Unlocking Success: Why Critical Thinking Reigns As The Ultimate Superpower

Collecting information, asking thoughtful questions, and analyzing possible solutions are key

Insider

Contributing Writer

Critical thinking is a tool everyone needs, regardless of their industry or job function. Defined as the act of analyzing facts and understanding the need, topic, or problem thoroughly in order to arrive at an informed solution, critical thinking is crucial. It’s more than a business skill, it’s also a life skill, but let’s stay focused on business.

Speaking of loan officers, many have been getting out of the business, as many report facing financial hardship and lacking business, per a study by payroll tech company Everee. According to the MBA, 12% of loan officers left the business in 2022, and 31% were planning to leave in 2023. This mass exodus leaves a gap for those who are left, but not every loan officer can fill every gap.

Being able to think critically can help you find where it makes the most sense to focus your business this year. Filling this gap in the industry is more than just picking a new loan product or group of buyers and spending all your time and effort there. In order to grow efficiently, loan officers need to understand their own unique situation and where they best fit in the big picture. Last month, we explored the importance of a SWOT analysis. Once the SWOT is done, loan officers will have a better picture of what they do best and where they need to focus their time to grow.

Critical thinking requires steps like collecting information, asking thoughtful questions, and analyzing possible solutions — and these steps can be used for any problem-solving scenario.

Ask Questions

The first step of critical thinking involves asking questions. No matter what problem you are solving, you need to understand it. Before you do anything else, gather as much data as you can. You need to have all the facts behind you in order to make an informed decision or recommendation. This is true for your borrowers and your business partners. Albert Einstein reminds us that “the important thing is not to stop questioning. Curiosity has its own reason for existing.”

In the case of finding where to focus your business, ask: Who am I serving? What are their needs? What are the most common types of transactions in my area?

Ask yourself if any buyer groups may be underserved. Why? Are there loan products that could help them? Maybe there is someone else who is already serving a particular group or offering a specific product. Look into how they are doing it. Find out if there are any lessons you can learn from them. This may include downpayment assistance programs or renovation programs to help with the ugly inventory.

Gathering all the data upfront is the most important step of critical thinking — no matter the issue.

Being able to think critically can help you find where it makes the most sense to focus your business this year.

Analyze

Now that you’ve gathered all the information, start thinking. This step is where you should start to make sense of the data you have. Consider all the information and how it may work together. When looking for where to grow your business, you can begin thinking about ways that your business can fit in with who you serve and what they need.

As you are analyzing, you may notice that some pieces of information don’t line up or work against each other. It may take time to make sense of all your data but don’t gloss over anything that is inconsistent or doesn’t make sense. Taking the time to understand all the facts ensures that you will end up with a well-informed decision at the end of the critical thinking process.

Once all the information is organized and you understand it, then you can move on to the final step.

Problem Solve

Problem-solving is the final step where you can begin strategizing. Once you’ve analyzed where your business fits, you can start creating a game plan for how you will reach a new set of borrowers or begin marketing a new loan product.

Whether you’re growing your business in a new area or simply working to improve your current offerings, critical thinking is a skill that will pay dividends. Asking questions, analyzing and problem-solving will ensure your decisions are based on facts rather than opinions or feelings. This year, I challenge you to use critical thinking across your business and beyond.