Most professions require a specific way of thinking that cannot be clearly defined and stems from the essence of each profession. We often hear terms like "engineering thinking," "mathematical thinking," or "medical thinking." It is unlikely that a specialist with a well-developed medical mindset will also excel in economic thinking. Sometimes we hear the expression, "a specialist by the grace of God." Does this mean that the talent of such a specialist also involves a special way of thinking? Is it possible to talk about a specific type of business thinking? Let's explore this topic further.
Business is multifaceted and complex. In business, there is no one-size-fits-all approach. In every situation, solutions are unique and depend on various and complex factors. Template thinking and attempts to apply approaches and methods that have worked well in other sectors can result in significant losses. Business schools and literature provide general knowledge and guidance, but they cannot address all practical situations. In practice, beyond knowledge, it is crucial to possess a business-specific mindset. An experienced entrepreneur with a well-developed business mindset but no specialized education can often make better decisions than a fresh MBA graduate.
WHAT IS BUSINESS THINKING
Broadly, business thinking is a specific way of thinking that helps managers achieve outstanding results in business. It has long been proven that this particular mindset differentiates highly successful businesspeople from the average. There are different types of business thinking, each responsible for specific areas and activities.
TYPES OF BUSINESS THINKING
- Marketing thinking – This represents a crucial mix of skills and mental abilities that manifest in:
a) the ability to "think in segments";
b) "customer orientation" (the ability to empathize with the customer);
c) understanding how different marketing tools interact with each other and complement one another, creating synergy;
d) the capacity to comprehend all ways the company interacts with the external environment (macro, sector, market).The ability to "think in segments" is imperative for marketing. Without proper segmentation, almost all marketing activities will be in vain, leading to significant losses or even business failure. Theodore Levitt emphasized this by stating, "If you don't think in segments, you're not thinking at all." Likewise, one of the most influential marketing professors, Peter Doyle, remarked, "If a company fails to segment the market, then the market will break the company into segments."
"Empathy in business" refers to the ability to understand everything about the customer: lifestyle, needs, preferences, behavior, specific demands, thought processes, etc.
Marketing is a vast and complex field that constantly evolves with technological advancements.
One of the most important functions of marketing is to study the external environment of the company, identifying threats and opportunities for business development. Given the complexity of marketing, marketing thinking is connected and interdependent with all the types of thinking described later.
- Entrepreneurial thinking – This is a set of beliefs and mental processes that enable entrepreneurs to face challenges, seize opportunities, and solve problems encountered in creating and managing a business.
Entrepreneurs succeed because they think differently than most people. They see opportunities and potential where most people see limitations and threats. Entrepreneurial thinking is characterized by positivity, courage, independence, responsibility, and the ability to learn from personal mistakes.
- Strategic thinking – This is the ability to generate strategic options, original ideas, and unique approaches aimed at exploiting business opportunities, creating sustainable competitive advantages, and ensuring the long-term sustainability of the business. Strategic management is the domain of top managers. Their hierarchical position and responsibilities obligate business leaders to continually develop strategic thinking.
- Tactical thinking – This involves quick thinking processes aimed at finding operational solutions to different business issues and achieving short-term business objectives. A manager with well-developed tactical thinking can anticipate competitors' moves and respond appropriately, thinking several steps ahead in all actions.
- Systemic thinking – Business operates as a complex system with many interconnected components. Systemic thinking allows leaders to see the big picture, understanding how each element interacts with others. This holistic approach ensures that decisions are made with full consideration of the overall business ecosystem.
- Critical thinking – In the world of business, information must be questioned and verified. Critical thinking helps managers and entrepreneurs challenge assumptions, analyze data, and identify flaws in arguments. It is crucial for making sound decisions based on facts rather than emotions or unproven theories.
- Creative thinking – In a constantly evolving business landscape, creative thinking is essential. It allows leaders to come up with innovative solutions, develop unique products, and create compelling marketing strategies. Creative thinkers break free from traditional patterns, find unexpected connections, and are unafraid to propose unconventional ideas.
- Logical thinking – Logical thinking helps business professionals analyze complex situations and find rational solutions. It requires objectivity and the ability to make decisions based on evidence, rather than assumptions or emotional reactions.
- Integrated thinking – This is the ability to balance two opposing models instead of choosing one model at the expense of the other. This approach allows for the creation of a creative solution that contains elements from several individual models while surpassing each of them. In business, integrated thinking facilitates the formation of business systems and models, the development of strategy, and the creation of synergies.
- Non-Standard thinking – Non-standard thinkers reject clichés and stereotypes, allowing them to find new approaches to problem-solving. This type of thinking is essential for innovation and helps businesses stand out in crowded markets. Managers with non-standard thinking dive deep into the essence of challenges and develop creative solutions.
- Analytical thinking (Analysis) – Analytical thinking involves breaking down complex problems into smaller components for better understanding of the problem. A skilled analyst can extract key information, identify patterns, and offer viable solutions. This methodical approach is vital for decision-making in all areas of business.
- Synthetic thinking (Synthesis) – The opposite of analysis, synthetic thinking involves combining individual components to create a cohesive whole. It helps leaders make generalizations based on specific observations and find overarching themes that guide business strategy.
- Abstract thinking (Abstraction) – This is the mental ability to highlight only the significant qualities of a phenomenon, ignoring unimportant details that merely complement the subject. Abstract thinking in business helps systematize information, create concepts, and distinguish between primary and secondary aspects. Often, abstract thinking becomes the engine of new discoveries and innovations.
- Concrete thinking (Concretization) – Concrete thinking works in tandem with abstract thinking. It brings abstract concepts back to reality by focusing on specifics and practical applications. Concrete thinkers ensure that business strategies are not just theoretical but also actionable and achievable.
- Alternative thinking – This is the ability to generate multiple alternatives and hold parallel, opposing opinions or viewpoints. This type of thinking facilitates choosing the best solution from several options. It helps leaders quickly pivot when a strategy fails, offering a flexible approach to decision-making that can adapt to unforeseen challenges.
INDIVIDUAL CHARACTERISTICS OF THINKING
Each person’s way of thinking is shaped by their personality, temperament, values and life experiences. For example, emotional instability and negativity can severely impact decision-making abilities, while confidence and positive thinking can enhance entrepreneurial success. Self-awareness and adaptability are crucial for business leaders, allowing them to recognize their thinking limitations and leverage the strengths of others to drive their businesses forward.
CONSEQUENCES OF LACKING CERTAIN TYPES OF BUSINESS THINKING
The absence of critical business thinking types can be detrimental. Below are some examples:
- Lack of strategic thinking. Without strategic thinking, leaders struggle to identify business development opportunities or plan for the future. They may waste resources on unimportant projects and fail to create a vision that inspires their team.
- Lack of marketing thinking. Managers that fail to think in segments risk treating the customers as a homogeneous mass, which can lead to ineffective marketing strategies. This type of thinking is vital for understanding diverse customer needs and maintaining competitiveness.
- Lack of systemic thinking. Leaders without systemic thinking often make linear decisions that do not consider the broader context. This can result in misdiagnosing problems and failing to implement necessary changes.
- Lack of alternative thinking. Managers who cannot generate alternative solutions may become stuck when their original plan fails, leading to stagnation and missed opportunities.
DOES DEVELOPED BUSINESS THINKING DIRECTLY IMPACT ENTREPRENEURIAL SUCCESS?
There are many examples of brilliant thinkers who have written books and developed innovative concepts in marketing and management, such as I. K. Adizes, M. Porter, E. Goldratt, C. Christensen, F. Kotler, H. Mintzberg, D. Traut, R. Kaplan, and D. Norton. Despite their intellectual contributions, none of them became highly successful businesspeople. However, many of them offer consultancy services to successful entrepreneurs and top managers in multinational corporations.
In my view, business success is not solely determined by genius thinking but rather by several key factors:
- Developed entrepreneurial thinking: Have you ever wondered what sets a highly successful entrepreneur apart from someone running a small business? The answer lies in a different mindset—entrepreneurial thinking. It’s not about having an exceptionally developed intellect but rather a unique way of thinking and approaching challenges. This type of thinking is crucial during the startup phase and early years of a business. As the business grows, however, entrepreneurs need other skills that they might not yet have developed.
- The ability to leverage others' talents: No successful entrepreneur builds a business alone. Success largely depends on the ability to surround oneself with talented individuals who offer complementary skills and ways of thinking. Bernard Arnault, for instance, is known not for his creativity but for his talent in attracting, motivating, and collaborating with highly creative people—a challenging feat, especially in the global luxury industry, where creative individuals often have "star personalities."
- A mix of soft skills and personality traits: These include qualities like character, risk tolerance, ambition, attitude toward failure, organizational skills, negotiation abilities, and energy level, all of which contribute to an entrepreneur's success.
- A favorable context (country, education, family, surroundings, and luck): Even if someone has genius-level business abilities, success still depends largely on context. For example, it’s difficult to imagine what Steve Jobs' fate would have been if his biological father, Abdulfattah Jandali, had not emigrated from Syria to the USA at the age of 18. Would Jobs have had the same success if he had worked in Syria? Unlikely. Similarly, would Donald Trump have become a billionaire and the President of the United States if he hadn’t come from a very wealthy family? Probably not. And when it comes to luck, would Jack Ma have become China’s richest man if he had succeeded in being hired as a policeman or accepted at Harvard (after applying seven times and being rejected each time)? These are just a few examples, and the list could go on.
WHAT CAN BE DONE?
Can a person develop a certain type of thinking? To some extent, yes. Typically, business thinking develops through lifelong learning and hands-on experience. However, certain types of thinking may come more naturally to some people due to genetic predispositions.
Can Almighty God grant someone genius abilities in all types of thinking? I believe it’s possible, though it does not happen. Since no one is perfect, a business leader or manager must first recognize their own limitations and understand that there’s always more to learn beyond what they already know. As Jeff Bezos wisely put it, "Smart people constantly revise their understanding of a problem they thought they had already solved. They are always open to new viewpoints, new ideas, and new information, and they constantly challenge their own thinking."
Self-awareness and self-criticism are key to success in business. Unfortunately, it's common for self-criticism to be replaced by arrogance or a sense of omniscience once someone gains wealth or experiences his/her first success, even if that success was partly due to good luck.
When entrepreneurs or managers realize they are not perfect, continuous practice and self-education become crucial. They also have several effective strategies to address their shortcomings:
- Team building: Developing a balanced team means ensuring that different types of thinking, knowledge, experience, and skills complement each other.
- Partnerships: Just like team formation, partnerships should be built with complementary talents and skills. Many businesses fail because partnerships are based solely on friendship, family ties, or personal liking.
- Training activities: These should aim to develop the mental abilities and skills needed to achieve strategic goals and should align closely with the specific needs of the business.
- Brainstorming sessions: These foster the generation of innovative solutions and ideas through the collective intellectual efforts of diverse specialists. They also contribute significantly to enhancing thinking abilities.
- External consultants: Bringing in external consultants and experts can be very helpful when the team lacks the necessary capabilities to complete a project or tackle key tasks. The more talented minds involved in a business, the better.
Business requires a diverse set of mental approaches, from strategic and analytical thinking to creative and entrepreneurial thinking. The absence of these essential thinking patterns can lead to poor decision-making, missed opportunities, and business failure. Developing and refining these skills, through continuous learning and practical experience, is crucial for navigating the complex and dynamic business landscape. Success, however, is not just about having genius-level thinking but also about building teams, leveraging the talents of others, and cultivating self-awareness. Ultimately, balancing personal growth with effective collaboration is key to sustained success in business.