critical thinking in business analysis

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Critical Thinking in Business Analysis: Why it Counts

“ Five percent of the people think; Ten percent of the people think they think; and the other eighty-five percent would rather die than think .”  ―  Thomas A. Edison

Business analysts are paid to think. Thinking is a force of habit that defines us and the quality of the decisions we make. If the numbers from Thomas Edison are anything to go by, our ability to think through situations should never be taken for granted.

Critical thinking is an extremely important quality that should be nurtured, refined and actively applied to every decision we make.

What exactly is Critical Thinking?

“Your mind is working at its best when you're being paranoid. You explore every avenue and possibility of your situation at high-speed and with total clarity.”  ―  Banksy ,  Banging Your Head Against a Brick Wall

In simple terms, critical thinking may be defined as " reasonable reflective thinking focused on deciding what to believe or do ". Another definition by the Critical Thinking Community is: "a mode of thinking, about any subject, content, or problem where the thinker improves the quality of his or her thinking by skilfully analyzing, assessing, and reconstructing reality. Critical thinking is self-directed, self-disciplined, self-monitored and self-corrective thinking."

Being critical is like being paranoid – Not taking everything you hear or read at face value. Critical thinking creates opportunities for exhaustive analysis which in turn, leads to well-informed decisions.

Why bother?

We need critical thinking for practically everything we do - academics, work and even in our personal lives. BAs should be able to hold logical debates from the beginning to the end. We are often required to think and speak quickly within a short frame of time. Our work also demands that we hypothesize connections between ideas while thinking on our feet. Thinking the right way the first time, can save a lot of rework down the line. We must be critical of our own ideas and other people’s ideas.

Being critical allows the BA to confirm which requirements are valid.

Don’t take what you hear or read at face value. Weigh up the evidence provided by stakeholders and consider the implications or consequences of their suggestions before making a recommendation. For example, a requirement may sound straightforward until you consider its impact. Will the requirement necessitate the inclusion of an associated requirement? Will allocating such a requirement to the first release affect the project deadline and available resources? Can the inclusion of the requirement be justified? For example, a stakeholder may state in simple terms, “ I need a report on the number of job applications we receive ”. Being critical implies drumming up questions like:

• Why is this report needed?  
• Who will be the recipient of the report and how will it be used?
• Is this report similar to any existing report?
• In what categories should the applications be presented?
• Which locations should the report cover?
• What is the anticipated frequency of use?
• In what format should the report be presented – Graphs or tabular form?

At the end of your analysis, you may discover that:  1) A similar report already exists which can be modified to suit the requirement, 2) The report may not be necessary at all – perhaps what the stakeholder really needs is a single functionality for adding up the total number of applications per month or 3) The frequency of use may imply that the requirement should be assigned a lower priority or even deferred till a later phase.

This hypothetical example of the application of critical thinking shows how a lot of time can be saved from the get-go as opposed to a situation where the analyst just takes the requirements at face value without finding out what the “real” requirements are.

In certain situations, a stakeholder may put forward a requirement that’s not necessarily tied to any business value but rather to their own increased convenience. Being critical allows the BA to distinguish between requirements that add value to the business and those that should be given a lesser priority.

There’s a huge difference between what a user wants and what they need. Being critical means separating “bells and whistles” functionality from the core functionality the system should deliver.

In seeking improvements, it’s also useful to consider if users have a valid justification for why they do things a certain way. You may find that when a person does things a certain way for so long, they may not have a valid reason for retaining these practices or even understand the reasons why these practices were encouraged in the first place. If the reasons for maintaining status quo are unclear and there are visible flaws in a process, there’s no reason not to improve it.

Being critical assists the BA in questioning stakeholder assumptions and concerns

Some assumptions or concerns are valid while others are not. If a stakeholder shares a concern, the onus is on the BA to investigate the concern and ascertain its validity. One of the things the BA may want to find out is if stakeholder concerns are “general” concerns shared by others or if they’re isolated concerns stemming from a single experience one stakeholder had in the past. For example, a stakeholder may state, “ O ur current system is slow – it doesn’t generate reports quickly enough ”. This statement requires further investigation. The BA should in this instance, verify how much data crunching is needed to generate the report, the speed of the network and if other users have encountered the same problem. The user for instance, could have been running a complex report over a poor network connection. Such claims should be investigated critically before recommendations are made.

The key takeaway is to be investigative in your approach; you never know what you may find.

Here's an interesting insight to critical thinking by Stever Robbins

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To Improve Critical Thinking, Don’t Fall into the Urgency Trap

Too often at work, people rely on expertise and past experiences to jump to a conclusion. Yet research consistently shows that when we rush decisions, we often regret them—even if they end up being correct. [i]

Why we hasten decision making is quite clear. We’re inundated with incessant distractions that compete for our attention, and, at the same time, we’re facing profound pressure to go faster and drive our businesses forward, even when the path ahead is unclear.

In the aftermath of information overwhelm, evolving technology, and rapidly changing business environments, people often unconsciously fall into a pernicious paradox called the “urgency trap.”

The Urgency Trap

The urgency trap, which can be defined as the habitual, unbridled, and counterproductive tendencies to rush through decision making when under the pressure of too many demands, is a paradox because it limits the very thing that could help us be more innovative, efficient, and effective: Our critical thinking.

The ability to analyze and effectively break down an issue to make a decision or solve a problem in novel ways is sorely lacking in today’s workforce, with most employers reporting that their employees’ critical thinking skills are average at best. [ii]

The good news? Critical thinking is a teachable skill, and one that any person can learn to make time for when making decisions. To improve and devote time for critical thinking at work, consider the following best practices.

1. Question assumptions and biases

Consider this common scenario: A team is discussing a decision that they must make quickly. The team’s options—and the arguments for and against them—have been assembled, but no clear evidence supports a particular course of action. Under pressure to move fast, the team relies on their expertise and past experiences to rapidly provide a solution. Yet, in the months following their decision, the issues that prompted the original discussion persist, and the team wonders why.

The issue here may be that the team failed to question their own assumptions and biases. Indeed, when we view situations solely based on our own personal experiences and beliefs, we limit our options and provide solutions that are often short-sighted or superficial. [iii] To improve critical thinking skills, we must step back and ask ourselves,

• “Am I seeking out information that confirms my pre-conceived idea?”
• “Am I perceiving a past experience as more predictable than it actually was?”
• “Am I overemphasizing information that comes to mind quickly, instead of calculating other probabilities?”

2. Reason through logic

When presented with an argument, it is important to analyze it logically in order to determine whether or not it is valid. This means looking at the evidence that is being used to support the argument and determining whether or not it actually does support the conclusion that is being drawn.

Additionally, consider the source of the information. Is it credible? Trustworthy? Finally, be aware of common logical fallacies people tend to use when trying to speed up decision making, such as false dilemma (erroneously limiting available options) and hasty generalizations (making a claim based on a few examples rather than substantial proof).

3. Listen actively and openly

When we’re in a rush to make a decision, we often focus more on how we want to respond rather than what the speaker is saying. Active listening, on the other hand, is a critical thinking skill that involves paying close attention to what someone else is saying with the intent to learn, and then asking questions to clarify and deepen understanding.

When engaging in active listening, it’s important to avoid interrupting and instead allow the other person to fully express their thoughts. Additionally, resist the urge to judge or criticize what the other person is saying. Rather, focus on truly understanding their perspective. This may mean practicing open-mindedness by considering new ideas, even if they challenge existing beliefs. By keeping an open mind, this ensures that all sides of an issue are considered before coming to a conclusion.

4. Ask better questions

In an article for Harvard Business Review, John Coleman, author of the HBR Guide to Crafting Your Purpose , writes, “At the heart of critical thinking is the ability to formulate deep, different, and effective questions.” [iv]

To ask better questions, first consider the audience for the question (who is hearing the question and who might respond?) and the purpose (what is the goal of asking this question?). Then, approach queries with rigor and curiosity by asking questions that:

• Are open-ended yet short and direct (e.g., “How might you help me think about this differently?”)
• Challenge a group’s conventional thinking (e.g., “What if we tried a new approach?”)
• Help others reconsider their first principles or hypotheses (e.g., “As we look at the data, how might we reconsider our initial proposed solution?”)
• Encourage further discussion and analysis (e.g., “How can we deepen our understanding of this issue?”)
• Thoughtfully follow up on the solution (e.g., “How do we feel about the progress so far?”)

5. Create space for deliberation

The recommendations outlined thus far are behaviors and capabilities people can use in the moment, but sometimes, the best solutions are formulated after consideration. In fact, research shows that a deliberate process often leads to better conclusions. [v] And sleep has even been proven to help the brain assimilate a problem and see it more clearly. [vi]

When issues are complex, it’s important to find ways to resist unnecessary urgency. Start by mapping out a process that allows several days or longer to sit with a problem. Then, create space in the day to formulate in quiet reflection, whether that’s replacing your first thirty minutes in the morning with thinking instead of checking email, or going on a walk midday, or simply journaling for a few moments before bed.

Critical Thinking Cannot Be Overlooked

In the face of rapidly-evolving business environments, the ability to make smart decisions quickly is one of a company’s greatest assets—but to move fast, people must first slow down to reason through pressing issues, ask thoughtful questions, and evaluate a topic from multiple angles.

To learn more about how organizations can enhance their critical thinking and decision-making skills, download the full paper: Who Is Really Making the Decisions in Your Organization — and How?

[i] Grant Halvorson, Heidi, “Quick Decisions Create Regret, Even When They Are Good Decisions,” Fast Company. https://www.fastcompany.com/1758386/quick-decisions-create-regret-even-when-they-are-good-decisions .

[ii] Plummer, Matt, “A Short Guide to Building Your Team’s Critical Thinking Skills,” Harvard Business Review, October 2019. https://hbr.org/2019/10/a-short-guide-to-building-your-teams-critical-thinking-skills .

[iii] Benjamin Enke, Uri Gneezy, Brian Hall, David Martin, Vadim Nelidov, Theo Offerman, and Jeroen van de Ve, “Cognitive Biases: Mistakes or Missing Stakes?” Harvard Business School, 2021. https://www.hbs.edu/ris/Publication%20Files/21-102_1ed838f2-8ef3-4eec-b543-d00eb1efbe10.pdf

[iv] Coleman, John, “Critical Thinking Is About Asking Better Questions,” Harvard Business Review, April 2022. https://hbr.org/2022/04/critical-thinking-is-about-asking-better-questions .

[v] Markovitz, Daniel, “How to Avoid Rushing to Solutions When Problem-Solving,” Harvard Business Review, November 2020. https://hbr.org/2020/11/how-to-avoid-rushing-to-solutions-when-problem-solving .

[vi] Miller, Jared, “Does ‘Sleeping On It’ Really Work?” WebMD. https://www.webmd.com/sleep-disorders/features/does-sleeping-on-it-really-work .

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Why Critical Thinking Matters in Your Business

Critical thinking should become a second-nature skill for leaders and employees across your organization.

Table of Contents

Many professionals hope to pursue careers they’re passionate about so they can find joy and meaning in their work. Caring deeply about your work is vital for engagement and productivity, but balancing emotions with critical thinking is essential in the workplace. 

When employees engage in critical thinking, they use an independent, reflective thought process to evaluate issues and solve problems based on knowledge and objective evidence. 

Critical thinking skills can guide your organization toward success, but to truly maximize the problem-solving benefits of critical thinking, it’s crucial to teach this skill to your entire team. We’ll explore critical thinking skills and how to teach them in the workplace to help your business improve its decision-making and problem-solving. 

What is critical thinking?

Jen Lawrence, co-author of Engage the Fox: A Business Fable About Thinking Critically and Motivating Your Team , defines critical thinking as “the ability to solve problems effectively by systematically gathering information about an issue, generating further ideas involving a variety of perspectives, evaluating the information using logic, and making sure everyone involved is on board.”

This is a complex definition for a challenging concept. Though critical thinking might seem as straightforward as stepping back and using a formal thinking process instead of reacting instinctively to conflicts or problems, it is actually a much more challenging task.

Critical thinking’s ultimate goal is ensuring you have the best answer to a problem with maximum buy-in from all parties involved – an outcome that will ultimately save your business time, money and stress.

Why is critical thinking essential in the workplace?

A World Economic Forum report revealed that critical thinking is one of the most in-demand career skills employers seek when trying to attract and retain the best employees – and employers believe critical thinking skills will become even more necessary in the coming years. 

Critical thinking in the workplace guarantees objective and efficient problem-solving, ultimately reducing costly errors and ensuring that your organization’s resources are used wisely. Team members employing critical thinking can connect ideas, spot errors and inconsistencies, and make the best decisions most often. 

Employees with critical thinking are also more likely to accomplish the following:

• Analyzing information
• Thinking outside the box
• Coming up with creative solutions to sudden problems
• Devising thought-through, systematic plans
• Requiring less supervision

What are critical thinking skills?

Critical thinking is a soft skill that comprises multiple interpersonal and analytical abilities and attributes. Here are some essential critical thinking skills that can support workforce success.

• Observation: Employees with critical thinking can easily sense and identify an existing problem – and even predict potential issues – based on their experience and sharp perception. They’re willing to embrace multiple points of view and look at the big picture. 
• Analytical thinking: Analytical thinkers collect data from multiple sources, reject bias, and ask thoughtful questions. When approaching a problem, they gather and double-check facts, assess independent research, and sift through information to determine what’s accurate and what can help resolve the problem. 
• Open-mindedness: Employees who demonstrate critical thinking are open-minded – not afraid to consider opinions and information that differ from their beliefs and assumptions. They listen to colleagues; they can let go of personal biases and recognize that a problem’s solution can come from unexpected sources. 
• Problem-solving attitude: Critical thinkers possess a positive attitude toward problem-solving and look for optimal solutions to issues they’ve identified and analyzed. They are usually proactive and willing to offer suggestions based on all the information they receive. [Related article: How to Develop a Positive Attitude in the Workplace ]
• Communication: When managers make a decision, they must share it with the rest of the team and other stakeholders. Critical thinkers demonstrate excellent communication skills and can provide supporting arguments and evidence that substantiate the decision to ensure the entire team is on the same page. 

What are the benefits of critical thinking in the workplace?

Many workplaces operate at a frantic tempo that reinforces hasty thinking and rushed business decisions, resulting in costly mistakes and blunders. When employees are trained in critical thinking, they learn to slow the pace and gather crucial information before making decisions. 

Along with reducing costly errors, critical thinking in the workplace brings the following benefits: 

• Critical thinking improves communication. When employees think more clearly and aren’t swayed by emotion, they communicate better. “If you can think more clearly and better articulate your positions, you can better engage in discussions and make a much more meaningful contribution in your job,” said David Welton, managing partner at Grove Critical Thinking.
• Critical thinking boosts emotional intelligence. It might seem counterintuitive to associate analytical rationality with emotional intelligence . However, team members who possess critical thinking skills are less prone to rash, emotion-driven decisions. Instead, they take time to analyze the situation and make the most informed decision while being mindful and respectful of the emotional and ethical implications. 
• Critical thinking encourages creativity. Critical thinkers are open to new ideas and perspectives and accumulate a significant amount of information when facing decisions. Because of this, they’re more likely to come up with creative solutions . They are also curious and don’t shy away from asking open-ended questions. 
• Critical thinking saves time and money. By encouraging critical thinking in the workplace, you minimize the need for supervision, catch potential problems early, promote independence and initiative, and free managers to focus on other duties. All this helps your company save valuable time and resources. 

How do you teach critical thinking in the workplace?

Experts agree that critical thinking is a teachable skill. Both Lawrence and Welton recommend exploring critical thinking training programs and methods to improve your workplace’s critical thinking proficiency. Here’s a breakdown of how to teach critical thinking in the workplace: 

• Identify problem areas. Executives and managers should assess workplace areas most lacking in critical thinking. If mistakes are consistently made, determine whether the issue is a lack of critical thinking or an inherent issue with a team or process. After identifying areas that lack critical thinking, research the type of training best suited to your organization. 
• Start small. Employees newly embracing critical thinking might have trouble tackling large issues immediately. Instead, present them with smaller challenges. “Start practicing critical thinking as a skill with smaller problems as examples, and then work your way up to larger problems,” Lawrence said.
• Act preemptively. Teaching and implementing critical thinking training and methodology takes time and patience. Lawrence emphasized that critical thinking skills are best acquired during a time of calm. It might feel urgent to seek critical thinking during a crisis, but critical thinking is a challenging skill to learn amid panic and stress. Critical thinking training is best done preemptively so that when a crisis hits, employees will be prepared and critical thinking will come naturally.
• Allow sufficient time. From a managerial perspective, giving employees extra time on projects or problems might feel stressful in the middle of deadlines and executive pressures. But if you want those working for you to engage in critical thinking processes, it’s imperative to give them ample time. Allowing employees sufficient time to work through their critical thinking process can save the company time and money in the long run.

How do you identify successful critical thinking?

Successful critical thinking happens during a crisis, not after.

Lawrence provided an example involving restaurants and waitstaff: If a customer has a bad experience at a restaurant, a server using critical thinking skills will be more likely to figure out a solution to save the interaction, such as offering a free appetizer or discount. “This can save the hard-earned customer relationship you spent a lot of marketing dollars to create,” Lawrence said. This concept is applicable across many business and organizational structures. 

You should also be aware of signs of a lack of critical thinking. Lawrence pointed out that companies that change strategy rapidly, moving from one thing to the next, are likely not engaging in critical thinking. This is also the case at companies that seem to have good ideas but have trouble executing them.

As with many issues in business, company leadership determines how the rest of the organization acts. If leaders have excellent ideas but don’t follow critical thinking processes, their team will not buy into those ideas, and the company will suffer. This is why critical thinking skills often accompany positive communication skills.

“Critical thinking doesn’t just help you arrive at the best answer, but at a solution most people embrace,” Lawrence said. Modeling critical thinking at the top will help the skill trickle down to the rest of the organization, no matter your company’s type or size.

Critical thinking is the key to your business success

When critical thinking is actively implemented in an organization, mistakes are minimized, and operations run more seamlessly. 

With training, time and patience, critical thinking can become a second-nature skill for employees at all levels of experience and seniority. The money, time and conflict you’ll save in the long run are worth the extra effort of implementing critical thinking in your workplace.

Rebecka Green contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

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Critical analysis

What is it.

Critical analysis is the in-depth examination of an argument, situation, or problem, once it has been broken down into different parts. We critically analyse things for many reasons, such as checking for accuracy, forming our own opinions, understanding and improving a situation or process, solving problems, and making decisions. To do this, we use analytical thinking skills.

When we critically analyse an argument, situation, or problem, we examine the components of information, which might be in the form of text, numbers, images, or procedures. We systematically break down and interpret these components, examining them individually and looking at the relationships between them. The insights gained from this process give us the understanding we need to then critically evaluate the whole. This is called analytical thinking.

Critical analysis is one step in a critical thinking process which includes first gathering information, then critically analysing and evaluating it, and then making a decision.

Analytical thinking in everyday life

While the phrase ‘analytical thinking’ may sound daunting, we actually do this sort of thinking in our everyday lives when we brainstorm, budget, detect patterns, plan, compare, do puzzles, play games, and make decisions based on multiple sources of information.

Think of the consideration that goes into the logistics of planning a birthday dinner — who to invite, what to cook, what music to play, space for everyone, invitation messages.

And if you’ve ever created a budget for yourself, you probably broke down expenses and spending into categories like bills, repayments, holiday savings, transport costs, groceries, streaming services, clothing, and avocados. Then, you thought about where you might be able to reduce costs and where you couldn’t. In other words, you analysed your finances!

Critical analysis at university

Whatever you’re studying, analytical skills will be highly beneficial at university. Through analysis, you gain the information you need to evaluate information, which leads to deeper understanding.

Depending on your discipline, you might need to analyse things like:

• scientific data
• legal case studies
• historical events
• political policies
• mathematical theorems.

You’ll use critical analysis in your assessments, whether they’re essays, reports, reviews, proposals, research articles, reflective tasks, presentations, or portfolios.

When reading or writing about other people’s theories and arguments, you’ll likely need to complete an argument analysis. This involves examining the structure, validity, and effectiveness of arguments presented in various forms of discourse (like essays, academic articles, interviews, marketing copy, and speeches).

Critical analysis in the workplace

Employers specifically look for candidates with analytical skills because they need to know employees can use clear and logical thinking to resolve conflicts. Some industries even have specific, structured analyses that professionals in those fields need to understand in order to do their jobs, such as a cost analysis, risk analysis, or environmental impact analysis.

Here are some examples of the type of critical analyses professionals in different industries might need to do:

Starting your analysis: identifying the component parts

Component parts refer to the separate elements of an argument, situation, or problem. This might include the evidence provided, the people involved, the weather, market fluctuations, or any number of other characteristics of the situation you’re examining. If you don’t identify all the parts, you risk ignoring a critical element when you form your opinion or offer a solution.

Critically analysing an argument

When you come across an argument, you might immediately have an opinion. However, in order for you to get a comprehensive understanding of the accuracy of the argument, and explain your logic to others, you first need to critically analyse the argument by looking at its component parts.

To learn more about argument analysis, check out this tutorial on RMIT Learning Lab which includes pages on the key steps to analysing an argument, identifying strong and weak evidence and persuasive language techniques, and includes examples of argument analyses.

Critically analysing a process

Breaking something down into its component parts isn’t just used for arguments. We can also use it to analyse problems and find the root causes of issues with processes and services.

Here’s an example:

Sarawut, a nutrition consultant, has been hired by an aged care facility to review their nutritional assessment process. There are concerns that the current process isn’t adequately addressing the individual dietary needs of residents and may be negatively affecting wellbeing and nutrition.

Sarawut’s task is to provide advice on how the facility can improve the process to meet the specific needs of the residents and promote good health. Before he can offer any recommendations, he needs to find the flaws in the process. Here are some of the component parts that Sarawut plans to analyse:

• Current assessment procedures: Sarawut will review how nutritional assessments for residents entering the facility have been conducted up until now. He’ll consider how comprehensive the information is and whether it meets public health guidelines. He’ll examine the initial procedures to see where there may be flaws.
• Tools used to assess nutrition: He will consider the tools they use to screen nutrition, how sensitive they are, check that they’re working properly, are well maintained and modern. This will help him understand whether the staff have accurate information about the nutritional health of the residents.
• Current dietary plan procedures: These plans are formulated for residents based on their initial assessment, so if the assessment is flawed, the dietary plans are, too. Sarawut will investigate how the plans are developed and the level of personalisation and research that goes into them. He’ll also consider how often those plans are monitored or updated.
• Staff awareness and training: It’s the staff members who carry out the process that Sarawut is analysing and improving. He needs to check their understanding of the assessment process, make sure they’ve received adequate training, and find out how well equipped they are to address the nutritional concerns of the residents.
• Communication between health professionals: It’s important for Sarawut to evaluate the communication between staff at the facility. Are they sharing relevant information regarding the residents’ health and nutrition through the right channels? A breakdown in communication about a resident’s health could have serious consequences.

In addition to the five mentioned above, there are some more component parts on Sarawut’s list.

Can you think of anything else he should examine in order to get a comprehensive understanding of the facility’s nutritional assessment process?

Expand the section below for examples:

Now that you know how thinking analytically can help identify problems in a process or service, check out the case study below, which demonstrates how this approach can lead to innovative solutions.

Analytical thinking solves problems – a case study

In the 1960s, companies in the US didn’t have a fast, reliable, and cost-effective way to deliver urgent documents or packages. The standard mail system was slow but inexpensive, and the only alternative was a private courier, which was prohibitively expensive. That’s when Frederick W. Smith came up with the idea of a national, overnight delivery service as a part of an assignment in his undergraduate economics class at Yale University.

As the story goes, Smith received only an average grade, evidently his professor wasn’t all that impressed with the concept, but after critically analysing the current system, thinking through his original ideas more fully, and refining his business plan, Smith launched FedEx — now the largest, global, overnight delivery service in the world.

Thinking can create change and always has. As with Smith’s overnight delivery service, any service we now use and any problem we may still face provides thinkers with opportunities to critically reflect and use analytical thinking to generate solutions and viable options for improvement.

Source Bloomberg Business Week. (2004). Online extra: Fred Smith on the birth of FedEx. https://www.bloomberg.com/news/articles/2004-09-19/online-extra-fred-smith-on-the-birth-of-fedex

Reflect on your own analytical thinking

As we mentioned at the start of this page, critical analysis is an important step in a critical thinking process. To continue building your skills check out the following page in this chapter to learn about the next step: evaluating information critically.

This page includes content adapted from Analytical Thinking by OpenStax (original) and Kristin Conlin, licensed under a CC BY-NC-SA 4.0, except where otherwise noted.

Key Transferable Skills Copyright © 2024 by RMIT University Library is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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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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The Most Critical Business Analysis Skills You Need to Be Successful as a Business Analyst

Are you exploring a business analyst role and wondering if you have the required business analysis skills and experience?

What follows is the list of the most critical business analysis skills for new business analysts to bring to the table – organized into the categories of core skills, business analysis skills, soft skills, and skills that can be required for specific types of BA jobs. I also recorded a video for you sharing my thoughts on these key business analyst skills.

Before I forget, I want to be sure you know that in addition to our online business analyst training courses and business analyst certification we also offer an absolutely free workshop – Quick Start to Success as a Business Analyst training (it’s free) that’s designed to help you, the mid-career professional, kick-start your business analysis career. This workshop provides an introduction to what a business analyst does and a deeper dive into what skills you need to be successful as a business analyst. 

>> Click here to get the Quick Start to Success Business Analyst Training  <<

Now, onto the skills.

Core Skills that are Essential for Success as a Business Analyst

Typically, if business analysis is a good career choice, you’ll be able to tick off these skills (or be extremely excited to go to work right away on improving these skills just because they sound interesting).

Communication Skills

Business analysts must be good communicators . This means they can facilitate working meetings, ask good questions , listen to the answers (really listen), and absorb what’s being said. In today’s world, communication does not always happen face-to-face. The ability to be a strong communicator in a virtual setting (via conference calls or web meetings) is equally important. They are good at engaging stakeholders and cultivating active participation in the requirements process.

As a new business analyst, you may not have experience in a variety of requirements documentation  (that comes with time and a variety of project experiences) but it’s quite possible that your strong general documentation and writing skills will get you started.

Problem-Solving Skills

No project is without problems. In fact, the entire project is a solution to a problem. At the highest level, BAs facilitate a shared understanding of the problem , the possible solutions, and determine the scope of the project. You’ll also find BAs in the midst of facilitating teams to solve technical challenges, especially when they involve negotiation between multiple business or technical stakeholders. Often we start this by analyzing the business process .

Critical Thinking Skills

Business analysts are responsible for evaluating multiple options before helping a team settle on a solution. While discovering the problem to be solved, business analysts must listen to stakeholder needs but also critically consider those needs and ask probing questions until the real need is surfaced and understood. This is what makes  critical thinking and evaluation skills important for new business analysts.

While communication, problem-solving, and critical thinking skills are core to being a good BA, they are not all that’s required. Let’s look at the skills specific to the business analysis profession next.

Business Analysis Skills

The following skills are specific to the business analyst role, but even as a new business analyst or someone looking to enter the profession. At Bridging the Gap, we organize the key business analysis skills into The Business Analyst Blueprint®.

(You’ll learn all these skills in The Business Analyst Blueprint® certification program, where you can earn your Applied Certification in Business Analysis.)

Analysis & Communication Techniques are Both Key Sets of Business Analyst Skills

The first thing you’ll notice about The Business Analyst Blueprint is that the techniques are organized into Analysis Techniques and Communication Techniques. The Analysis Techniques are the models and templates we use as business analysts to analyze and think through the requirements. But these requirements do not get created in a vacuum. We must elicit or discover them from our stakeholders. This is why knowing the right Communication Techniques to use as a business analyst are equally important.

The key Communication Techniques for collaborating with stakeholders are:

• Discovery Session – to discover information related to the process or requirements from business stakeholders, so the requirements represent their needs.
• Requirements Review Session – to validate the requirements that have been captured are clear and correct.

We also consider the  glossary and user stories to be communication techniques, because their primary purpose is to capture and communicate requirements-related information to various stakeholder groups.

The Key Business Analysis Techniques

The second thing you’ll notice about The Business Analyst Blueprint is that there is not just one set of analysis techniques. One of the challenges that plague way too many projects is “missing requirements.” We miss requirements either when we don’t involve the right stakeholders (i.e., apply the right communication skills) or overlook key areas of requirements because we are only looking at one view.

The Business Analyst Blueprint® – our business analyst certification program – walks you the 3 key levels of analysis that are important to fully understanding a problem and solution domain, when software is being implemented as part of the solution. These are:

• The Business-Level , or how the business work flows operationally, often completed by analyzing the business process  (a textual model) and creating business process flow diagrams  (a visual model).
• The Software-Level , or how the software system supports the business workflows, often completed through functional requirements models like use cases and wireframes .
• The Information-Level , or how data and information are stored and maintained by an organization, completed by data modeling techniques including an entity relationship diagram (ERD) , data dictionary , data map , and system context diagram.

When you use multiple techniques, particularly powerful analytical and visual models, you will find that you naturally see gaps that others gloss over and identify the downstream impact of a change or new solution.

The Business Analysis Process Framework

The third thing you’ll notice about The Blueprint is that there is a foundational framework underlying the techniques. This is the business analysis process , or the end-to-end approach you apply to be successful and effective on a typical business process improvement and software project.

As you leverage this process framework, you’ll gain increased recognition for the value of business analysis, and you’ll start to get pulled into more interesting projects, and be engaged earlier in the process. Here’s a video about the business analysis process framework.

And, to complete a self-assessment against these skills, we have an absolutely free business analyst skills assessment for you.

Download the FREE Business Analyst Skills Assessment

In this FREE assessment, you will:

• Discover the essential skills to succeed as a BA.
• Gain clarity on your strengths and transferable skills.
• Define an action plan to expand your business analyst skill set.

>>  Download the Assessment  <<

Business Analyst Tools

Now that we covered the techniques and framework, let’s look at the tools you use to implement these techniques. As a new business analyst, the ability to use basic office tools such as Word, Excel, and PowerPoint should be sufficient to get you into the profession. Also, a common visual modeling tool is Microsoft Visio.

Other technical skills include the ability to use more sophisticated modeling tools, Enterprise Architect, requirements management tools, such as DOORS or Caliber, or project and defect management tools (there are really too many to list these days). It’s unlikely you’ll find these to be required skills for a large number of positions and they will be skills you learn on the job.

And as important as it is to have specific business analyst skills, no list of BA skills would be complete without the soft skills required to be successful as a BA. Let’s discuss those next.

Key Soft Skills for Business Analysts

Like the core skills, you might find that you already have many of these skills in your repertoire. However, these skills are listed separately because they may not be intrinsic to the roles you’ve had in the past. You may need to actively seek out improving in these areas as you move into your first business analyst role.

Relationship-Building Skills

First and foremost on the list of soft skills is the ability to forge strong relationships, often called stakeholder relationships . A stakeholder is simply anyone who has something to contribute to your project, and often you’ll work with many stakeholders from both the business and the technical teams.

This skill involves building trust and often means stepping into a leadership role on a project team to bridge gaps.

Self-Managing

While BAs are not project managers, the most successful BAs manage the business analysis effort. This means that the BA is proactive and dependency-aware. It also means they manage themselves to commitments and deadlines, a skill set which can involve influence, delegation, and issue management.

A Thick Skin

BAs receive a barrage of feedback – on their documentation and proposed solutions. To succeed as a business analyst you need to be able to separate feedback on your documents and ideas from feedback on you personally.

A Paradoxical Relationship with Ambiguity

Deep down, business analysts despise ambiguity. Ambiguities in requirements specifications lead to unexpected defects. Ambiguities in conversation lead to unnecessary conflict. At every stage of a project, you’ll find a BA clarifying and working out ambiguities.

Yet, at the beginning of a project, before the problem is fully understood and the solution is decided upon, a BA must be able to embrace the ambiguity and work effectively through ambiguity. Managing ambiguity means we embrace new information and learning as it surfaces, even if it surfaces later than we’d like.

And so we’ve reached the end of the important skills for a new business analyst. But no discussion of this topic would be complete without dealing with the  800-pound gorillas  in the profession.

Skills for Specific Business Analyst Jobs

So let’s look at these separate skill sets now.

Technical Skills

First on the list is technical skills. What about SQL, .NET, Perl, and VBScript (just to name 4 of the potentially dozens of relevant IT skills in the job marketplace today)? While it’s important that a business analyst has a conceptual technical understanding as it helps you analyze the problem to be solved and communicate with technical stakeholders, you don’t need to be able to write code or run database queries.

Unless you want to. If you want to there are plenty of hiring managers who will gladly take you on as a BA and a software developer.

We see technical skills in business analyst jobs for a variety of reasons, but most often it’s because the organization is looking for one person to fill two roles.

There goes the first 800-pound gorilla.

Onto the second.

Methodology Skills

Another way the business analyst job role can be specialized is around a specific methodology. Common examples include:

• Agile Business Analysis
• Business Process Modeling Notation (BPMN)
• Rational Unified Process

Pick just about any specific way that an organization could choose to approach change or software development, and you can find business analyst job profiles requesting BAs with this specialized skill set.

Having one or more of these skill sets in your back pocket can be an added advantage when it comes to searching for a job, and quickly getting up to speed on any specialized methodologies in place in your organization is critical for a new business analyst.

Industry and Domain Expertise

Now for the third, because what about business and industry domain expertise ? Do I need to learn about the financial domain? Or insurance? Or the ins and outs of running an HR department?

How can I ever become a BA if I must learn this all first?

You don’t need to be an expert in every domain or industry. 

In fact, that would be impossible.

Yes, a lot of BA jobs require special areas of expertise. If you have areas of expertise in specific domains, you can leverage your expertise in your BA career. But if you don’t have a specific expertise to leverage, you’ll just need to focus on opportunities that will value your other business analysis skills.

And with that discussion, we’ve effectively dealt with three 800-pound gorillas. Not bad for a day’s work! But there’s one more thing I’d like you to keep in mind.

One More Thing When It Comes to Business Analyst Skills…

There is a big difference between business analy sis and business anal yst roles . Job titles are used very inconsistently in our industry. This means that as a business analyst we might specialize in any number of skills. It also means that even if we’re experts in business analy sis , we may not qualify for all business analyst jobs.

And, we also see business analyst skills being critical to success in many different roles, like product management, product ownership, project management, technical leadership, and even upper management roles. There is a long shelf life on your business analyst skills, as you get started, advance in the career and move along on your business analyst career path .

All the more reason to get started now! For more guidance, check out our next video on the business analyst career path.

>> Get Your Quick Start to Success

>> Click here to register for the free training today  <<

And also, plan to join us for the next session of The Business Analyst Blueprint® certification program , the online certification program, where you can also earn your Applied Certification in Business Analysis ™ . You will fill your BA toolbox with the key skills to launch your business analyst career.

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Project Management, Business Analysis & Data Analysis > Project Management and Agile > Project Management – Advanced Certificate

Critical Thinking: Business Analysis and Decision-Making Strategies

Sharpen your skills by becoming more aware of your own thought process and the thought processes of others. Learn techniques to foster critical thinking through probing and reflecting. Enhance skills in structuring an argument, judging the credibility of a source and making better decisions.  As a result, you become more effective in analysis, communication and leadership.

The PMI Authorized Training Partner logo is a registered mark of the Project Management Institute, Inc.

Barbara Farmerie, MBA, PMP

Barb Farmerie was born in Pittsburgh, Pennsylvania, starting her career at a bank as a systems analyst. Moving to Milwaukee to further advance her career in information technology (and get married) proved successful. She worked for a large consumer goods ... read more

Who Should Attend

Those who want to improve their problem-solving and decision-making abilities, as well as individuals who want to challenge their current approach to analysis.

Benefits and Learning Outcomes

• Develop critical thinking and analysis skills
• Learn techniques for critical thinking and improved focus
• Enhance customer service through better problem-solving and decision-making
• Increase situational awareness
• Become more effective in analysis, communication and leadership

Course Outline/Topics

Seminar Outline

Overview of Critical Thinking

• Definitions of Critical Thinking
• Components of Critical Thinking
• Critical vs. Noncritical Thinking
• Activity: Self analysis
• Critical Thinking model
• How to Stimulate Critical Thinking in a Team
• Preventing Groupthink
• Activity: Baloney detection quiz

Asking Questions and Problem Definition

• Activity: Asking smart questions
• Structuring problem statements
• Activity: Develop a problem and goal statement
• Identifying the cause of the problem
• Divergent/convergent thinking
• Mind mapping
• Fishbone diagram
• Activity: Consensus thinking

  Business Problem Analysis and Decision Making

• Business problem analysis model
• SWOT analysis
• Activity: Problem solving and decision making
• Decision/event trees
• Activity: Decision/event tree
• Six Thinking Hats: Approach to decision making
• Activity: Applying Six Thinking Hats
• Making decisions
• Activity: Selecting the best decision-making strategy
• Who makes the decision?
• Decision-making strategies
• Decision by consensus
• Grid analysis
• Weighted grid analysis
• Pareto analysis
• Qualitative decision-making methods
• Activity: Picking the best decision method
• Activity: Balancing the budget

Testimonials

"Barb is an excellent instructor!  I’m very happy I attended this class."   —  Margarita Steinmetz, CBRE|ESI

"Barbara is extremely knowledgeable and has a wide breadth of experience. She provided steps to analyze and solve problems to move forward. Really liked the class activities."   —   Emily Olson, Educators Credit Union

Meet Instructor Barbara Farmerie, MBA, PMP

Date: Mon-Tues, Oct. 28-29, and Nov. 4-5

Delivery Method: Live Online

Time: 1:00pm - 4:30pm CT

Platform: Zoom

Instructor: Barbara Farmerie MBA, PMP

$845 by Oct 14, 2024 $895 after Oct 14, 2024

CEUs: 1.4, PDUs: 14.0

Enrollment Limit: 20

Program Number: 5025-16384

Note: Participants will receive instructions for logging into Canvas to access course materials and Zoom links approximately one week prior to the course start date.

Full payment or arrangement for payment (i.e. purchase order or payment plan) must be made before the first day of class.

Registration Deadline: Oct 28, 2024

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Critical Thinking Definition, Skills, and Examples

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Critical thinking refers to the ability to analyze information objectively and make a reasoned judgment. It involves the evaluation of sources, such as data, facts, observable phenomena, and research findings.

Good critical thinkers can draw reasonable conclusions from a set of information, and discriminate between useful and less useful details to solve problems or make decisions. These skills are especially helpful at school and in the workplace, where employers prioritize the ability to think critically. Find out why and see how you can demonstrate that you have this ability.

Examples of Critical Thinking

The circumstances that demand critical thinking vary from industry to industry. Some examples include:

• A triage nurse analyzes the cases at hand and decides the order by which the patients should be treated.
• A plumber evaluates the materials that would best suit a particular job.
• An attorney reviews the evidence and devises a strategy to win a case or to decide whether to settle out of court.
• A manager analyzes customer feedback forms and uses this information to develop a customer service training session for employees.

Why Do Employers Value Critical Thinking Skills?

Employers want job candidates who can evaluate a situation using logical thought and offer the best solution.

Someone with critical thinking skills can be trusted to make decisions independently, and will not need constant handholding.

Hiring a critical thinker means that micromanaging won't be required. Critical thinking abilities are among the most sought-after skills in almost every industry and workplace. You can demonstrate critical thinking by using related keywords in your resume and cover letter and during your interview.

How to Demonstrate Critical Thinking in a Job Search

If critical thinking is a key phrase in the job listings you are applying for, be sure to emphasize your critical thinking skills throughout your job search.

Add Keywords to Your Resume

You can use critical thinking keywords (analytical, problem solving, creativity, etc.) in your resume. When describing your work history, include top critical thinking skills that accurately describe you. You can also include them in your resume summary, if you have one.

For example, your summary might read, “Marketing Associate with five years of experience in project management. Skilled in conducting thorough market research and competitor analysis to assess market trends and client needs, and to develop appropriate acquisition tactics.”

Mention Skills in Your Cover Letter

Include these critical thinking skills in your cover letter. In the body of your letter, mention one or two of these skills, and give specific examples of times when you have demonstrated them at work. Think about times when you had to analyze or evaluate materials to solve a problem.

Show the Interviewer Your Skills

You can use these skill words in an interview. Discuss a time when you were faced with a particular problem or challenge at work and explain how you applied critical thinking to solve it.

Some interviewers will give you a hypothetical scenario or problem, and ask you to use critical thinking skills to solve it. In this case, explain your thought process thoroughly to the interviewer. He or she is typically more focused on how you arrive at your solution rather than the solution itself. The interviewer wants to see you analyze and evaluate (key parts of critical thinking) the given scenario or problem.

Of course, each job will require different skills and experiences, so make sure you read the job description carefully and focus on the skills listed by the employer.

Top Critical Thinking Skills

Keep these in-demand skills in mind as you refine your critical thinking practice —whether for work or school.

Part of critical thinking is the ability to carefully examine something, whether it is a problem, a set of data, or a text. People with analytical skills can examine information, understand what it means, and properly explain to others the implications of that information.

• Asking Thoughtful Questions
• Data Analysis
• Interpretation
• Questioning Evidence
• Recognizing Patterns

Communication

Often, you will need to share your conclusions with your employers or with a group of classmates or colleagues. You need to be able to communicate with others to share your ideas effectively. You might also need to engage in critical thinking in a group. In this case, you will need to work with others and communicate effectively to figure out solutions to complex problems.

• Active Listening
• Collaboration
• Explanation
• Interpersonal
• Presentation
• Verbal Communication
• Written Communication

Critical thinking often involves creativity and innovation. You might need to spot patterns in the information you are looking at or come up with a solution that no one else has thought of before. All of this involves a creative eye that can take a different approach from all other approaches.

• Flexibility
• Conceptualization
• Imagination
• Drawing Connections
• Synthesizing

Open-Mindedness

To think critically, you need to be able to put aside any assumptions or judgments and merely analyze the information you receive. You need to be objective, evaluating ideas without bias.

• Objectivity
• Observation

Problem-Solving

Problem-solving is another critical thinking skill that involves analyzing a problem, generating and implementing a solution, and assessing the success of the plan. Employers don’t simply want employees who can think about information critically. They also need to be able to come up with practical solutions.

• Attention to Detail
• Clarification
• Decision Making
• Groundedness
• Identifying Patterns

More Critical Thinking Skills

• Inductive Reasoning
• Deductive Reasoning
• Noticing Outliers
• Adaptability
• Emotional Intelligence
• Brainstorming
• Optimization
• Restructuring
• Integration
• Strategic Planning
• Project Management
• Ongoing Improvement
• Causal Relationships
• Case Analysis
• Diagnostics
• SWOT Analysis
• Business Intelligence
• Quantitative Data Management
• Qualitative Data Management
• Risk Management
• Scientific Method
• Consumer Behavior

Key Takeaways

• Demonstrate you have critical thinking skills by adding relevant keywords to your resume.
• Mention pertinent critical thinking skills in your cover letter, too, and include an example of a time when you demonstrated them at work.
• Finally, highlight critical thinking skills during your interview. For instance, you might discuss a time when you were faced with a challenge at work and explain how you applied critical thinking skills to solve it.

University of Louisville. " What is Critical Thinking ."

American Management Association. " AMA Critical Skills Survey: Workers Need Higher Level Skills to Succeed in the 21st Century ."

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Thinking Like a Business Analyst

Written by Steve Blais on November 26, 2013 . Posted in Articles .

Thinking Fluently

The thing is that we don’t think in words, we think in pictures, images, concepts, and so forth and then translate them into words in order to communicate them. Perhaps fluency, or “thinking like…” is a matter of seeing and understanding the pictures or concepts instead of or in addition to the words. For example when you learn a second language you spend lots of time translating the words. To understand a word in the second language, you translate it first into a corresponding word in your native language which produces an image in your mind. An English speaker learning Spanish would translate “el vaso de agua sobre la mesa” into “the glass of water on the table” and then see the image of the glass on the table in her mind. A Spanish speaker would see the image in her mind immediately. When you are fluent in the second language, you are able to do the same as the native speaker: see the image without exchanging the words in your frontal cortex. Of course each of us has a different image in our heads of what a glass of water on the table looks like, but that’s fodder for another article later.

So we might conclude that if we are “thinking like” some role, or profession that we find ourselves fluent in that role, or profession, or in other words, we see the concepts and images instead of just the words. There may be other phrases or descriptions for the same thing, such as someone “getting it”, whatever “it” is, or to borrow a phrase from the current discussions of agile, “you don’t do agile, you are agile”.

Thinking like…

I think we all have roles or positions or times in our life when we can say we were or are fluent in something, other than a language. For example, at times in my life, I have felt myself fluent in several roles.

In my early years I thought like a programmer. When presented a problem. I could see the code that would be written that would solve that problem. Unfortunately, I probably suffered from what Gerry Weinberg calls the “No Problem Syndrome” in which case I was probably mentally seeing a solution in code before the problem was fully explained. Too many jumping to solutions in that way is another definition of “thinking like a programmer”.

There was also a time that I felt as though I thought like a system analyst or designer. I could see the software programs interconnecting, accessing data, and even the hardware devices on which they would reside. As an analyst I could see the pieces of a larger problem, sometimes with an inability to see the larger problem itself. As a data modeler, for example, I would think in terms of entities, relationships, foreign and primary keys, even when conducting the initial interviews with the users and business stakeholders. This, as you can imagine, resulted in some rather interesting miscommunications during the elicitation phase.

On the other hand, I was never much good at thinking like a project manager. While I had my successes in project management, there were those of my peers who could see a Gantt chart in their heads when presented with the project charter. They could mentally break down the scope into a work breakdown structure and could see the precedence network in their heads with all resources arranged and delegated amongst the tasks. I needed to go through the routine of decomposing and organizing the project with the team. I tended to think technically rather than managerially. It wasn’t ‘instinctive’ to me until I had spent many years managing, at least not as instinctive as writing code or designing systems.

Not a success guarantee, but certainly an indicator

Fluency, or “thinking like..”, is not a guarantee of success in any given profession or role. In other words, you can certainly be a success in a given role without becoming so invested in that role that your thinking is consumed by it. There is certainly evidence and cognitive behavior studies that indicate that we have predilections for fluency in certain areas. Some people have a natural ability to learn languages and the intonations and inflections that make their recitation in that language seem natural, even to a native speaker. Others struggle just to learn enough vocabulary to understand, much less speak. Similarly, some people will find it much easier to be fluent in a programming language than others. However, fluent or not, a person may be a highly successful programmer, designer, project manager, speaker of a second language, or business analyst without necessarily being fluent.

On the other hand, there is also evidence that indicates with focus, attention, practice, and intent, one can master a role, and become fluent in it, even without a predilection toward it. In the book outliers, Malcolm Gladwell suggests that one can become an expert, be fully fluent, in a role or profession by practicing that role or profession for 10,000 hours.

Regardless of whether you have a penchant for it or not or whether you are fluent in business analysis or not, you will be more successful as a business analyst when you think as a business analyst. So what does it mean to ‘think like a business analyst’?

Thinking like a business analyst

The problem with ‘thinking like a business analyst’ is that the role of business analyst is so vague. A programmer programs, she writes code that makes computers do things. A system analyst or designer analyzes problems and creates computer-based systems to solve those problems. What is the specific activity that the business analyst thinks about?

• Requirements? Can you imagine thinking about everything in terms of requirements, as in “It is dinner time, what are my requirements for dinner?”
• Documentation? Yes, the business analyst seems to do a lot of documentation such that sometimes his entire role seems to be about documentation, but thinking in documentation, as in “let me write down what I am going to wear to work today” doesn’t seem to be applicable.
• Liaison or translator between the business and IT? Your thinking might run like this: “let me explain to you what is going on with this television show, dear”. No, that doesn’t quite get it either.

Since all business analysts regardless of assignment or interpretation of the position or role are problem solvers, (the business analyst’s mission: Business, the final frontier. This is the mission of the business analyst: to go identify business problems, to seek out new solutions, to boldly go where no business analyst has gone before. [1]) perhaps thinking like a business analyst is thinking as a problem solver. Sherlock Holmes comes to mind as an example. Mr. Spock is another.

We are all born with the capacity to solve problems. Many of us let that capacity atrophy as we get older for a variety of reasons, mostly cultural and social. After all, Holmes and Spock are not the most lovable of characters. If you look at problem solving thinking, you see a number of different modes of thinking that may go into solving problems.

Critical thinking is a form of reasoning that challenges thinking and beliefs to determine what is true, partially true, or false. For example, a business analyst thinking critically would question the problem statement to make sure that it is the real problem statement and not the description of a symptom before proceeding with the analysis. Critical thinking underlies the other business analyst problem solving thinking modes. Sherlock Holmes is an example of a critical thinker, constantly challenging LeStrade’s and others’ assumptions of guilt or innocence as not being based on facts.

System thinking is the process of viewing problems as parts of whole systems rather than individual occurrences. The business analyst needs to view the organization and its business processes as a system or systems within systems to truly understand the impacts of the changes to the organization that the business analyst is bringing about. There have been a number of discussions on LinkedIn business analyst discussion groups lately about the application of system thinking to business analysis masterfully led by Duane Banks and Julian Sammy.

Strategic thinking as applied by an individual involves the generation and application of insights and opportunities that extend beyond the present timeframe. While system thinking provides the business analyst the larger view in terms of breadth, depth and context, strategic thinking provides the business analyst a larger view in terms of time. While strategic thinking is not usually associated with the business analyst who typically works on projects which are tactical in nature, the business analyst, being in the center of business and IT is usually in a prime position to understand the strategic implications of the projects and products on the organization.

Analytical thinking is essential to problem solving and goes hand in hand with critical thinking. Critical thinking and analytical thinking are sometimes considered synonymous. Critical thinking is specifically focused on thinking while analytical thinking is focused on everything else. Since it is often difficult to see the complete problem or the entire situation in which the problem exists given the complexities of business and technology today, the business analyst breaks the larger picture into smaller more manageable images to make examination and understanding easier. Again, Sherlock Holmes broke crime scenes down to pieces of evidence that, when put all together, assembled a complete picture of the crime and the perpetrator. This reassembly of the evidence or the pieces back into a complete whole to determine the ‘crime’ is what allows business analysts to be both system thinkers and analytical thinkers successfully. The two modes of thinking are not diametrically opposed or mutually exclusive.

Visual thinking is perhaps the only mode that might require a bit of predilection in that some people are more visual than others. But this thinking mode brings us all the way back to the initial premise that we don’t think in words, but in images and concepts: visions. To the degree that we as business analysts can visualize the problem and solution and describe that vision or render the vision into graphical form is the degree that we will be understood in our efforts to communicate.

Now that I think about it…

Thinking like a business analyst might be simply thinking first:

Thinking before reacting, Questioning before accepting, Verifying before assuming, Understanding before judging, Viewing the whole process before focusing in on the detail issue, Analyzing before concluding, Visualizing before writing.

While we as business analysts value the activities on the right hand side we value the activities on the left side more (to paraphrase the Agile Manifesto). Thinking like a business analyst may simply be a matter of reasoning about problems, visualizing solutions, and asking more questions.

Don’t forget to leave your comments below.

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Critical thinking: what is it and how can you develop this skill.

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Founder and Head of the international IT recruitment company Lucky Hunter .

I have already raised the issue of the importance of developing emotional intelligence in previous pieces, and today I would like to talk about why critical thinking also matters for employees—especially top managers of companies.

First of all, let's define what critical thinking is. In general, it is the ability to objectively analyze events, incoming information and arguments; approach an issue from different sides; and form conclusions based on the analysis. Developing critical thinking is relevant not only for work but also for life—today we're inundated with huge amounts of information every day, and in order to be able to analyze this information and determine our position based on balanced facts, it is important to look at situations critically.

Critical thinking allows you to always soberly assess the situations taking place in your work, give an objective assessment, including your own actions and the actions of others, effectively negotiate and find the best way out of ambiguous situations. That is why large companies, when hiring employees, pay close attention to the soft skills of a candidate, especially if they are applying for top positions.

So, how can you develop critical thinking?

Practice analyzing.

Turn the events happening around you into facts. Learn to separate them from emotions. Emotions often prevent us from thinking critically, because they reduce everything to the emotional component, which cannot be relied on. Study different points of view on a specific topic. Read more, broaden your horizons and work with information—the more you “dissect” any information material, the more chances you have to get to the bottom of it.

Pay attention to self-criticism.

There should always be a certain amount of healthy self-criticism in your actions and behavior. The keyword here is healthy because it is important to maintain balance and not slip into self-flagellation. Learn to adequately evaluate yourself and your actions, and determine your strengths and growth areas. I work in recruiting, so I will give an example from my practice: In the work of a recruiter, self-criticism is vital for an objective assessment of a candidate, because, in order to evaluate others, you must first be able to objectively evaluate yourself.

Build productive communication.

If you conduct a dialogue calmly and kindly, without insults and rudeness, truly listening and hearing the interlocutor, you thereby increase the chances of getting some useful insight into the process of interaction. It can give you the opportunity to look at the situation from a new angle and come to a conclusion that you would not have come to otherwise. Therefore, the ability to conduct effective, productive communication also affects the development of critical thinking.

Develop your forecasting skills.

This point is quite closely related to the first one. Analyze information and build forecasts based on the analysis, think over the likely development of events and try to answer for yourself why it will be exactly like this. Such forecasting, again, allows you to study a specific situation from different sides, get certain insights into the process and come to an objective conclusion.

Today, it's crucial for employees and managers to develop the skill of thinking critically—all you need to do is start. The result could have a positive impact on all fields of your life, both personal and professional, because a high level of critical thinking has a good effect on communication (including business). It allows you to form objective conclusions and cut off the excess of information garbage, focusing on facts and analyzing them.

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5 Reasons Why Business Analysts Need Critical Thinking Skills

We once considered capital as the major facet of starting and running a business. However, the contemporary world is revealing something else! The brains behind a business are what enable it to succeed. There are many entrepreneurs who had the capital and resources but suffered dimensionally due to poor decision-making.

Capital alone can’t guarantee a business’s success or survival! For that matter, we shouldn’t be surprised when we see a new trend of leveraging data, data analytics, business analytics, and business analysts.

Many businesses currently hire business analysts to bridge the gap between data analytics and other business departments. To substantiate, the field of data and business analysis is among the fastest-growing sectors according to the US Bureau of Labour Statistics . At this juncture, we will explore the work of business analysts and why the modern business world is investing in them.

Business Analysts

Business analysts are professionals concerned with analyzing and assessing business strategies, operations, products, services, and investments. These professionals think about every aspect of a business in order to guide its growth and development. Unlike business analytics professionals, business analysts have less to do with data. However, deal more with critical thinking.

Business analysts must have ideal critical thinking skills. The process of reflecting on business models, strategies, partnerships, and drawing meaning from business data all require exceptional critical thinking abilities. In the real sense, besides data, business analysts are key drivers of business success.

Critical thinking is the ability to analyze and form a proper judgment depending on the available data and evidence. Data and its proper application are now becoming a tool to sustain businesses in the marketplace. With data, business managers can make informed decisions, predict future trends and stay upfront with technological advancements. Precisely, harnessing the power of data and analytics offers a competitive edge.

Business analysts can at times work with data analysts and other business departments to effectively implement strategies and practices. The ability to think critically, and assess the pros and cons of the possible decision by leveraging data prevents or minimizes costly mistakes. That’s why business analysts must be critical thinkers. Other reasons why business analysts require critical thinking skills are; 

Enhances Decision-Making

The ability to make things a reality all lies in the power of decision-making. Good business analysts must know how to make reliable decisions just like those who want to become better leaders . That’s where critical thinking skills come into play. Critical thinking is a core skill of business analysts and allows them to function optimally.

Here, the skill helps them to be objective and avoid relying on emotions to make decisions. When this is followed, they are able to remain open-minded, assess the evidence, and alternatives, reflect upon the possible outcomes and then make quality decisions. 

Professional business analysts are supposed to guide a company throughout its processes and operations. Modern business analysts are even tasked to assess a company’s potential in new areas of investments for example in cryptocurrency or when it comes to partnering with foreign companies. 

Having good business analysts who are critical thinkers can help save a business from losing millions of dollars in wrong partnerships and unprecedented times. 

Helps Understand The Latest Business Trends 

Business analysts must be up to date with the latest trends and technologies that businesses utilize to stay afloat. For example, when it comes to the introduction of new technologies like VR in a company, business analysts must assess its impact on both the company and the customers. Precisely, business analysts play a key role in the change management process , by reflecting on every aspect of the process as well as its long-term effects on stakeholders.

Business analysts must think critically and logically about the consequences of the new policies and also help in conducting user acceptance tests. Change is an intricate process and can at times result in unintended consequences that may affect every facet of a business like profits. That’s why it’s essential to have business analysts with quality critical thinking skills.  

Helps Take Possible Consequences into Consideration

When businesses make informed decisions, they are better positioned to handle undesirable consequences. Besides, they may take on possible risks with the assurance that they are associated with positive outcomes down the line. Good business analysts use their critical thinking capabilities to analyze decisions and assess risks.

They guide a business on the possible risks they can take and ones that they can’t even consider at any one point. In this, they help businesses prevent losses and changes that may hinder business progress. 

Helps Take into Account All Stakeholders’ Interests

Businesses can operate effectively when they focus on cultivating quality relationships with their stakeholders. Stakeholders are parties with a connection or interest in a company. These include shareholders, employees, suppliers, customers, and investors. All stakeholders have different expectations from the company. For example, customers expect quality products or services from a company. However, the business must ensure that the products or services are priced at the best rate, i.e one that helps it earn some percentage of profits. 

Here, business analysts are tasked with forming a common platform where stakeholders’ interests are met without costing the company in the long run. They are supposed to think about the stakeholders’ demands and analyze whether they are also in the best interest of the company. They must analyze the different business KPIs (key performance indicators) and help a business succeed. 

Helps Realize Business Opportunities & Threats 

Analyzing business opportunities is very crucial in guiding a company to succeed, although many times the facet of threats isn’t assessed excellently. Business analysts are supposed to carry out a SWOT analysis to help a business seize opportunities and eliminate threats. They analyze the market, stakeholders’ interests, and possible threats in conjunction with the business strengths and weaknesses.

It’s business analysts who think critically and emphasize how given changes might impact the business in the short and long run. They engage in data visualization to produce data-backed ideas, not just personal opinions before making decisions.

Business analysts are among the top in-demand business professionals today. That’s because they provide insights into business operations, guide decision-making processes, and help businesses stay afloat. Besides, they help businesses transform and become technologically adept since the world is becoming more and more technologically driven. 

About The Author

Jessica Robinson loves to write interesting and knowledgeable blogs regarding business management, education and life to satiate the curiosity of her lovely readers. Currently, she is serving as a content manager at the ‘Speaking Polymath’. Every piece of content that she writes demonstrates her immense love and passion for her profession.

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Business process analysis (BPA) is an approach to analyzing business operation processes. It is a detailed, multi-step examination of each part of a process to identify what is working well in your current process, what needs to be improved and how any necessary improvements can best be made. There are different business process analysis methods, but all apply the underlying principle that optimized systems generate better overall business results. 

Common desired outcomes of BPA are greater cost savings, increased revenue and better business engagement. For instance, you might use BPA to analyze customer engagement and where there are downturns, blocks or unexpectedly low conversions. Business process analysis can also reveal what in your business operations or policies creates low employee engagement.

There might be a little confusion about the difference between business process analysis (BPA) and business analysis (BA). These are related areas of business process management but are not the same. BPA focuses on specific process analysis and business process modeling. BA, on the other hand, is applied to the greater business operation landscape. BA focuses on the analysis of other areas, such as financial forecasting, cost analysis, budgets, hiring and cuts. 

The overarching benefit of business process analysis (BPA) is optimized, daily functionality across your business operations that strategically aligns with your business goals and decision making. 

For SME businesses, BPA can create the following improvements:

• Increase efficiency in existing processes:  BPA increases time-to-value for product applications. It also lowers time in operational cycles for workflows, such as employee onboarding and customer or patient in-take processes.
• Reveal capacity issues:  In any process, resources can be limited. BPA identifies where the capacity limit lies, how it affects the process and how to improve it. This is a strong consideration for scaling. For instance, digital tools and platforms you currently use may limit current organizational needs and  workflows . BPA can help you identify changes you need to make that are specifically aligned to your organization’s growth.
• Clarify policies and rules:  As organizations move to  more remote work and greater adoption of digital devices  (link resides outside ibm.com), a common misalignment exists in security and device usage. The analysis can identify a path for faster IT approval processes and uniformity in security policy enforcement.
• Create better governance practices:   Risk management is increasing as a priority for businesses  (link resides outside ibm.com). Compliance is a costly endeavor for organizations to maintain, and it is even more costly to address when issues arise. Business process analysis can reveal where compliance measures have faltered. For example, your organization may be out of compliance in the frequency you audit application security measures. BPA can set an improvement plan in place that considers resources and compliance needs to ensure a process can be executed — and sustained. 
• Identify cost savings:  BPA reveals redundancies in tasks and labor. Organizations that have moved to digital document workflows are a good example how reduced human error and time in searching for documents creates cost savings.
• Solve for bottlenecks:  Bottlenecks occur when channels for communication, development and execution are siloed. A business process analysis can expose communication gaps and resolve approval process obstructions.
• Optimize deployment and release processes:  Efficient processes create smoother releases and deployments.
• Improve integration and adoption processes:  Similarly, adopting new technology across an enterprise or department is a monumental process. BPA sets processes in place that can include useful training programs and workflow visuals that support higher adoption rates.
• Strengthen company culture:  A better process in any area is a housecleaning of sorts. The improvements breathe new life into employee experience on a daily basis. The result is better morale and better engagement for internal processes. For customers, optimized processes — such as a better website or customer service experience — increases engagement and positive perception of your business. 

There are two predominant philosophies that guide business process analysis (BPA) methodology: 

• Six Sigma approach
• Lean Six Sigma

Six Sigma is a five- to seven-step methodology that most businesses today use to analyze efficiencies and restraints. Lean Six Sigma differs slightly in that it is a combination of the Six Sigma approach and Lean philosophy. It’s a collaborative approach that focuses on eliminating tasks and resources that don’t provide defined value.

You’ll gain a sense of how a business process analysis is executed when you consider the detailed-nature intrinsic to every step.

In general, BPA follows this structure:

• Define:  Start by identifying the processes you want to analyze. Typically, these are where you see problems first. Process analysis can start with (and also include) process diagrams for each step. Analysts begin with as-is processes and look at formal and informal processes, such as documented processes and processes specific to an organization’s culture.
• Measure:  Next, review how the process functions against defined metrics. This step is also at the root of helping to create improved KPI metrics. If those are well-defined first, a business will measure processes against the KPIs. KPIs include efficiency versus effectiveness indicators, quality, productivity, profitability and value indicators. They also include competitive and capacity indicators. For instance, customer engagement workflows might be measured by quality and effectiveness versus efficiency metrics.
• Analyze:  There are several types of analysis techniques, and each one serves a different purpose. Business process analysts might run a value analysis, a gap analysis or root cause analysis (RCA). These are extensive analytical methods that each include their own set of steps. A gap analysis reveals what’s missing in the process. A value analysis conveys what is of value within the process — and what is waste, as a result. A root cause analysis applies certain “why” questions and methods that help you to work backward to the root cause of the problem in a process. 
• Improve:  Business process managers collaborate with analysts to create and execute plans that improve problem areas. Improvements may mean re-mapping a process, increasing resources or shifting communication approaches and channels. Again, this can be a detailed step that can apply a variety of improvement methods.
• Control:  After such a significant analysis, controlling the new standards and processes is the final step. Decision-makers can use the analysis to then manage resources, responsibilities, hiring processes, IT, administrative and executive processes. Stakeholders also monitor these changes and set time markers for future analysis.

If you’ve recently adopted new technology that’s being underutilized, or if you have recurring turnover in one area of your business, business process analysis (BPA) is a useful tool to uncover the reasons for these outcomes and then to set process improvements in place. 

Your business goals determine where and how you implement business process analysis. Organizations that value employee and company-wide problem-solving and process improvement as a core part of their culture set a foundation for better morale, lower turnover and better customer experience. So, whether you apply business process analysis tools informally, or you formally audit processes quarterly or annually, it should be a fundamental part of your business function.

Business process analysis begins with analyzing as-is processes. Business process mapping is a common tool used in BPA. It is an important visual resource and document to draw upon for your analysis. Using the documentation and insights gained from the analysis, your organization can then create a business process improvement plan. Business improvement plans will typically generate new business process models, using flowcharts, with improved process flows.

Keep in mind, business process analysis relates solely to your business operation processes. It is not the method of analyzing areas of business that aren’t specifically process-related. Process analysis in business is its own defined discipline. It is a guide for optimizing every operational area of your business.

Examples of BPA include the following:

• Reviewing employee on-boarding to align with business culture and better engagement.
• Analyzing marketing processes to reconcile whether metrics and paths align with key performance indicators (KPI), such as how well customers are converting or how many qualified leads are engaging with your business.
• Uncovering where inefficiencies exist in technology adoption processes.

In process analysis, analysts use diagrams to define input and output points, tasks sequences and what processes are sub-processes nested under main processes.

Analysts also use software to map and create workflows. This includes software that automates business process analysis (BPA) and enables organizations to apply end-to-end process modeling to map when a process starts and determine when it ends.

Process modeling and process mapping tools are integral to BPA. Organizations use  business process model notation  (BPMN) diagramming and supplier, input, process, output, customer (SIPOC) model diagramming as two workflow solutions for better operations. These visual tools are an excellent way to show changes in a process. They can be used as a “before and after” visual guide to train employees, for instance, or to map every process improvement back to your key business goals. 

You might be wondering at this point, who in an organization is responsible for BPA, given roles, resources and skill sets?

Certainly, resources can be limited for SMEs. Working with an outside business analyst consultant might be the most viable route.

At the enterprise level, businesses employ business process analysts and process architects to perform business process analysis. These are different terms for similar roles. Both of these roles might work with business architects or work with executives and division leads. 

In addition, business process analysis relies on the expertise of subject matter experts. These might include a number of employees, stakeholders and consultants, such as analysts, data scientists, quants, IT, administrators and employees who are closely aligned to a process. 

Currently,  hyperautomation  is considered one of the highest priorities across enterprise businesses. Gartner has forecasted that  the industry will reach USD 600 billion by 2022  (link resides outside ibm.com). Hyperautomation steadily decreases the amount of human intervention for a fully automated, responsive process — or a smart process.

Your organization may want to consider specific questions to move toward automated processes: 

• What key areas do you seek to automate and why?
• Are there more common manual errors or misapplied policies? 
• Where are there costly and high-volume processes? 
• Has the organization determined obvious process problems? 
• What creates customer dissatisfaction?

Business process analysis (BPA) can help your organization create a documented, mapped path to integrating automated processes and moving toward a goal of hyperautomation. As an example, moving from a hybrid to fully automated customer chatbot support is one way service centers lower costs and optimize customer support with hyperautomation.

How do SMEs best apply business process analysis (BPA) to start?

First, target mission-critical processes with the highest business impact. Then, consider mapping a process for automation. 

Next, standardize automation documentation — as well as process documentation — across departments and your organization.

For instance, IT can use BPA to map the process for software security protocols for various roles, which enables your organization to better manage onboarding and scaling as a result.

IBM provides process templates for project-based process analysis that are based on BPMN diagramming. Process mapping is integral to an optimal automation strategy.

Learn how  IBM Business Automation workflows  enable your business to mine process data to gain critical insights and automate digital workflows on-premises or in the cloud.

Download IBM Process Management for Dummies as a resource to learn the basics of process management to drive competitive practices and processes.