaders must ponder. He argues that good leaders who make solid decisions develop and enhance the natural inclination of all to care on a local, societal, and global level and act per proper moral principles.

Find freedom Gain the awareness of how to be a “responsible moral agent” through the virtues of fair treatment and respect for all promote the interest of all Treat people as they deserve to be treated

John Rawls’ Theory of Justice as Fairness

These factors produce productive results that can help us move along in solving problems. According to Rachels, when we consider these factors, we will find the freedom that overcomes obvious determined factors, regardless of our industry, position, or personal issues.

By consciously weighing essential elements, we become empowered in knowing that we are moving forward with decisions that far outweigh our inclinations or perceptions.

We gain greater awareness of how to become a “responsible moral agent” found in the values of fair treatment and respect for ourselves and others.

Creating greater awareness is the first step to changing ourselves and others. This is a never-ending process and therefore is not based on a result in and of itself. Instead, we must see the gained awareness as correlated with the enhancement of proper thinking skills in cultivating true wisdom.

In the process of greater awareness, experience, and the willingness to learn and be open with others, we also become more in tune with the promotion of the interest of all, whether that is focused on our families, our communities, our company, our industry, our society or our world.

This concept leads us to the underlying equation that is not tied to the “golden rule” but more geared towards true justice or the type of justice discussed by John Rawls of Harvard University. This approach to justice and good leadership dictates that individuals treat others as they deserve to be treated, according to their unique needs, and not merely from the standpoint of reciprocity or as we would like to be treated.

Fairness is not just about equality but the ability to tailor needs with an understanding and expectation of what people deserve. This complexity is a much more complex concept to incorporate into effective leadership as it requires authentic knowledge of those around you and the willingness, at times, to move beyond the simple “fairness as equal” interpretation that many supervisors or leaders employ. Often, in all reality, such an approach is the easiest way to avoid conflict as individuals can be interpreted to have been treated fairly by the equal process.

The Importance of Diminishing Your Ego

Rachels’ assessments have significantly impacted how morality, decision-making, and fairness have been studied and interpreted. Listen to Bob Davids discuss decreasing one’s ego to meet daunting ethical goals. Notice what Davids describes as the essential characteristics or behaviors we need to exhibit to avoid falling into the trap of becoming more and more self-centered.

The Theory of “Moral Sainthood”

A commitment to attitude change is directly connected to reducing arrogance or hubris, as we discussed before, and our ability to be honest with ourselves—failures and successes. Often in discussing morality, leadership, and the process of sound decision-making, we can be galvanized by our values and our plan we know is essential to a more ethical outcome. We can also be “defeated” in our inability to adequately use our plans or live up to “high expectations.” Though we must take the suggestions offered to heart, we must remember that we will not always effectively carry them out. As a result, we might interpret our inability as a failure and decide that moral decision-making theories, like Rachels’ theory, might be impractical or ineffective. Nothing could be more untrue.

Susan Wolf, a professor of philosophy at the University of North Carolina Chapel Hill, argues that the perspective of failure should not determine our assessment of a dilemma’s moral success. Instead, Wolf writes that society often misinterprets or misjudges the success of such theories as unrealistic because leaders don’t understand the outcomes, judge their successes and failures on intangible indicators, or don’t return immediate results. Instead, imperfection, or the failure to see tangible outcomes or gain instant results, should not determine the assessment of a decision. Wolf argues that we can not judge the morality of decisions based on the perceived result alone because we live in an imperfect world of imperfect people. We are imperfect. Wolf says that we must be willing to fully understand this societal thinking pattern she labels “moral sainthood” or the concept that people who are moral or good decision-makers never make mistakes. The result of all “good” moral decisions does not always result in a productive, transparent, and profitable outcome.

The “moral sainthood” theory states that we must accept and understand that “good” decision-making and leadership require the acceptance of imperfection. In that imperfection, we find the genuine concept of “moral sainthood”; namely, understanding of moral sainthood can be found in the essence of imperfection. Wolf believes that our effectiveness is in adhering to the beliefs of moral ideals and in our failure to attain these moral ideals. Knowing this, we are forced to focus on others and see circumstances and situations for what they are. In short, the concept of the leadership ideal as a “Mother Theresa” figure or perfect “moral saint” is not healthy nor helpful.

Though Mother Theresa was an amazing individual, the untrue concept of success yields disturbing comparative disappointment in many people’s views of their own lives and situation; in this case, Wolf writes, the extraordinary feats of superb individuals and their legacy limits the drive for success of individuals, community, and society. This thinking can leave people feeling powerless and encourage an atmosphere of apathy or indifference; in some cases, this haplessness leads to a lack of responsibility in a world (or apathy). Wolf advocates for a more evident ideal of “moral sainthood.” She writes in her Freedom within Reason that we must find a way to be more realistic about our expectations and use these failures to prompt more significant ethical change.

To do this effectively, honestly, and with the genuineness demanded by proper leadership, we must be seen in the light of our failures and successes as authentic leaders. In those successes and failures, we become devoted to the welfare of others, as they can relate to us. Leaders must reevaluate the definition of proper leadership and decision-making to reflect greater interest than one person or a collective group. In imperfection, we make ourselves vulnerable, and it is through vulnerability that we gain trust and a proper understanding of authentic leadership and sound decision-making. Thus, Wolf’s “moral sainthood” concept incorporates the leader’s commitment to genuine and full-time devotion to this renewed definition. She writes, the moral point of view, we might say, is the point of view one takes up insofar as one takes the recognition of that fact that one is just one person among others–equally honest and deserving of the good things in life as a fact with practical consequences—seen in actions and deliberations (Wolfe, 1982).   Perhaps, as Wolf suggests, it is in genuine awareness of our daily struggle with our imperfections and the development of authentic connections with others that we become most effective in helping ourselves and others to move forward.

In considering the value of Wolf’s theory, we must address the fact that ethical progress and change require us to overcome significant obstacles. To face these obstacles, it is essential to consider the mindset that a strong thinker must have to move on. Aimee Mullins discusses in her powerful story how we can turn obstacles into opportunities for success. She reminds us that adversity prompts us to accomplish incredible things—even when that success is not easily attained.

Creating an Ethical Atmosphere in Any Situation

In thinking through the value of overcoming obstacles and acknowledging that instituting true beneficial, ethical change may be slow, it is also imperative to understand how to compromise when called upon. Combining Rachels’ concept of “morality without hubris,” Maxwell’s conception of “attitude adjustment,” and Wolf’s “authentic conception of moral sainthood,” we can then turn our attention to Derek Parfit’s suggestion of how to best focus on moving the progressive movement forward when the goal has not been grasped.

One essential element of good critical thinking must include finding a “middle ground” between factions or interests. Though it is clear that no decision will be equal in its result or outcome, Parfit’s statements on practical compromise help us understand how to weigh realistic outcomes with theoretical guiding moral principles or ideals. Parfit (1986) argues Reasons and Persons that the ultimate compromise is when thinkers must consider the compromise between desires and interests and those of others or higher ideals. Contrary to other theories that advocate that one must adopt the concept of higher ideals and adhere to them no matter what, Parfit writes that such models are too simplistic and self-defeating. He believes that our very nature, both biologically and psychologically, embeds us with the desire to advocate in some form or fashion for ourselves. This, he argues, is both good and bad.

A skillful thinker must learn to weigh the good elements of what he calls “self-interest” rather than “selfishness” against the concept of higher ideals, values, or virtues. What is most effective is the ability of everyone, including leaders, to weigh the inclination of self-interest against the conceptualization of others’ needs while balancing an element of objective Truth or principle. It is in the compromise of the subjective and objective that Truth can be found, and in that Truth, we can continue to uphold the values required over a long period. What should be most important to any moral leader is the understanding that the pursuit of Truth links itself with wisdom. Wisdom, for Parfit, incorporates the diligent and continual evaluation of compromise found in subjective and objective thinking and the willingness to adjust the process to attain the desired result. Thus, leaders must be able to take a situation and weigh its moral consequences for many different interests, including the interests of themselves.

This leads us to practical suggestions to create the proper atmosphere of expectation and progress with the people we contact.

• First, thinkers must be conscious of others’ feelings and consider their motivations and benefits. This is easier said than done. With limited knowledge, we must continually evaluate people and their interests while determining what is central to who they are and what they believe to be true.
• Second, we must be able to compare and contrast viewpoints clearly and rank various arguments and perspectives in relative terms. True critical thinkers must be able to think comprehensively and weigh the arguments being made carefully.
• Third, one must be “real” with those who are involved. This is not a factor that is focused on practice so that one can “pretend” to be concerned or “pretend” to listen; instead, it requires a leader to be devoted to actually spending the time to cultivate relationships so that trust can be reinforced and lines of communication can be opened for constructive feedback and even criticism.
• Last, to create greater moral awareness and, therefore, more constructive and good outcomes from solid decision-making, a thinker must create an ideal or vision of leadership. Progress is linked directly with “betterment” or moral improvement. Each one of these factors discussed above is critical to creating greater moral awareness, representing the beginning of a conversation that improves the personal, institutional, and societal situations that are so troubling.

Taking the awareness factors to heart, a good thinker can then evaluate how to accomplish the goal best to improve the ethical climate of their organization or circumstances. At the root of this is sound judgment. Sound judgment culminates in the following characteristics listed above:

• the acknowledgment of assumptions,
• the dissection of all moral points,
• balancing of emotion and reason,
• the weighing constructively of others’ interests and
• the willingness on the part of the leader to act on his or her decisions.

All five are the basis of sound ethical judgments.

A couple of deductions can be made about these five suggestions that I think make a difference. They all demand that the leader scrutinizes as many options as possible and balance logic with emotion. There are times to consider emotion’s vital contribution to a particular decision-making process, but allowing emotion, like anger, to dominate or control a decision-making situation is dangerous. Emotion can blind one from essential factual knowledge and detract from the task. Second, there is also the issue of prejudice or bias. Thinkers need to be conscious of the individuals involved in the process. Leaders must attempt to decrease their biases and prejudices and focus on the well-being of all involved. Though it is impossible to do this with complete assuredness, it is a goal that is essential to work towards as it guides leaders to avoid arbitrary and stereotypical assessments.

The last suggestion focuses on sound decision-making and the concept of action. Too often, leaders come up with grand plans or ideas but fail in their ability to carry out the plans they have envisioned. Vision must produce action. This can be self-defeating and demonstrate poor judgment or an inability to accomplish goals. This is particularly true of moral situations. Too many people take the easy way out; they make decisions that they know may not be moral or constructive, as they are swayed by decisions that they think will require less action and/or effort. They opt for the decision of less resistance.

As a leader, one must realize that every decision has moral implications. Actions taken and actions not taken demonstrate what values or virtues one believes are essential. It is an often overlooked important aspect of building solid ethical thinking skills.

In conclusion, as we assess our leadership strengths and weaknesses, it is crucial to tailor leadership theories to “real life” learning and the leadership scenarios one is confronted with in everyday situations. When considering these theories and perspectives, we evaluate the importance of humbleness, authenticity, compromise, and legacy or influence in the context of the essential element that holds all of this together—namely, the character trait of wisdom. Wisdom is not the accumulation of information, as information alone does not equal good decision-making or minimize all tendencies to make a mistake. All of these suggestions have the underlying theme that true wisdom is the core when determining how to uphold best these values, which are important to successful thinking. As a leader in a democratic society where we all shoulder this responsibility, we must acknowledge and refine good critical thinking skills while recommitting ourselves to taking more time to think about important decisions. This will allow us to weigh the possible outcomes of such decisions adequately. We can do this by being more aware of how we learn, evaluating the importance of objective and subjective thinking, and more effectively employing reason and emotion in a balanced framework to further our genuine understanding of ourselves and the world around us. Taking all of these suggestions, whether from the more theoretical or practical realm, a thinker can construct a better ethical viewpoint that incorporates consideration for community and family and the various institutions or workplaces in which they live.

Conley, C. (2010, February). Measuring what makes life worthwhile. Retrieved from https://www.ted.com/talks/chip_conley_measuring_what_makes_life_worthwhile?language=en

Gokadze, I. (2013, August 28). Martin Luther King, Jr. I Have A Dream Speech. Retrieved from https://www.youtube.com/watch?v=3vDWWy4CMhE

Kouzes, J. M., & Posner, B. Z. (1987).  The Leadership Challenge . San Francisco: Jossey-Bass.

Maxwell, J. C. (1998). Ultimate Leadership.

Maxwell, J. C. (2001). The winning attitude, Developing the leaders around you; Becoming a person of influence. Nashville, TN: T. Nelson.

Maxwell, J. Dornan, J. (2006) Becoming a person of influence. New York, NY: HarperCollins.

May, S. (2006). Case studies in organizational communication. California: Sage.

Mullins, A. (2009, October). The opportunity of adversity. Retrieved from https://www.ted.com/talks/aimee_mullins_the_opportunity_of_adversity?language=en

Parfit, D. (1986). Reasons and Persons. Oxford, UK: Oxford University Press

Rachels, S., & Rachels, J. (2019).  The elements of moral philosophy . New York, NY: McGraw-Hill Education.

Rawls, J. (2005). A theory of justice . Cambridge, MA: Belknap Press.

Reichheld, F. F. (2008).  Loyalty rules!: How today’s leaders build lasting relationships . Boston: Harvard Business School.

Rothman, J. (2017, June 19). What Is Leadership, Anyway? Retrieved from https://www.newyorker.com/magazine/2016/02/29/our-dangerous-leadership-obsession

Talks, T. (2012, April 10). The rarest commodity is leadership without ego: Bob Davids at TEDxESCP. Retrieved from https://www.youtube.com/watch?v=UQrPVmcgJJk

Wolf, S. (1982, August). Moral Saints. The Journal of Philosophy . 79(8). 419-439

Chapter 6--Determining Effective Leadership Copyright © 2018 by Christopher Brooks is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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The Pillars of Effective Decision-Making in Leadership

Explore the five key decision-making focuses for effective leadership. enhance your leadership skills today..

As a leader, the decisions you make can shape the trajectory of your organization. Effective decision-making is a critical skill that separates successful leaders from the rest. However, the process of decision-making can be complex and challenging. In this article, we will explore the pillars of effective decision-making in leadership, providing you with valuable insights and strategies to enhance your decision-making abilities.

The Importance of Decision Making in Leadership

Decision-making is an integral part of leadership. The choices you make as a leader can have a profound impact on your team, organization, and even beyond. Research conducted by Bain & Co. has highlighted a strong correlation between effective decision-making and financial performance, emphasizing the significance of this skill in driving organizational success.

The Five Pillars of Effective Decision Making

To make informed and effective decisions, leaders should consider five key pillars of decision-making. These pillars provide a framework for approaching decisions in a thoughtful and comprehensive manner.

1. Information: Gathering the Right Data

Before making any decision, it is crucial to gather the appropriate amount of data and information. Taking the time to look, listen, and learn will vary depending on the potential impact of the decision. Effective leaders understand the importance of making decisions based on sound information and avoid hasty judgments.

2. Humility: Embracing Different Perspectives

A strong leader approaches decision-making with humility. Recognizing that they may not be the most knowledgeable person in the room on every topic, they seek input from others. Consulting with a diverse group of "counselors" allows leaders to gain insights, challenge their own biases, and make more well-rounded decisions.

"Having a narrow-minded approach to decision-making can limit your growth as a leader, and you may be missing out on a decision that could actually benefit you and the company." - Jennifer Lee Magas

3. Perspective: Considering Multiple Factors

Each decision has multiple layers and contexts that should be taken into account. Effective leaders seek to understand the emotional, historical, and cultural aspects of the issue at hand. Considering these factors enables leaders to make decisions that align with the overall framework and values of the organization.

4. Culture: Fostering a Decision-Making Environment

Creating a culture that promotes good decision-making is essential in today's rapidly changing world. A top-down decision-making process is no longer effective. Instead, leaders should encourage horizontal thinking within their teams, valuing diverse perspectives and fostering a commitment to lifelong learning. This creates an environment where individuals feel empowered to contribute to the decision-making process.

5. Plan: Adaptable and Feedback-Oriented

Having a well-defined plan that can adapt to changing circumstances is crucial for effective decision-making. A Lean Canvas plan, for example, provides a flexible framework that allows leaders to adjust their strategies based on new information or realities. Incorporating viable feedback loops ensures that decisions remain on track and aligned with desired outcomes.

"Remember, you don't always have to be the expert. Others on your team can serve as point people, allowing you and those you lead to benefit from their experience and wisdom." - Anonymous Colleague

Vision and Strategic Thinking

One of the key focuses in decision-making for leaders is aligning decisions with the overarching vision and strategy of the organization. Leaders need to possess a clear vision and strategic thinking abilities. This involves setting long-term goals, outlining a roadmap to achieve those goals, and effectively communicating the vision to the team.

Analytical Thinking

Another crucial aspect of decision-making in leadership is analytical thinking. Strong leaders have the ability to analyze complex situations, gather relevant information, and assess potential outcomes. Data-driven decision-making allows leaders to make informed choices, minimizing biases and personal preferences.

Collaboration and Empathy

Decision-making in leadership involves considering the perspectives and needs of various stakeholders. Leaders should actively involve team members, encourage diverse viewpoints, and foster a collaborative environment. Empathy plays a crucial role in understanding the impact of decisions on individuals and promoting a culture of inclusivity.

Adaptability and Risk Management

Effective leaders must be adaptable and responsive to changing circumstances. They should anticipate potential challenges, evaluate risks, and make decisions that mitigate or manage those risks. Being open to feedback and learning from mistakes is essential for continuous improvement.

Ethical and Values-Based Decision-Making

Leaders must make decisions that align with ethical principles and core values. Ethical decision-making involves considering the impact of choices on various stakeholders, demonstrating integrity, and upholding moral standards. Prioritizing ethical decision-making builds trust, credibility, and loyalty among teams and stakeholders.

Key Steps in Decision Making

Incorporating a systematic process or checklist can strengthen the decision-making skills of leaders. Renowned financial guru Dave Ramsey suggests several key steps to enhance decision-making:

• Set a deadline : Avoid procrastination by setting self-imposed deadlines. Having a timeline helps maintain focus and prevents indecision. ‍
• Gather many options : Explore a wide range of options before making a decision. The more options you consider, the more likely you are to find creative solutions and remove fear from the decision-making process. ‍
• Determine the worst-case scenario : Emotionally digesting the worst-case scenario allows for confident decision-making. By understanding the potential risks and consequences, leaders can weigh their choices more effectively. ‍
• Follow your guiding values : Having a clear sense of ethics and values simplifies decision-making. When decisions align with your guiding principles, choices become more straightforward and consistent. ‍
• Understand that inaction is an option : Sometimes, the best decision is not to decide. Recognizing that inaction is a valid choice allows leaders to be intentional in their decision-making process. ‍

Overcoming Roadblocks in Decision Making

Decision-making can be hindered by various challenges and obstacles. Fear of making the wrong choice, concerns about popularity, and the inability to decide altogether are common roadblocks faced by leaders. Overcoming these roadblocks is essential to effective decision-making.

"Fear is the ultimate cause of paralysis. Just like a squirrel that can't decide what it wants to do, fear will get you killed," says Dave Ramsey. While fear may be present, leaders must not allow it to paralyze their decision-making. Instead, they should embrace the courage to make choices and take calculated risks.

On the other hand, overconfidence and disregarding alternative opinions can also hinder effective decision-making. Leaders who fail to seek input from others may stifle innovation and creativity within their teams. Collaboration and diverse perspectives are essential for making well-rounded decisions.

Confirmation bias is another obstacle that leaders must overcome. By seeking only information that confirms their pre-existing beliefs, leaders may ignore valuable insights and alternative viewpoints. It is crucial to remain open-minded and consider diverse opinions when making decisions.

"We shouldn't need a vote. We want the wisdom of the group to lead us to the right path. While the decision-making process does culminate in a decision, it's the art of co-thinking and synthesizing together that yields the most powerful results." - Jim Hauden ‍

Trust Your Intuition

In the end, effective decision-making is a combination of knowledge, intuition, and a willingness to take calculated risks. Leaders must develop insight and the ability to cut through the noise and identify the crux of the matter. This allows leaders to make strategic and tactical decisions that drive their organizations forward.

Empathy also plays a significant role in decision-making. Leaders who genuinely care about the impact of their decisions can make choices that have a positive and lasting effect. By considering the well-being and needs of stakeholders, leaders can forge stronger relationships and create a positive organizational culture.

In conclusion, decision-making is an essential skill for leaders. By embracing the five pillars of effective decision-making and integrating key steps into their process, leaders can enhance their abilities to make informed choices. Overcoming roadblocks and trusting intuition further strengthens decision-making skills. With these foundations in place, leaders can navigate the challenges of decision-making and steer their organizations towards success.