Critical Thinking in the Financial Services Sector

March 3, 2011New York, NY

Presenters: Judy Chartrand, Rupalli Thacker

• What is Critical Thinking?• Why is Critical Thinking Important for Finance Professionals• Where does Critical Thinking Fit in the Financial Services

Industry• How to Develop Critical Thinking in your Organization

– RED Model– T&D Solutions– Critical Thinking University (CTU)

Welcome and IntroductionsAgenda

Welcome and IntroductionsOur Moderator

Sean Stowers is the Director of Learning Services for Pearson Learning Solutions. He works with corporate and association clients to design and develop engaging solutions for their employees, candidates or members. Sean also served as a business development manager with Pearson’s FT Knowledge, a leading provider of training solutions to the financial services industry. He also spent four years at IBM in its Learning Services Division.

Welcome and IntroductionsPresenter

Judy Chartrand is the Consultant Chief Scientist at Pearson TalentLens where she works extensively with corporate and consulting clients, helping them implement assessment solutions that foster employee development, team building, retention, high potential engagement, career management, and succession planning. She received an Early Career Award from the American Psychological Association for her work in the career development field.

Welcome and IntroductionsPresenter

Rupalli Thacker is a Digital Products and Solutions Manager for Pearson Learning Solutions, working closely with corporate and association clients. Rupalli specializes in learning design, and new learning technologies. In her role as a products and solutions manager, Rupalli manages end-to-end learning solutions; and product design, and delivery. Her previous experience includes ten years in leadership skills development and four years in the elearning industry as a program manager.

Rupalli holds a MA in Learning Sciences from Northwestern University and an MBA from NMIMS, India.

Everyone thinks, but few think critically

From the C-suite to the front-line

Why is Critical Thinking so Critical?

Economy’s Shift to Service Jobs Requires More/Faster Decisions

And everyday we make decisions withimperfect & incomplete

information.

Is he…

• Asking the right questions?• Making sound assumptions?• Making good decisions?

Meet Jerry

Will they think about…

• Risks?• Uncertainty/complexity?• Consequences?• The Firms Clients? • The Bottom Line?

Meet Your New Employees

431 Employers Say New Employees Aren’t Thinking Critically

We Have a Critical Thinking Deficit

Yet It’s the #1 Workplace Skill

In a recent Grant Thornton Survey, 55% of respondents indicated that lack of soft skills -communication, critical thinking, problem solving abilities posed the most significant challenge in recruiting seasoned accounting professionals.

Critical Thinking in Financial Professions

What are the Drivers for Increasing Critical Thinking in Financial Professions?

• Globalization and Geopolitical Events

• New Products and Business Models

• Shifting and Complex Regulatory Environment

• Increasing Savvy and Skepticism of clients

ff

“These drivers require a deeper, more analytical approach to training

new leadership”

Tony Osude, Dir. Professional Development, Assoc. of Chartered Certified Accountants (ACCA)

• Strategic Thinking 64%• Leading Change 56%• Ability to Create Vision & Engage Others 54% • Ability to Inspire 47% • Understand total enterprise and 47% how different parts work together

Source: 2009/2010 Executive Development Trends Reporthttp://thinkwatson.com/downloads/2009-Development-Trends-Report.pdf

CriticalThinking

What Key Skills Do Emerging Leaders Lack?

Critical Thinking 101

A Framework for Better Thinking

Critical Thinking Means Many Things…

Improving Critical Thinking, Improves Other Skills

Raw Material for Other Competencies

Critical Thinking: Base of Competency Pyramid

• Strategic Thinking? • Innovation Management? • Dealing with Ambiguity?• Decision Quality? • …..

What are the Most Pressing Competency Development Needs in Financial Services ?

RED Model as a Critical Thinking Framework

Recognize Assumptions • Discerns facts from opinions.• Recognizes implicit assumptions

Evaluate Arguments • Evaluates information or arguments, focusing on relevant,

accurate information

Draw Conclusions • Arrives at conclusions that logically follow from the available

evidence

What is the RED Model?

Takeaway: Kennedy changed

the way he was briefed sothat assumptions would bechallenged early on.

RED Model in Action

Recognize Assumptions CIA believed• Cubans would rise up to support the effort• CIA could overthrow the Cuban • government based on past success (e.g.,

Guatemala, 1954)

Evaluate Arguments Kennedy reviewed the plan with his closest advisors – all favored invasion. Contrary views were not represented in the inner circle. During the campaign, Kennedy had criticized Eisenhower for not being proactive with Cuba.

Draw Conclusions Kennedy ordered the invasion, which was an immediate and costly failure.

Critical Thinking 201

How to Build a Thought-Based Organization

Can You Really Train People toThink Better?

Like golf, being good at thinking requires practice and feedback. Assessment helps you“see” your thinking soyou can improve it…

Yes, But Not Without Effort… and Practice

Applications: Selection Through Succession

Assess the critical thinking of successful performers to create a baseline (e.g., 50th percentile and above)

Compare it against the scores of your job candidates

Selection/Promotion: Create Success Profiles

Evaluate Impact on PerformanceFinancial Services Company

Source: 2009/2010 Executive Development Trends Reporthttp://thinkwatson.com/downloads/2009-Development-Trends-Report.pdf

T&D Priorities

A Leader’s Path in Your Company

Training Example Content Activities Support Actions

Group Training Program (6 sessions over 3-4 months)

Objective: Define critical thinking and how it impacts business

Identify current critical thinking capabilities

Increase critical thinking skills

Assessment Content:Watson Glaser II & Development Report

Webcast Content: Applied Critical Thinking: A 3-Phase Approach to Developing Problem Solving and Effective Thinkers (www.thinkwatson.com)

Reading Content:Critical Thinking Means

Business (thinkwatson.com/

learn-resources.php

Now You’re Thinking! Successful Managers’ Handbook (Thought Leadership section)

Video

Critical Thinking Channel(www.youtube.com/talentlens)

Goal Setting(WGII Development Plan)

Blogs: Critical-thinkers.comCritical Thinking in the Real World

Diverse Groups: team assignments

Coach/Manager: to support personal goals

Case Studies: within organization(problem solving, decision making)

Leaders as Teachers: (e.g., different functional heads lead analysis of case/situation/problem

Addressing Level 1

Development Report CTU

Developing Critical Thinking: Solutions

Critical Thinking Boot Camp

Phase 1: Assessment and Alignment; 2-4 weeks prior to workshop take assessment and meet with manager to identify high priority business challenges

Phase 2: Action Learning workshop (2 days); receive assessment results; learn critical

thinking techniques, development an action plan

Phase 3: Acceleration and Accountability; 1 month progress monitoring report out; communicate success out to organization

Critical Thinking Development Resources

• Internally developed course (e.g., previously mentioned materials)

• Critical Thinking University• Critical Thinking Boot Camp (2 days)• Custom Coaching by Executive Development Associates

The End Game of Better Performance

Critical Thinking Assessment & Training SolutionsSean Stowers: 917-215-5269 or sean.stowers@pearson.comJohn Frederick: 630-877-3766 or john.frederick@pearson.com

PresentationJudy Chartrand: 651-257-1833 or judy.chartrand@Pearson.com

Learn more at…www.ThinkWatson.com

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