Analytical Thinking is Not Just For Accountants

Good leadership requires multiple styles of thinking. Lots of people only have one style in their toolbox. This is not a good thing.

There are plenty of different ways of thinking about problems and opportunities at work, but for now, let’s consider two: “Warm and Fuzzy” and “Analytical.”

“Warm and Fuzzy” sounds dismissive, but it’s not. I happen to think W&F is critical in leadership. This is thinking that is based more on feelings, instinct, a “sense” of what is best or worst. It’s about starting with an idea and seeing where it leads. I think of people sitting around a table asking “what if…?”

Analytical thinking, though, is more about a process for getting to an answer about a specific issue, typically one that requires data and a clear knowledge of objectives and limitations. Instinct and experience may help you identify the exact questions you need to answer, but a process of clarifying those questions so they are measurable, identifying and collecting data, evaluating that data to reach some conclusions…that’s a bit more involved than just sitting around a table voicing opinions.

Consider this example: let’s say that business is bad, and the time has unfortunately arrived to let some people go. You are in a meeting with the rest of the leaders and the question “how do we handle the layoffs?” comes up.

Now, there are lots of elements to this question, but let’s consider two:

 
– How do we tell people they are being let go?

– What kind of severance package can we offer?
 

When you are deciding how to handle the notifications, that calls for Warm and Fuzzy thinking. You are concerned about things like helping employees retain their dignity, “survivors’ guilt” among those who were not retrenched, security, and minimizing the disruption in the office. In this case, it is totally appropriate to be thinking through examples, offering opinions based on past experience, and taking into account your knowledge of individual employees. That’s Warm and Fuzzy thinking.

But when you start considering what kind of severance package to offer, that’s where rational analysis comes into play. How much money do you have available? How much will different options cost you? If current salary is the basis for the decision, where can you get that info for every employee? What you do in this case is going to be based more on what you are fiscally able to do, rather than just on what feels right. It’s not as impersonal or unfeeling as it may sound, it merely addresses opportunities and challenges that exist in a way that can help you move you toward the best answer.

For many people who transition into a leadership role for the first time, analytical thinking may not be the normal style of thinking. This is especially true in creative industries. Just because it is not the way you’d normally do things, though, does not mean you don’t need to do it. You do, and so you need to know how, and this is a skill you should focus on developing if you expect to be a leader someday or if you find yourself in a leadership position and less prepared than you would like to be. As a leader you need to be prepared for different situations that call for different talents. You do yourself no good if you are only prepared to respond one way.