The Impact of Critical Thinking Skills on Executive Leadership

Why Critical Thinking Is invaluable for Leaders and their Teams

The Bay of Pigs Invasion: A Lesson in Groupthink

In 1960, John F. Kennedy was elected president. His early months in office were smooth, but in the spring of 1961, the Bay of Pigs Invasion unfolded—a failed attempt by anti-Castro activists, covertly financed and directed by the U.S. government, to overthrow Fidel Castro’s regime.

What’s less known is that the mission failed due to groupthink—the tendency to surround oneself with like-minded individuals, limiting alternative solutions to challenges.

Groupthink isn't just a political issue; it happens in workplaces when organizations fail to create a culture that encourages challenges and diverse perspectives.

The Pitfalls of Groupthink in Leadership

Kennedy’s advisors believed the mission would succeed, but they fell into several critical traps:

  • Lack of a safe space for challenge – There was pressure to conform to Kennedy’s viewpoint.
  • Failure to consider all challenges and alternatives – Risks were not deeply analyzed.

Despite a room full of strong-willed individuals, no one questioned the consensus.

Kennedy’s Turning Point: The Cuban Missile Crisis

To his credit, Kennedy learned from failure. After a complete debrief, he changed his decision-making approach.

Fast-forward to October 1962—the Cuban Missile Crisis erupted when the Soviet Union placed nuclear missiles just 90 miles from U.S. shores. This was another high-stakes international crisis, but this time, Kennedy and his team applied critical thinking skills, negotiated effectively, and averted catastrophe.

Kennedy later admitted that lessons from the Bay of Pigs helped him avoid groupthink and analyze situations with greater care, leading to well-reasoned and vetted solutions.

Why Critical Thinking Is Invaluable for Leaders and Their Teams

Even great leaders can fall into traps, but great leaders also learn from mistakes. By changing their approach and fostering a better culture, they can make smarter decisions and thrive.

What Is Critical Thinking?

The Foundation for Critical Thinking defines it as:

“... 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.”

Put simply, critical thinking is the ability to think clearly and rationally about what to decide and believe.

How Do Leaders Benefit from Critical Thinking Skills?

According to The Nth Degree, an online publication by Newman University, the top five workplace skills today are:

  1. Complex problem-solving
  2. Critical thinking
  3. Creativity
  4. People management
  5. Coordinating with others

Leaders who excel in critical thinking can:

  • Understand logical connections between ideas
  • Identify, construct, and evaluate arguments
  • Detect inconsistencies and errors in reasoning
  • Reflect on and challenge personal beliefs
  • Assess the importance and relevance of information
  • Solve problems systematically

Real-World Application in the Insurance Industry

Critical thinking is especially valuable in industries like insurance, where leaders face complex decisions daily. Consider these scenarios:

  1. A senior account manager must analyze a diverse client portfolio, prioritize tasks, and maximize value.
  2. A producer needs to evaluate the firm’s capabilities and services to win a new account.
  3. A claims consultant receives pushback from a carrier and must analyze evidence to devise a winning strategy.
  4. A hiring committee must vet candidates objectively to avoid bias and select the best fit.
  5. An executive team faces a potential acquisition—a game-changing decision that requires careful risk assessment.

Every decision—whether small or high-impact—demands analytical skills to cut through the noise and focus on facts and reasoning.

What Prevents Us from Using Critical Thinking?

Despite its importance, many leaders struggle to apply critical thinking consistently. The challenges fall into two main categories:

1. External Factors

  • Speed & Productivity Pressures – Leaders often feel overwhelmed and make quick decisions rather than taking the time to think critically.
  • Information Overload – The abundance of data and opinions makes it hard to distinguish fact from fiction.

However, speed and critical thinking do not have to be mutually exclusive. People rarely regret taking extra time to make the right decision, but they do regret poor decisions made in haste.

2. Internal Factors: Heuristics & Biases

  • Heuristics – Mental shortcuts that help with everyday tasks but can lead to flawed decision-making under pressure.
  • Cognitive Biases – Psychological tendencies, such as conformity bias, where people align with the majority instead of voicing independent opinions.

To improve critical thinking, leaders must recognize biases and heuristics—and develop strategies to counteract them.

How to Implement Critical Thinking in the Workplace

If you want to embed critical thinking into your organization, follow these four stages of adoption:

1. Awareness

  • Discuss external and internal influences that hinder critical thinking.
  • Create a culture that rewards diverse perspectives and constructive debate.
  • Reinforce that making smart, well-reasoned decisions is a core value.

2. Discipline

  • Provide tools and resources to encourage disciplined decision-making.
  • Implement checklists and peer reviews to challenge assumptions.
  • Balance the need for efficiency with the importance of thorough analysis.

3. Habits

  • Build consistent decision-making habits within teams.
  • Shift from conscious effort to automatic application of critical thinking skills.
  • Ensure that critical thinking becomes a natural part of workflows.

4. Culture

  • Make critical thinking part of the company’s DNA.
  • Encourage fact-based decision-making over anecdotal reasoning.
  • Recognize and reward employees who challenge groupthink and propose alternative solutions.

This shift takes time, but once habits solidify, they become core to the organization’s identity.

Key Takeaways

  • Critical thinking is a mindset that relies on analysis, reasoning, and logic.
  • Heuristics and biases can lead to flawed decision-making—but awareness helps mitigate their impact.
  • The four levels of adoption—awareness, discipline, habits, and culture—can help teams integrate critical thinking into their daily work.
  • Using structured tools like checklists can reinforce effective decision-making.

To help get started, here is a critical thinking checklist you and your team can use for smarter decision-making.

by Gordon Zellers, Ed.D.