An Introduction to Critical Thinking in Business

Increasing Critical Thinking in the Workplace

The Raw Material of 21st Century Success

Today’s Agenda

The success of your organization depends on the quality of the thinking and the decisions made by everyone in your business.

Everyone thinks, but few think critically

Lots of people work hardBut do they accomplish much?

Meet Jerry, your new salesperson.

Is he…

• Working on the right things?• Asking the right questions?• Making good decisions?

Meet Pam, your new office manager.

Can she separate…

• Facts• Opinions• Assumptions

Meet your new storemanagers.

Will they think about…

• Outcomes?• Consequences?• Effective Implementation?

Critical Thinking DefinedIt is…

Critical Thinking Impacts Business

Schlitz Loses Its Lead

Background: In the 1970s, Schlitz, America’s #2 beer,wanted to compete with Budweiser.

Decision: Head of Schlitz Brewing Company, Robert Uhlein, Jr.,decided to cut costs in the ingredients used in the beer and to speed up the brewing process. The brew time went from 40 days to 15. Barley malt was replaced with corn syrup. A foam stabilizer was replaced with a cheaper version.

Impact: Initial profit was good, but the beer tasted terrible and theingredients tended to bond together and sink to the bottom of the can –looking like mucus. A reviewer described it as “snot-ridden beer.” Schlitz finally recalled 10 million cans of beer. By 1981, they shut down their Milwaukee plant, and the following year they were sold. A Milwaukee mayor compared it to the sinking of the Titanic.

The Beatles Sign With EMIBackground: In December, 1961, Decca Records’ executives Mike Smith and Dick Rowe watched a local rock ‘n’ roll band perform in Liverpool. He invited them to audition on January 1, 1962. The group spent two hours playing 15 different songs. Then they went home and waited for weeks.

Decision: Finally, Rowe told the band’s manager that Decca wasn’t interested. He said: "Not to mince words, Mr. Epstein, but we don’t like your boys’ sound. Groups are out; four-piece groups with guitars particularly are finished.“

Impact: The group, The Beatles, signed with EMI Records, and started a trend back to guitar bands. The rest is history.

Background: In 1981, Universal Studios called Mars and asked permission to use M&Ms in a new film. This was common practice. The director was looking for cross-promotion – he would use M&Ms, and Mars could help promote the movie.

Decision: The Mars brothers said “no.”

Impact: The film was E.T. The M&Ms were needed for a crucial scene: Elliot, the boy who befriended the alien, uses candy to lure E.T. into his house.

Instead, Hershey’s cut a deal to use a new product called Reese’s Pieces. Initial sales had been light. Sales exploded when E.T. became a top-grossing movie. Hershey’s estimated that they would have had to pay $15-20 million for this level of advertising.

Hershey’s Sees the Light

A 21st Century Survival Skill

We’ve seen bad judgment bring down business giants Enron, Lehman Brothers and AIG. Every business needs to focus on making the right decisions in a complex, rapidly changing environment – with incomplete and imperfect information.

Critical thinking is a core survival skill.

A Foundation for Key Management Skills

Identifying and Developing Good Critical Thinkers

How Can You Spot Great Talent?

People often appear similar on the surface.

• Similar resume• Similar communication style• Similar upbeat attitude

But how can you predict who will succeed on the job?

Create Success Profiles Through Assessment

• Assess the critical thinking ability of top performers to create a baseline (e.g., 70th percentile and above)

• Assess jobapplicants and candidates for internal promotion and compare their scores to the baseline

Watson-Glaser™: The Gold Standard for Critical Thinking Assessment

• In use for over 85 years• “Voluminous research”• Measures critical

thinking ability• Predicts success

in professional roles• Development report provides

custom development plan

Watson-Glaser Users

Watson-Glaser Applications

Watson-Glaser RED Model of Critical Thinking

RED Model Defined

Recognize Assumptions Assumptions are statements that are implied to be true in the absence of proof.

Evaluate Arguments Arguments are assertions that are intended to persuade someone to believe or act a certain way.

Draw Conclusions Consists of arriving at conclusions that logically follow from the available evidence.

Recognize Assumptions: the CIA believed• that Cubans would rise up to support the effort• they could successfully overthrow the Cuban government based on past success (Guatemala, 1954)

Evaluate Arguments: Kennedy reviewed the plan with his closest advisors, who supported invasion. When campaigning, he had criticized Eisenhower for not being proactive enough with Cuba, so contrary views were not well represented in the inner circle.

Draw Conclusions: Kennedy ordered the invasion, which was an immediate and costly failure.

Learning: Kennedy changed the way in which he was briefed so that assumptions would be challenged and arguments better evaluated.

RED Model In Action

The Next Generation: Critical Thinking In Schools and

Early Workforce

“Everyone agrees that students learn in college, but whether they learn to think is more controversial.”- Wilbert McKeachie

Do Students Have Sufficient Critical Thinking Skills?

What Employers Say

We Have a Critical Thinking Deficit

It’s Also the #1 Skill of Increasing Importance

Another Survey: Skills “More Important” Now Experienced Workers New Workers

SHRM 2007 Survey

“I'm calling on our nation's governors and state education chiefs to develop standards and assessments that don't simply measure whether students can fill in a bubble on a test, but whether they possess 21st century skills like problem-solving and critical thinking and entrepreneurship and creativity.”

Changing Education Policy

Framework for 21st Century Learning

Critical Thinking Emphasis

Training People to Think BetterIs it possible?

Critical thinking is like any other skill (e.g., becoming a good golfer) – it requires practice

But developing critical thinking is more challenging than behavioral skills (e.g., golf) because you can’t easily “see” it

Yes, But Not Without Effort… and Feedback

“There is substantial evidence to show that critical thinking can be improved, especially when instruction is designed to encourage the transfer of these skills to different situations and different domains.”

Diane Halpern, 2003

Critical Thinking Can Be Learned

Key Areas for Critical Thinking Training

• Separating fact from opinion• Asking the right questions• Evaluating arguments• Dealing with politics and spin• Exploring alternative POV• Coping with contradiction• Reading carefully• Making decisions under

pressure

Assess to Develop Skills and a TrainingIntervention

Trainer Readiness

Are supervisors equipped to evaluate 21st century skills such as critical thinking and adaptability?

Are you currently assessing and developing these foundation skills?

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Manager A Manager B

98%

50%

Take a manager making $60,000 per year whose daily decisions impact his/her productivity. If training can move this person from average to superior, the ROI is: $28,000 annually per manager25 managers/professionals = $720,000 annually$2

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The ROI of Developing Skills

Critical Thinking Drives Professional SuccessLet It Drive Your Business

Questions?TalentLens.com/en/watson

ThinkWatson.com

Contact Suzan Ramsey at 210.339.8455 or Suzan.Ramsey@Pearson.com to schedule a demo of the

Watson-Glaser™ II Critical Thinking Appraisal