These two important phrases in business are bandied about a lot: Analytical Thinking versus Critical Thinking.
Let’s face it. Some business definitions generally are simply head-scratching. For example, can you tell me what’s the real difference between an objective, goal or purpose? Or, the one that used to confound me and my clients: what’s an?
Perhaps you’re the same way, but I am often confused about Analytical Thinking and Critical Thinking, especially when some definitions are so vague (and some, so detailed) they sound like synonyms … and they definitely are not at all the same thing.
We need better definitions for analytical and critical thinking
For many years, I’ve used two specific definitions for both Analytical Thinking and Critical Thinking that wouldn’t win any scientific or academic applause. But, they work for me, and they seem to have helped others. The definitions try to explain what you should be doing when using either thinking style.
From experience, I also know when business definitions are concise and the application is simple, there’s more transparency among the team, and individuals have more clarity about what’s required of them to do to be more successful.
Finally, connected to these two terms, I have integrated these terms with two other articles:
- How we use the differences between Strategic and Creative Thinking, shown in the The Hourglass Figure, and
- How we turn general data into specific ideas, called The Information Chain
Analytical Thinking
Think about a time at work when you wanted to analyse something.
What did you do?
I will use a single invoice from a hypothetical vendor for this example.
If you analysed it, you would take away very precise detail, such as:
- Invoice number and date
- The purchase order from your company
- Description of goods purchased
- Price per unit
- GST or sales tax, including sub-total vs grand total
- Payment terms and instructions
Each individual piece of information is just one part of the larger whole.
For ex: the price is a sub-set of the invoice.
You extract some information, but not much. Frankly, it doesn’t tell you anything insightful.
In other words, Analytical Thinking is thinking inside itself.
All the information gained comes from the one original item. The picture to the right demonstrates what I mean.
Critical Thinking
I will use the same example of the vendor’s invoice, but try to use Critical Thinking this time.
The critical word is … well, critical. To be critical, you have to critique.
To critique, you have to compare or contrast one item against something else.
So, Critical Thinking requires two things: the original thing (ex: the first invoice) and something else (ex: a second invoice). I hope it’s obvious the two items to be compared should be similar: ‘apples vs. oranges’ as it were.
With two items, you can now compare and contrast them against each other.
By doing so, you get a lot more information.
- Invoice number and date,
- Hold on … why do these two invoices have the same invoice number? Is this an accidental copy, or …?
- The purchase order from your company
- Hold on … the second invoice doesn’t have a P.O. Why not?
- Description of goods purchased
- Hold on … the descriptions for the same items are different. Did we buy different things?
- Price per unit
- Hold on … the per unit costs have changed. Why did the goods in the second invoice have a higher cost?
- GST or sales tax, plus a grand total
- Hold on … The first one has GST inclusive. The second one has GST exclusive. Why the difference?
- Payment terms and instructions
- Hold on … Why are the payment terms different? We pay the first invoice in 30 days, but we pay the second in 45 days?
By comparing and contrasting – whether it’s information, insight, ideas or decisions – you can extract much more information.
In other words, Critical Thinking is thinking outside of itself.
The aspect of examining one thing against another thing allows you to decide if one is right or wrong, good or average, better or worst, preferable or undesirable, prettier or uglier, and on and on.
In Critical Thinking, you aren’t just looking at one thing, you’re looking at two things, or three, or more.
Exponentially I could be wrong, but Critical Thinking gives you at least “double” the information over Analytical Thinking.
Definitions for Analytical Thinking and Critical Thinking
Analytical Thinking breaks down a specific thing (a piece of information, insight, idea or decision) into smaller, discrete components or elements to better understand the whole.
By understanding the whole, you may be able to apply the learning to anything else. Analytical Thinking is thinking inside itself.
Critical Thinking evaluates or critiques a specific thing (a piece of information, insight, idea or decision) by comparing and contrasting it against something else to better understand it. Critical Thinking is thinking outside of itself.
Two important aspects:
One way of thinking is not better than the other. They both have benefits and drawbacks, like every other way of thinking, in business or not.
Second, and with due apologies for paraphrasing Walter Shewhart: Information without context is useless.
Some Questions to Get Started
Here are some general questions which may help you analyse and understand your thinking processes to produce the best outcomes, whichever style of thinking you choose.
Are you starting with the right goal? Who says? Is the goal ?
- If you can’t make your goal fully “SMART,” at least ensure your goal has a time specific element. Otherwise, when will you or anyone in your team try to achieve the goal? You don’t want the answer to be: “Whenever.”
Are you addressing the real problem? Are you sure it’s the problem and not the symptom? Are you solving the wrong problem?
Where are you gathering research? How do you know it’s a quality source? Are you gathering the ‘right’ research? Again, how do you know?
Are you only gathering information which you agree with, or supports your opinion? That’s bias, pure and simple, which means your solution will be as well. As a good rule of thumb, you should be trying to prove yourself wrong as often as you try to prove yourself right.
Are you analysing information deeply enough? Go beyond the first page of Google. Look for sources which might disprove each other. Try to understand why they disagree. (One of them likely has an agenda.)
Are you comparing/contrasting the right information? Apples to apples as it were, not apples to oranges.
Are you extracting a true insight? This is something my brilliant university professor John Bennett used to tell us. When you finish your research, put it down and push it away. Turn to any other trusted person and tell them what you learnt.
Also, here is what an insight is not. If anyone (including you) says: “Well, I knew that already” it’s not an insight.
More often than not, an insight is:
- Something new you learnt
- Something you didn’t know
- Something that surprised you
- Something that was unexpected
- Something you forgot but realised again how incredibly important that piece of information was
Are you generating enough ideas (even bad ideas)? The key is volume. You want as many ideas as possible to allow to work.
How are you selecting the best ideas? What are you using to pick the best idea? Does your criteria match what your decision maker or client might use?
Do your ideas actually address the business problem? If your idea doesn’t address the problem, it’s a bad idea.
Last, if you want a PDF of the large picture, click here.
How have you defined either Analytical Thinking or Critical Thinking in the past?
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