Essay on Importance of Developing Critical Thinking Skills for Effective Leadership

Published: 2021/12/16
Number of words: 988


By using critical thinking, leaderships can see how their decisions affect the entire business, ensuring alignment with corporate goals and accountability for results. Worldwide and geopolitical volatility, rapid technological advancement, unusual fiscal restrictions, an increasing knowledge to sort through, and the spread of new corporate business concepts are all contributing to the “new normal” competitive environment. Leadership mentalities that have worked in the past are unlikely to work in the future. Many recent research and surveys have shown that critical thinking is essential for successful leadership in the twenty-first century (Jiang et al., 2018). Despite this, research suggests that many current and future leaders lack this quality. Leadership is being upended and redefined due to a lack of competency.


Ensures Independent thinking

Importantly, critical thinking is the capacity to reason clearly and logically and the capability to engage in reflective and autonomous thought. The ability to grasp the rational connections between concepts, discern the relevance and significance of arguments, discover contradictions or errors in reasoning, and make appropriate choices are characteristics of a leader with critical thinking abilities. Indeed you have seen leaders who are competent in coming up with the correct solution yet who make dubious choices nevertheless. Over the years, several leaders who had excellent interpersonal skills could empower others around them and were adept at putting ideas into action (Jiang et al., 2018). They were unable to think through the ramifications of possible scenarios, could not correctly assess the choices they were presented with, or could not identify a fault in someone else’s reasoning, and as a result, they often made mistakes that demonstrated their lack of critical thinking abilities.

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Proper Information Gathering and Evaluation

Good critical thinking requires the ability to collect knowledge and evaluate. In what ways are they essential to the circumstances, and which piece of knowledge will have the most impact on the matter at hand? What is the likelihood of one outcome occurring over another? Which assumptions can you put your faith in, and which ones do you need to be skeptical of? The answers to these questions are crucial in helping individuals improve their judgment and make well-informed choices. Because of the rapid changes and intense competition that characterize today’s financial world, the consequences of making bad decisions are more severe than ever. Leaders must make choices regarding the strategic direction of their company, its competitive posture, and the appropriate use of available resources. As business problems evolve and become more complex, executives can no longer depend on what has worked in the past to guide their decisions (Reyes-Chua et al., 2021). Consequently, individuals must evaluate alternatives and possible repercussions quickly and adequately adapt to new knowledge to make consistently sound choices. When organizations make bad choices, they risk damaging their image and missing out on essential possibilities.

Ability to conceptualize, Synthesize and Conceptualize Information

To be a successful leader, one must possess critical thinking skills, which are more essential in today’s constantly changing and increasingly complicated corporate world. In a world where things are constantly changing, one needs robust tools to create a long-lasting company. It is not enough to have had previous success in addressing a problem to ensure success in the future since several variables have changed. Organizations use assessments to test a leader’s capacity to comprehend Information and synthesize it to reach the appropriate conclusion, regardless of whether they are used for selecting or development purposes (Reyes-Chua et al., 2021). People can assess how an individual processes information, chooses the essential aspects and makes the right decision continuously and across various settings using a collection of tools, such as intelligence tests, case analysis, managerial simulations, and behavioral interview questions, among others. And it is a critical characteristic that may transform a mediocre leader into an outstanding one.

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Ability to be Inquisitive

Leaders should have the ability to be inquisitive in their thoughts and actions. Critical thinkers are curious, and they want to understand both the what and the why of every idea they encounter (Nappi, 2017). For instance, when the financial markets crashed in 2008, people realized they needed to do something about it. A crisis may bring out the best in people because it pushes them to examine how and why they got themselves into difficulty in the first place.

Managing Ambiguity

An additional element of critical thinking that is important for today’s leaders is dealing with uncertainty when it arises or managing ambiguity. Because of the rapidity with which business operates and the intertwining of global elements and complicated supply chains, it is impossible to predict all of the variables. Because of this, leaders must get familiar with the concept of working in an environment whereby the change is continuous and fast decision-making is needed (Nappi, 2017).


Critical thinking is the capacity to think clearly and logically and the ability to engage in reflective and autonomous thought. The ability to grasp the rational connections between concepts, discern the relevance and significance of arguments, discover contradictions or errors in reasoning, and make appropriate choices are characteristics of a leader with critical thinking abilities. One thing is evident in a world of increasing uncertainty: leadership needs keen critical thinkers who can assess a situation, see opportunities where some may not, and grab chances via quick decision-making to survive.


Jiang, J., Gao, A., & Yang, B. (2018). Employees’ critical thinking, leaders’ inspirational motivation, and voice behavior. Journal of Personnel Psychology.

Nappi, J. S. (2017). The importance of questioning in developing critical thinking skills. Delta Kappa Gamma Bulletin84(1), 30.

Reyes-Chua, E., Navigar, N., Campaña, M. J., Ymana, R., Ventayen, R. J. M., & Ymana, I. C. (2021). Reflective Critical Thinking Skills of Student Leaders in Higher Education Institutions for Development. WSEAS Transactions on Environment and Development17.

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