7 proven stages of First Principles Thinking for Better Decisions

I have been the victim of wishful thinking too many times. However, I must admit that I have excitedly jumped into building products and partnerships, only to realize halfway down the track that I had missed some critical thinking.

Then I found the idea of First Principles Thinking. First principles thinking is a method of problem-solving that involves breaking down complex problems into their fundamental building blocks and understanding them at a basic level.

First principles thinking is powerful because it allows one to break down complex problems and understand their fundamental building blocks. This compelling breaking down allows for a deeper understanding of the problem and the ability to create novel solutions that may not immediately be obvious by relying on preconceived notions or past experiences.

Additionally, by starting with the first principles, you can be sure that your understanding of the problem is grounded in reality and not based on assumptions or guesses. This clear view can lead to more efficient and effective solutions and a remarkable ability to adapt to new information and changing circumstances.

This approach can also help to avoid getting stuck in local maxima. In this situation, an individual or organization is satisfied with a suboptimal solution because it seems reasonable or familiar.

Mastering First Principles Thinking

In the episode, we get inspiration from a wide array of smart thinkers: Elon Musk, Garry Tan, and Pieter Thiel.

Elon has made First Principles a far more popular approach. The CEO of SpaceX and Tesla is known for his ability to break down complex problems and build solutions from the ground up using the first principles of thinking.

Albert Einstein was a theoretical physicist known for using the first principles of thinking in his work on the theory of relativity.

"The important thing is not to stop questioning. Curiosity has its own reason for existing. One cannot help but be in awe when he contemplates the mysteries of eternity, of life, of the marvelous structure of reality. It is enough if one tries merely to comprehend a little of this mystery every day. Never lose a holy curiosity." Albert Einstein

Richard Feynman is a theoretical physicist known for using first principles thinking in his work on quantum mechanics and for his ability to explain complex scientific concepts in simple terms.

Aristotle is a Greek philosopher known for using the first principles of thinking in his works on logic, metaphysics, and ethics.

Here is a step-by-step guide to First Principles Thinking:

Step 1: Identify the problem or question you want to solve.

Step 2: Break down the problem or question into its most basic elements. This deconstruction will help you to understand the issue at a deeper level and to identify any underlying assumptions or misconceptions.

Step 3: Ask "why" questions to continue breaking down the problem or question. This questioning will help you understand the root causes of the pain and identify gaps in your knowledge.

Step 4: Identify any known facts or laws relevant to the problem. This analysis will help you to understand the situation in the context of the current state of knowledge and to identify any limitations or constraints that may impact your solution.

Step 5: Develop a hypothesis or a set of possible solutions based on the information you have gathered. This work will help you understand the problem and identify potential solutions or opportunities.

Step 6: Test your hypothesis or solutions. This testing will help validate or disprove your understanding of the problem and identify potential issues or challenges.

Step 7: Iterate and refine your understanding of the problem and your solutions. This iteration will help you improve your knowledge of the problem and identify potential opportunities or areas for further exploration.

It's important to note that this process is not always linear; you may need to go back to previous steps to re-evaluate your understanding of the problem or explore new solutions. Additionally, you may need to repeat the process multiple times, as the problem or question may evolve and change over time.

First principles thinking applies to various areas of life, from personal decision-making to business and science. It's a powerful tool to help you to understand complex problems and to identify novel solutions.

If you want to go deeper into First Principles Thinking, dive into these books.

1. "First Principles: What America's Founders Learned from the Greeks and Romans and How That Shaped Our Country" by Thomas E. Ricks - This book explores how the founders of the United States applied first principles thinking in the creation of the country's political and legal systems.
2. "The Great Mental Models: General Thinking Concepts" by Shane Parish - This book is by Shane Parrish, the founder of Farnam Street, a website and podcast dedicated to helping people improve their decision-making and critical thinking skills. The book aims to provide a framework for understanding the most powerful mental models for thinking and problem-solving.