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Thinking Strategically & Critically:

Seeing Possibilities


Jane Dysart     jane@dysartjones.com
Rebecca Jones   rebecca@dysartjones.com
Let’s explore:

 • What strategic & critical thinking is
 • Why it’s important for our decision-making, problem-
  solving & designing solutions
 • Identifying & avoiding traps, trips & landmines that foil
  our decision-making…..maybe even disarming them?
 • Experiences
 • Characteristics required
                         www.dysartjones.com for slides & worksheets
“in making decisions, you may be at the mercy of your mind’s
                     strange workings….”
        Hammond, Keeney & Raiffa, The Hidden Traps in Decision Making, Harvard Business Review,
                                                                                   January 2006
Strategic Thinking
Critical Thinking: formal definition

  “ the intellectually disciplined process of actively and
   skillfully conceptualizing, applying, analyzing, synthesizing,
   and/or evaluating information gathered from, or generated
   by, observation, experience, reflection, reasoning, or
   communication, as a guide to belief and action.”




Critical Thinking as Defined by the National Council for Excellence in Critical Thinking, 1987
A statement by Michael Scriven & Richard Paul at the 8th Annual International Conference on Critical Thinking and Education Reform,
Summer 1987}. http://www.criticalthinking.org/page.cfm?PageID=766&CategoryID=51 Last accessed May 31, 2009
Critical thinking is really about




             •   Decision-making & problem-solving
             •   Designing solutions
             •   Open-mindedness
             •   Productive dialogue
Implicit that we can’t make
  decisions alone or in a
  vacuum or in the same
  way we always have

The decisions & problems we
 face are increasingly
 complex

 It’s hard, and it’s worth it
Good Strategic & Critical Thinking
 • Raises the right questions – clearly & precisely
 • Focuses on the real problem or decision to be taken
 • Gathers & assesses relevant information
   ▫ Uses abstract ideas to interpret info effectively
 • Develops well-reasoned conclusions & solutions, testing
   them against relevant criteria and standards
 • Relies on recognizing & assessing assumptions,
   implications, & consequences
 • Communicates effectively with others in figuring out
   solutions to complex problems
Critical, not criticize
Why?
 • For our customers
   • Design meaningful solutions fitting their
    behaviours
 • For our organizations
   • Planning, negotiating, managing & relationship building

 • For ourselves, and our professional credibility
   • Aware & factor in our :
     • tendencies & assumptions
     • perceptions & selections based on conditioning,
       beliefs and desires, focus, emotions
     • reconstructive memory affected by time, what we
       want to remember, and after-acquired information
       and suggestion.
   • Confident in our:
     • knowledge
     • ability to reason
Wake up call


“Set in our ways” won’t move us forward

“Naming” the process at first makes it legitimate to:
  Challenge usual practices
  Rethink what has been thought
  Expand the emphasis from short-term fixes to long-
   term fusion
Common Decision Traps
•    Framing
•    Status quo
•    Anchoring
•    Sunk cost fallacy
•    Information gathering traps
•    Overconfidence bias
•    Availability
•    Confirmation bias
•    Generalization
•    False cause
    Based on the work of Michael B. Metzger, Kelley
    School of Business, Indiana University
Framing
 • Put the frame up first
   ▫ Clarify status-quo, anchor &
     sunk-costs
 • The questions we ask
   very often determine the
   type of answers we get
                                    So……..
                                    • Don’t accept the first frame – or
                                      question
                                    • “re-frame” or look at the issue
                                      from different perspectives,
                                      particularly from customer or
                                      stakeholder perspectives
Status-quo
• Like it or not, tendency is
  to perpetuate what we
  already know
• Psychologically risky
  ▫ “breaking from the status
    quo means taking action,       So…….
    and when we take action,       • Focus on the real goals & ask
    we take responsibility, thus     how status quo helps move
    opening ourselves to             towards them
    criticism and to regret.”      • Evaluate vs. all other
     Hammond, Keeney,               alternatives IN TERMS OF
       Raiffa                        THE FUTURE
                                      ▫ Ask outsiders to review your
                                        evaluations      Kennedy & Jones, 2009
Anchoring
 • What we hear or see first
   influences our
   subsequent thinking
   ▫ Past statistics & trends, an   So…….
     article, a colleague’s         • Be aware
     comment
                                    • Purposefully use different starting
   ▫ The order in which we            points
     receive info distorts our
                                    • As you gather other people to
     judgment
                                      discuss the issue, try to limit the
                                      information you give them
                                       ▫ Clarity what your “attachments”
                                         are
                                       ▫ Keep coming back to the issue on
                                         which you are focusing Kennedy & Jones, 2009
Sunk cost
• People want to justify
  past decisions,
  regardless of how
  present & future
  change the situation
     Some cultures             To avoid:
      reinforce this by         • Consciously set aside past
      punishing decisions         investments
      that haven’t turned out      ▫ a rational decision is based on
      as planned                     current assets & future
                                     consequences
                                • Stop “sinking” costs into “sunk”
                                  costs
                                • Reward turn-arounds & “try’s”
                                                           Kennedy & Jones, 2009
“When you find yourself in a hole, the
best thing you can do is stop digging.”
                   Warren Buffet
For a group to get to clarity they
have to wade through confusion
Hello Confusion? This is conflict speaking
21




Know your own conflict handling style
                                                        Thomas-Kilmann
                                                        Conflict Mode Instrument
                  Competing             Collaborating
  Assertiveness




                              Compromising




                   Avoiding            Accommodating
                                                             Mary Lee Kennedy
                                                             Harvard University




                                Cooperativeness
Cowardly lions aren’t very useful:




       Thx Frank for your slide (he’s Vice Chancellor for Information Services at Purdue University Calumet.
Experience:


• How critical & strategic thinking drives different
  outcomes




• Mary Lee Kennedy, “The art of critical thinking”
  Information Outlook June 2010
• Jane Dysart (who?)
Curiosity rarely, if ever kills the cat
Seeing Opportunities:

A pessimist sees the difficulty in every
 opportunity; an optimist sees the
 opportunity in every difficulty
  Winston Churchill



Gaps/Openings = Opportunities
Peripheral Vision

Peripheral Vision: Seven Steps to Seeing Business
  Opportunities Sooner by George S. Day & Paul J. H.
  Schoemaker, Harvard Business School Press, 2006

Offer tools & strategies for building "vigilant orgs" that are
 constantly attuned to changes in the environment

1st 5 steps focus on directly improving the process of
  receiving, interpreting and acting on weak signals from
  the periphery
Sources of Ideas



•   Examine your own skill set
•   Keep up with current events
•   Invent a new product or service
•   Add value to or improve an existing product
•   Investigate other markets
•    Get on the bandwagon
Let’s try it out:
 • First 10 minutes on your own
   – Prepare your decision approach for either Case 1 or
     Case 2

 • Next 10 minutes with your colleague or
   someone beside you
   – Talk through your plan or approach with each other
   – Advise each other on critical thinking delivery (good
     practice/decision traps)


 • Next 10 minutes discussing our experiences
   – Challenges, affirmations, ah ha’s!
Group Exercises
Case one:                            Case two:

• Your budget will be 10% less       • You have an idea for a new
  for the next financial year.         service you want to offer to
• 80% of your current budget is        your customers. You know
  staff, 15% is content, the other     there isn’t any more funding
  5% is for various                    available but you think it is
  administrative costs (travel,        really important to make a
  training, phones, supplies).         case for it.

• Put together an approach for       • Put together a plan for making
  making the decision of how to        the case to proceed with the
  work within this budget.             service
In your partner discussions,

• What surprised you when you had to think about
  critical thinking practices and avoiding decision-making
  traps?
• What challenges do you recognize you’ll have using this
  approach?
• What will you do differently in making decisions?
• What more do you want to know so that you can do this
  better?
• How will you apply this starting now?
Manage carefully – it’s new

• Disagreement must be incited & managed
  ▫ Once conflict becomes too intense people shut down
• Organizational culture must encourage questioning,
  especially of decision-makers’ assumptions &
  propositions
Critical characteristics

• Communication skills
  ▫ Listener
• Self-awareness & self-
  acceptance
• Curious, interested &
  questioning
• Admits lack of valid
  information or understanding
• Assesses & evaluates
  information & propositions for
  their value on the issue at hand
What’s critical?

• Awareness

• Disciplining your decision-making to uncover thinking
  errors & prevent judgment errors

• Curiousity

• Trying it
If you’re interested, try:

The Critical Thinking Community
  http://www.criticalthinking.org/articles/Open-minded-inquiry.cfm
• Kramer, R. M., A. E. Tenbrunsel, and M. H. Bazerman, eds. Social Decision
  Making: Social Dilemmas, Social Values, and Ethical Judgments. Routledge, in press.
• Bazerman, Max, and D. Moore. Judgment in Managerial Decision Making. 7th ed.
  John Wiley and Sons, Inc., 2008.
• Milkman, Katherine L., Max H. Bazerman, and Dolly Chugh. "How Can
  Decision Making Be Improved?" Perspectives on Psychological Science (in press).
  Abstract
• Raiffa, Howard, John S. Hammond, and Ralph L. Keeney. "The Hidden Traps in
  Decision Making." HBR Classic. Harvard Business Review 84, no. 1 (January 2006).
• Hammond, John S., III, Ralph L. Keeney, and Howard Raiffa. Smart Choices: A
  Practical Guide to Making Better Decisions. Boston: Harvard Business School Press,
  1998. (Paperback: Broadway Books, 2002;
Thank you




              jane@dysartjones.com
            rebecca@dysartjones.com

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Thinking strategically & critically: seeing possibilities

  • 1. Thinking Strategically & Critically: Seeing Possibilities Jane Dysart jane@dysartjones.com Rebecca Jones rebecca@dysartjones.com
  • 2. Let’s explore: • What strategic & critical thinking is • Why it’s important for our decision-making, problem- solving & designing solutions • Identifying & avoiding traps, trips & landmines that foil our decision-making…..maybe even disarming them? • Experiences • Characteristics required www.dysartjones.com for slides & worksheets
  • 3. “in making decisions, you may be at the mercy of your mind’s strange workings….” Hammond, Keeney & Raiffa, The Hidden Traps in Decision Making, Harvard Business Review, January 2006
  • 5. Critical Thinking: formal definition “ the intellectually disciplined process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from, or generated by, observation, experience, reflection, reasoning, or communication, as a guide to belief and action.” Critical Thinking as Defined by the National Council for Excellence in Critical Thinking, 1987 A statement by Michael Scriven & Richard Paul at the 8th Annual International Conference on Critical Thinking and Education Reform, Summer 1987}. http://www.criticalthinking.org/page.cfm?PageID=766&CategoryID=51 Last accessed May 31, 2009
  • 6. Critical thinking is really about • Decision-making & problem-solving • Designing solutions • Open-mindedness • Productive dialogue
  • 7. Implicit that we can’t make decisions alone or in a vacuum or in the same way we always have The decisions & problems we face are increasingly complex It’s hard, and it’s worth it
  • 8. Good Strategic & Critical Thinking • Raises the right questions – clearly & precisely • Focuses on the real problem or decision to be taken • Gathers & assesses relevant information ▫ Uses abstract ideas to interpret info effectively • Develops well-reasoned conclusions & solutions, testing them against relevant criteria and standards • Relies on recognizing & assessing assumptions, implications, & consequences • Communicates effectively with others in figuring out solutions to complex problems
  • 9.
  • 11. Why? • For our customers • Design meaningful solutions fitting their behaviours • For our organizations • Planning, negotiating, managing & relationship building • For ourselves, and our professional credibility • Aware & factor in our : • tendencies & assumptions • perceptions & selections based on conditioning, beliefs and desires, focus, emotions • reconstructive memory affected by time, what we want to remember, and after-acquired information and suggestion. • Confident in our: • knowledge • ability to reason
  • 12. Wake up call “Set in our ways” won’t move us forward “Naming” the process at first makes it legitimate to: Challenge usual practices Rethink what has been thought Expand the emphasis from short-term fixes to long- term fusion
  • 13. Common Decision Traps • Framing • Status quo • Anchoring • Sunk cost fallacy • Information gathering traps • Overconfidence bias • Availability • Confirmation bias • Generalization • False cause Based on the work of Michael B. Metzger, Kelley School of Business, Indiana University
  • 14. Framing • Put the frame up first ▫ Clarify status-quo, anchor & sunk-costs • The questions we ask very often determine the type of answers we get So…….. • Don’t accept the first frame – or question • “re-frame” or look at the issue from different perspectives, particularly from customer or stakeholder perspectives
  • 15. Status-quo • Like it or not, tendency is to perpetuate what we already know • Psychologically risky ▫ “breaking from the status quo means taking action, So……. and when we take action, • Focus on the real goals & ask we take responsibility, thus how status quo helps move opening ourselves to towards them criticism and to regret.” • Evaluate vs. all other  Hammond, Keeney, alternatives IN TERMS OF Raiffa THE FUTURE ▫ Ask outsiders to review your evaluations Kennedy & Jones, 2009
  • 16. Anchoring • What we hear or see first influences our subsequent thinking ▫ Past statistics & trends, an So……. article, a colleague’s • Be aware comment • Purposefully use different starting ▫ The order in which we points receive info distorts our • As you gather other people to judgment discuss the issue, try to limit the information you give them ▫ Clarity what your “attachments” are ▫ Keep coming back to the issue on which you are focusing Kennedy & Jones, 2009
  • 17. Sunk cost • People want to justify past decisions, regardless of how present & future change the situation  Some cultures To avoid: reinforce this by • Consciously set aside past punishing decisions investments that haven’t turned out ▫ a rational decision is based on as planned current assets & future consequences • Stop “sinking” costs into “sunk” costs • Reward turn-arounds & “try’s” Kennedy & Jones, 2009
  • 18. “When you find yourself in a hole, the best thing you can do is stop digging.” Warren Buffet
  • 19. For a group to get to clarity they have to wade through confusion
  • 20. Hello Confusion? This is conflict speaking
  • 21. 21 Know your own conflict handling style Thomas-Kilmann Conflict Mode Instrument Competing Collaborating Assertiveness Compromising Avoiding Accommodating Mary Lee Kennedy Harvard University Cooperativeness
  • 22. Cowardly lions aren’t very useful: Thx Frank for your slide (he’s Vice Chancellor for Information Services at Purdue University Calumet.
  • 23. Experience: • How critical & strategic thinking drives different outcomes • Mary Lee Kennedy, “The art of critical thinking” Information Outlook June 2010 • Jane Dysart (who?)
  • 24. Curiosity rarely, if ever kills the cat
  • 25. Seeing Opportunities: A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty Winston Churchill Gaps/Openings = Opportunities
  • 26. Peripheral Vision Peripheral Vision: Seven Steps to Seeing Business Opportunities Sooner by George S. Day & Paul J. H. Schoemaker, Harvard Business School Press, 2006 Offer tools & strategies for building "vigilant orgs" that are constantly attuned to changes in the environment 1st 5 steps focus on directly improving the process of receiving, interpreting and acting on weak signals from the periphery
  • 27. Sources of Ideas • Examine your own skill set • Keep up with current events • Invent a new product or service • Add value to or improve an existing product • Investigate other markets • Get on the bandwagon
  • 28. Let’s try it out: • First 10 minutes on your own – Prepare your decision approach for either Case 1 or Case 2 • Next 10 minutes with your colleague or someone beside you – Talk through your plan or approach with each other – Advise each other on critical thinking delivery (good practice/decision traps) • Next 10 minutes discussing our experiences – Challenges, affirmations, ah ha’s!
  • 29. Group Exercises Case one: Case two: • Your budget will be 10% less • You have an idea for a new for the next financial year. service you want to offer to • 80% of your current budget is your customers. You know staff, 15% is content, the other there isn’t any more funding 5% is for various available but you think it is administrative costs (travel, really important to make a training, phones, supplies). case for it. • Put together an approach for • Put together a plan for making making the decision of how to the case to proceed with the work within this budget. service
  • 30. In your partner discussions, • What surprised you when you had to think about critical thinking practices and avoiding decision-making traps? • What challenges do you recognize you’ll have using this approach? • What will you do differently in making decisions? • What more do you want to know so that you can do this better? • How will you apply this starting now?
  • 31. Manage carefully – it’s new • Disagreement must be incited & managed ▫ Once conflict becomes too intense people shut down • Organizational culture must encourage questioning, especially of decision-makers’ assumptions & propositions
  • 32. Critical characteristics • Communication skills ▫ Listener • Self-awareness & self- acceptance • Curious, interested & questioning • Admits lack of valid information or understanding • Assesses & evaluates information & propositions for their value on the issue at hand
  • 33. What’s critical? • Awareness • Disciplining your decision-making to uncover thinking errors & prevent judgment errors • Curiousity • Trying it
  • 34. If you’re interested, try: The Critical Thinking Community http://www.criticalthinking.org/articles/Open-minded-inquiry.cfm • Kramer, R. M., A. E. Tenbrunsel, and M. H. Bazerman, eds. Social Decision Making: Social Dilemmas, Social Values, and Ethical Judgments. Routledge, in press. • Bazerman, Max, and D. Moore. Judgment in Managerial Decision Making. 7th ed. John Wiley and Sons, Inc., 2008. • Milkman, Katherine L., Max H. Bazerman, and Dolly Chugh. "How Can Decision Making Be Improved?" Perspectives on Psychological Science (in press). Abstract • Raiffa, Howard, John S. Hammond, and Ralph L. Keeney. "The Hidden Traps in Decision Making." HBR Classic. Harvard Business Review 84, no. 1 (January 2006). • Hammond, John S., III, Ralph L. Keeney, and Howard Raiffa. Smart Choices: A Practical Guide to Making Better Decisions. Boston: Harvard Business School Press, 1998. (Paperback: Broadway Books, 2002;
  • 35. Thank you jane@dysartjones.com rebecca@dysartjones.com