Here is an excerpt from an article written by Helen Lee Bouygues for Harvard Business Review and the HBR Blog Network. To read the complete article, check out the wealth of free resources, obtain subscription information, and receive HBR email alerts, please click here.
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A few years ago, a CEO assured me that his company was the market leader. “Clients will not leave for competitors,” he added. “It costs too much for them to switch.” Within weeks, the manufacturing giant Procter & Gamble elected not to renew its contract with the firm. The CEO was shocked — but he shouldn’t have been.
For more than 20 years, I’ve helped struggling organizations. Sometimes they reach out because they have been mismanaged. Sometimes they have not stayed in front of changing technologies. In a few cases, members of the senior team were simply negligent. But in my experience, these organizational problems shared a root cause: A lack of critical thinking.
Too many business leaders are simply not reasoning through pressing issues, taking the time to evaluate a topic from all sides. Leaders often jump to the first conclusion, whatever the evidence. Even worse, C-suite leaders will just choose the evidence that supports their prior beliefs. A lack of metacognition — or thinking about thinking — is also a major driver, making people simply overconfident.
The good news is that critical thinking is a learned skill. To help people get better at it, I recently started the nonprofit Reboot Foundation. Based on my personal experience as well some of the work of our researchers, I’ve pulled together three simple things that you can do to improve your critical thinking skills:
- Question assumptions
- Reason through logic
- Diversify thought
Now, you might be thinking, “I do that already.” And you probably do, but just not as deliberately and thoroughly as you could. Cultivating these three key habits of mind go a long way in helping you become better at an increasingly desired skill in the job market.
Question assumptions
When I work to turn around an organization, I’ll typically start by questioning the firm’s assumptions. I once visited dozens of stores of a retail chain, posing as a shopper. I soon discovered that the company had presumed that its customers had far more disposable income than they really had. This erroneous belief made the company overprice its clothing. They would have made millions more each year if they had sold lower-priced shirts and pants.
Of course, it’s hard to question everything. Imagine going through your day asking yourself: Is the sky really blue? What if the person next to me isn’t my colleague but her twin sister? How do I really know that the economy won’t implode tomorrow?
The first step in questioning assumptions, then, is figuring out when to question assumptions. Turns out, a questioning approach is particularly helpful when the stakes are high.
So if you are in a discussion about long-term company strategy upon which years of effort and expense will be based, be sure to ask basic questions about your beliefs: How do you know that business will increase? What does the research say about your expectations about the future of the market? Have you taken time to step into the figurative shoes of your customers as a “secret shopper”?
Another way to question your assumptions is to consider alternatives. You might ask: What if our clients changed? What if our suppliers went out of business? These sorts of questions help you gain new and important perspectives that help hone your thinking.
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Here is a direct link to the complete article.
Helen Lee Bouygues is the president of the Paris-based Reboot Foundation. A former partner at McKinsey & Company, she has served as interim CEO, CFO, or COO for more than one dozen companies.