the importance of logic in business
DESCRIPTION
Delivered for logic and critical thinking course at Institut Teknologi Bandung's School of Business Management (SBM-ITB).TRANSCRIPT
INTRODUCTION www.linkedin.com/in/goutama
Presenter Profile 15 years of experiences: 12 years of Training and Education, 8
years of IT Audit, 7 years of strategic partnership, 8 years of
writing and development, 6+ years of consulting and project
management
Advisor at Global Innovations and Technology Platform
VP - Head of Information Technology at Roligio Group
Subject Matter Expert at ISACA
Program Evaluator at Project Management Institute
Association of Educational Communication and Technology
International Division Committee
Contributor for ZDNet Asia, Forbes Indonesia, Youth Marketers,
e27.co, The Jakarta Post, DetikINET and InfoKomputer among
others
Today’s Agenda
Redefining Logic
Why Important?
Common Sense
Ways of Thinking
Logic in Business
Why so Important?
Logic Competency
in Business
Redefining Logic
No relevancy with gender, age issues
Result yielded from human brain
Driven by skeptical and critical state-of-
mind then raised critical thinking
To have a common ground about
something
Why Important? Human is “Ubermensch” (Nietzsche, 1944)
Help us learning to think properly
Focus our mind so we can come up with a logical
solution
More rational in our decisions
Helps other understand reasoning behind issues which
could be applied in other issues as well
Common Sense Determines what we do, regardless of what we think
For if we use logic alone, we would probably be able to
take only a few actions a day
Helps us to deal with real world complexity
Provides shortcut to making critical decisions very
quickly
Sometimes will produce desired results whenever we
need to make a decision quickly, but not always
Ways of Thinking
Trainable, programmable (method,
technique)
Some are: Out-of-the-box, Critical,
Strategic, Lateral, Programmatic
Independent from human brain capacity
Involved big and little, left and right brain
Thinking Out-of-the-Box Encompasses 1.5kg, 1200cm3, 86 billion neurons and
16.3 billion cerebral cortex human brains
Against mainstream
Brings creativity and even more innovation
Within inside VS outside the norm
Critical Thinking
“A desire to seek, patience to doubt,
fondness to meditate, slowness to assert,
readiness to consider, carefulness to
dispose and set in order; and hatred for
every kind of imposture.” – Francis Bacon
(1605)
Critical Thinking (cont’d) Primarily concerned with judging true value of statements
and seeking errors
“Your MAP is NOT your TERRITORY” – Richard Bandler
and John Grinder NLP Co-Founders (1979)
Common Stages
1. Identify, define and clarify the problem
2. Gather information
3. Evaluate information
4. Choose the best alternative and present them
5. Implement the solution
Strategic Thinking
• Ability to see the total enterprise, to spot the trends and
understand the competitive landscape, to see where
the business needs to go and to lead it into the future
• Needs strong foundation of critical thinking
Thinking process applied by an individual in the context
of achieving success in particular endeavor
Mostly utilized for or within strategic planning process
Strategic Thinking (cont’d)
Lateral Thinking Popularized by Psychologist Dr. Edward de Bono
(within his book, 1975)
Logical ('vertical') thinking carries a chosen idea
forward, sideways ('lateral') thinking provokes fresh
ideas or changes the frame of reference
Lateral Thinking (cont’d)
Programmatic Thinking
Trending due to Neuro-Linguistic Programming (NLP) Richard Bandler and John Grinder
How to program our minds with our words
Targets unconscious minds in particular
Sublimed and in the end change our behavior
Logic in Business Consists of unwritten rules, which set up a framework
for companies’ mode of action and possibilities for
custom-oriented actions.
Sloan Jr. (1950, p 58) ”There is a logical way of doing
business in accordance with the facts and
circumstances of an industry… ”
Then what need to do? Understand, adapt to it or to
break with it, thereby creating something new
Way of thinking utilized by business executives
Why So Important? Part of business decision making process
Utilized for scientific approach
Objective, waive the subjectivity
Solid, firm baseline
Arguable, debatable
Requires for quantitative analysis
Complements qualitative analysis
Why So Important? (cont’d)
Understanding the logic in business
and reasoning behind a given aspect
of reality
We may be able to adapt, grow,
leverage and capitalize using the
same reasoning particularly in
challenging situation
Why So Important? (cont’d) Logic link cause to effect, action to reaction and input to
output in business world
By finding result, we use logic to analyze
Basis of learning methodology and decision making
Bad logic link effect to false cause (“Fallacy”)
Catalyst of reason, the foundation of experimentation
and the weakness of a lie
Why So Important? (cont’d)
When applied in strategic management
process, it involves generation and
application of unique business insights and
opportunities
In the end, it is aimed to form competitive
advantage of an organization
Done individually or collaboratively to shape
organization’s future
Logic Competency in Business
Citing Jeanne Liedtka (1998)
Systems perspective
Understand implications of strategic actions and has
complete end-to-end system of value creation, his or
her role within it
Intent focused
To marshal and leverage their energy, to focus
attention, to resist distraction, and to concentrate at the
max achieving a goal
Logic Competency in Business (cont’d)
Thinking in time
Hold past, present and future in mind at same time
creating better decision making and speed
implementation
Hypothesis driven
Ensuring creative and critical thinking incorporated into
strategy making
Intelligent opportunism
Being responsive to good opportunities
11 March 2014
Q & A
THANK YOU!