Critical Thinking Leading Innovation and Value Creation Andrew Urich, J.D. Legal Studies in Business Oklahoma State University

Critical Thinker? I am a hypocrite. I play favorites. I interpret rules in a way that benefits me. I have been known to ignore rules that get in my way. I like people better if they like me.

Critical Thinker? I like my ideas better just because they’re mine. I think it’s fun to say “no” when I have the power to do so. You cannot change how I see the world. I say I like change– but I like things the way they are. I don’t even know 1/10 th of 1% about anything, but I think I know everything.

Critical Thinker? I like to be “right.” I love to say “I told you so.” I hate to admit I’m wrong even in those rare situations when it looks like I might be. Here’s how I make decisions: I decide what I want the answer to be – and then make up the logical reasons to support my decision.

Why is Decision Making So Difficult?

What Happened to GM?

What is Art?

Déjà vu All Over Again?

Why is Charlie Sheen an Actor?

What is the Secret to Happiness?

What Does It Mean To Think?

The Corvette Case

Critical Thinking Keys to parenting Oil prices Is college the key to success?

What is Critical Thinking? 1. Making decisions and taking action based on reason, evidence and analysis. 2. Detect and avoid thinking traps. 3. Reflect on the justification of one's own beliefs and values. 4. Understand the logical connections between ideas. 5. Metacognition: thinking about thinking.

What is Critical Thinking? Using your brain to create value for yourself and your organization!

Critical Thinking “There is no reason anyone would want a computer in their home.” President of world’s second largest computer company (DEC) arguing against the PC in 1977

Critical Thinking “The world potential market for copying machines is 5000.” IBM turning down the eventual creators of Xerox

Critical Thinking “I think there is a world market of about five computers.” Founder of IBM in 1943

Critical Thinking “Who the hell wants to hear actors talk?” Warner of Warner Brothers arguing against the need to add sound to silent movies

Critical Thinking Obama and McCain spent $1 Billion on their 2008 campaigns – Absurd? Coca-Cola spent almost $2 billion trying to get us to drink sugar water in 2008.

Critical Thinking “Sensible and responsible women do not want to vote.” President Grover Cleveland, 1905

Critical Thinking “We don’t like their music and guitar music is on the way out anyway.” Decca record executive turning down the Beatles, 1962

Critical Thinking “Television won’t last because eventually people will get tired of staring at a plywood box every night.” Daryl Zanuck, 20th Century Fox Movie Producer, 1946

Critical Thinking “Everything that can be invented has been invented.” Commissioner of US Patent Office arguing to President McKinley to close down the Patent Office in 1899

Why Don’t They Give Us an Owner’s Manual For Our Brain?

The Brain’s Inner Workings The Wiring 100,000,000,000 neurons (brain cells) 15,000 synaptic connections each By age 15 half are gone and the superhighways are up and running. These mental pathways become the filter–producing recurring patterns of thinking, feeling and behavior. Examples: Empathy–confrontation–authoritarian– dogmatic–emotions–tolerance for uncertainty.

The Brain’s Inner Workings The Parts The brain is full of zero sum games Ever find yourself feeling conflicted? Competing modules MRI research on picturing yourself as old Stanford study No payments until 2010 Railway switch Parts of the brain Amygdale-fear responses Fleeing the stock market like you are fleeing a lion Prefrontal cortex – recently evolved – controls voluntary actions Logical and analytical Limbic system - oldest physical part of the brain The rat brain – Impulses gut reactions

Amygdale: Fear Responses Total US Stock Market 1982 value = $1.2 Trillion Return 1982 to % Theoretical 2007 value $28.2 Trillion Actual value $18.7 Trillion Lost to market timing $9.5 Trillion NASDAQ 9.6% Return 1973 – % Actual average return to NASDAQ investor Zweig, Jason, Money Magazine, December 2007, page 76

Your Talent Talent is a recurring pattern of thought, feeling, or behavior that can be productively applied. Talent is more important than experience, brainpower, and willpower. You cannot teach talent.

Your Talent What to notice, what to ignore What to love, what to hate Your motivations, ego, altruism How you think - practical or strategic Your attitude - optimistic or cynical Your filter is your talent

The Talent of Great Accountants Innate love of precision Happiest moment is when the books balance Gallup survey

Using Your Brain Your Unique Talent + Critical Thinking = Success Your value and ability to prosper and reach your goals come from: “sensing, judging, creating, and building relationships.” Thomas Stewart, Intellectual Capital We all have the same information – it’s what you do with it that counts.

Punch-line Early in life we get theories of the world – the theories make sense – but making sense is not the same as being correct. Beware of your Brain’s wiring! Your brain is programmed

Right Brain Rising Daniel Pink Challenges:  Cheaper overseas?  Computer faster?  Is what I am offering in demand in the age of abundance? Create value in the future:  Design-- Artistic or emotional beauty (IPod)  Story  Synthesize (GM)  Relationships  Play– Humor  Meaning

Using Your Brain Applications Exploit your talent! Don’t correct weaknesses, work around them. Skills and knowledge can be taught, talent cannot. Here’s what we can change! Core beliefs New skills and knowledge Your values Self-awareness Capacity for self-regulation Hidden talents

“Our minds are like inmates, captive to our biology, unless we manage a cunning escape.” Nassim Taleb The Black Swan