Archivo de la etiqueta: Decision making

The Thinking Skills That Will Set You Apart as a Leader

According to my experience, organizations tend to do very stupid things; collectivelly they are less intelligent than most of the individuals in them. Another observation is that organizations tend to reflect the virtues and defects of their leaders.

The conclussion is clear: people tend to work without thinking much, and the responsibility lies on their leaders. Are they dumb? No, or not more than the average. In fact, they usually are more intelligent than normal employees. And they are experts in their field. But they often lack some critical thinking skills that are much needed in VUCA environments. And these skills are never tought in the education system, nor in companies.

Only a few times I’ve had the chance to train managers on thinking and decision making skills. Am I the only one who realizes that there’s a need to improve the thought process of leaders? Their ego makes them think that they are already smart enough. So I was very relieved to find this very interesting article at Harvard Business Review. Here’s a summary:

What does it mean to add value? Adding value arises not just from solving a problem, but from solving the right problem, in ways that no one expected, to arrive at an even better outcome.

These kinds of solutions don’t come from our everyday ways of thinking. They come from expert thinkingcritical thinkingstrategic thinking, and systems thinking—skills that consistently make it on those ubiquitous lists of things leaders at every level have to be really good at to meet the challenges of the future.

If you’re a leader looking for your company to add value for clients and customers, or a manager looking for ways your team can add value, you need to be building these skills in your people. The problem for many leaders and managers, however, is that when we use terms like expert, critical, strategic, or systems thinking, too often we don’t know when to apply or even how to define them.

The authors explore these four distinct types of thinking skills in depth, including what they mean and when they should be used, along with some tips for using AI tools as a thinking partner.

  • Expert thinking is rooted in deep knowledge in a particular field, developed through years of experience, training, and consistent practice. Use it when a situation requires a quick, automatic response based on a well-defined set of rules, or when prior experience and knowledge can offer a clear path forward.
  • Critical thinking pushes you to pause and question assumptions. Instead of reacting quickly, you stop and analyze. Use it when experts disagree on a solution, when traditional approaches fail to solve a problem, or when the symptoms of a problem keep recurring.
  • Strategic thinking is about taking a long-term, high-level perspective, looking beyond the immediate situation. Use it when making big decisions with long-term consequences, thinking about your team’s future, or trying to anticipate how market forces and customer needs might change.
  • Systems thinking is the ability to see the interconnectedness of all the problems at hand. Use it when you need to understand a complex situation or want to identify patterns and relationships within your organization or industry.

It’s just as important to recognize that thinking skills are unlikely to be honed organically, because most of these ways of thinking are not natural. We have to deliberately engage in them. In other words, they’re not what our brains do on autopilot. (And let’s not kid ourselves: Our brains are on autopilot, out of necessity, most of the time. That’s not necessarily a bad thing.)

I encourage you to read the whole article here, and think about it. Also share this article with those you consider will appretiate it. And if you want to improve the thinking skills of your leaders, let’s talk.

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Las inundaciones de Valencia: el precio de las malas decisiones, liderazgo y sistemas organizativos

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Los directivos «cuello de botella» y su impacto en las decisiones de empresa

Covid y ¿racionalidad? en la toma de decisiones estratégicas

Irracionalidad en la toma de decisiones, el día de la marmota y el Covid – Entrevista a Antonio Montero

Algunos hallazgos de psicología que explican por qué tomamos malas decisiones

La estupidez, cómo reconocerla y qué hacer con ella

Descifrando nuestro mayor enemigo: la estupidez

La paradoja de la estupidez

The Painful Reality Of Unteachable Lessons

The broken window fallacy, Troyan horse ideas, and how to avoid making terrible economic decisions

Last month I talked about goals and incentives (La importancia de los incentivos, y cómo el 99% de la gente (incluidos los directivos) no los entiende) and about how people are blind to the failure of their projects (La teoría del caballo muerto o cómo nos negamos a afrontar los problemas). Following those ideas, today I want to talk about the economic myopia of most people.

I don’t know if it is because I studied some economy or because of my experience in many organizations, but I can spot bad economic ideas from a mile, even if they are disguised in good intentions. But I don’t think I’m a genius. What surprises me is how most people accept or buy into «Troyan horse ideas«: sugar-candy proposals that will bring terrible results.

  • Why do politicians always seem to create more economic problems when they intervene to «solve» the previous ones?
  • Why can’t people understand that what seem like good ideas in the short term have bad consequences?
  • Why do we insist in the same recipes that sound attractive but have proven wrong several times in history?
  • Why don’t we understand that everything has pros and cons, and that there are no solutions, only compromises?

There many examples, like printing money, fixing prices, raising taxes and tariffs, taking money from people who work to give it to those who create nothing, doing a bad job for a customer, being dishonest, eating too much and exercicing too little, spending more than you earn, etc.

In this video we learn about the broken window fallacy and how it can help us improve our economic understanding of the world.

Some key questions that you need to ask every time you are proposed an idea:

  • What’s been broken? Why? (Root causes, not symthoms) Have we understood how the problem was created?
  • Is your proposal better or worse than the problem? Is it better or worse than other proposals? What other solutions have worked / not worked in the past? What are the pros and cons of each of them? Are you solving the problem provisionally and making it worse in the long term? What are the evident and not so evident risks?
  • How is this solution going to solve the problem? How are you going to measure its success? Will you change it if it doesn’t work or is counter productive?
  • At what cost? What are the drawbacks? What wealth is the proposal going to destroy? Will it create more problems somewhere else?
  • Who’s paying and who’s benefiting from it? Is it overall good for the society? Even so, is it fair and ethical? Does it break individual rights?
  • Is this idea yours or are you repeating someone else’s without any criticism? Do you have an emotional attachment? What are your biases and blind spots?
  • Are you risking something if your solution doesn’t work? Do you have a personal interest in it? Who will win or lose something if it works and if it doesn’t?

Next time you have or are proposed a «great idea», please use these questions to help other people think rationally.

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