Adaptive Thinking has been defined here as the capacity to recognize when a course of action that may have previously been effective is no longer effective and there is need to adjust strategy. Research was undertaken with human test subjects to identify the factors that contribute to adaptive thinking. It was discovered that those most effective in settings that call for adaptive thinking tend to possess a superior capacity to quickly and effectively generate possible courses of action, as measured using the Category Generation test. Software developed for this research has been applied to develop capabilities enabling analysts to identify crucial factors that are predictive of outcomes in fore-on-force simulation exercises.