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Our hominid ancestors constantly had to solve problems related to survival. They had to find food, water, shelter, and protection from predators. They also had to keep peace within the group and defend themselves and their groups against attacks by competing groups. If they did not solve these problems sufficiently, they died—whereas those who successfully managed the entire range of problems prevailed. But the demands of survival changed constantly. Only groups that adapted and improved their survival techniques in the face of constantly shifting environmental pressures became our more recent ancestors—the ultimate winners in the race for survival. From an ancestral point of view, critical reasoning means being able to solve a wide range of problems effectively. In a modern business context, critical reasoning, or business reasoning, involves (a) accurately forecasting sequences of events in and outside of one’s organization, (b) recognizing when those forecasts do and do not apply, and (c) making appropriate business decisions based on those forecasts. Read More »

One of the primary tasks of leadership is to effectively and efficiently allocate an organization’s resources. In business, this requires leaders to make critical decisions that ultimately determine the success or failure of the organization. However, making good business decisions alone is not enough to guarantee success. Effective leaders must also have the interpersonal skills to get along with others and build high-performing teams. Both critical reasoning skills and interpersonal skills are effective predictors of performance. Logically then, employers who care about job performance should want to know two things: do my employees make good decisions and do they have the interpersonal skills to effectively function? The best way to answer these questions is by using assessments. Cognitive assessments, such as the Hogan Business Reasoning Inventory (HBRI), are some of the most robust predictors of job performance. Any job that requires solving problems, evaluating the consequences of various solutions, or weighing solutions against each other can benefit from cognitive assessments that accurately measure one’s critical reasoning skills. Effective critical reasoning requires three things: A clear-minded view of the problem – Too often leaders spend time solving the wrong problem or problems that aren’t actually problems at all. A rational analysis of possible solutions to the problem – Some solutions are bound to be more effective than others, so being able to analyze those solutions rationally and objectively is important. An accurate forecast of each solution’s consequences – Some solutions may cause future problems, so the cost and impact of the various solutions must be considered. Read More »