Difference between revisions of "First Principles Thinking"

Revision as of 19:40, 13 June 2022

First-principles thinking is one of the best ways to reverse-engineer complicated problems and unleash creative possibility. Sometimes called “reasoning from first principles,” the idea is to break down complicated problems into basic elements and then reassemble them from the ground up. It’s one of the best ways to learn to think for yourself, unlock your creative potential, and move from linear to non-linear results. This approach was used by the philosopher Aristotle and is used now by Elon Musk and Charlie Munger. It allows them to cut through the fog of shoddy reasoning and inadequate analogies to see opportunities that others miss.^[1]

First Principles Frameworks^[2]
Here are three frameworks that will help you to start practicing thinking from First Principles.

1. Socratic Questioning

Clarifying your thinking and explaining the origins of your ideas. Why do I think this? What exactly do I think?
Challenging assumptions. How do I know this is true? What if I thought the opposite?
Look for evidence. Why do I think this is true? What are the sources?
Consider alternative perspectives. What might others think? How do I know I am correct?
Examine the consequences and implications. What if I am wrong? What are the consequences if I am?
Question the original questions. Why did I think that? Was I correct? What conclusions can I draw from the reasoning process?

It helps to figure out several important things. First, find the origins of your idea. Is it based on your assumptions? Can you find data to prove its viability? Second, consider symmetrically different perspectives to understand possible consequences. Lastly, conclude and move up from there.

2. Elon Musk's First Principle Reasoning Framework Elon Musk was one of the first to popularize reasoning from first principles. This approach led him to discover opportunities for his new companies SpaceX and Tesla, which made him the richest person in the world in 2021. It was not until Elon started up SpaceX when the whole aerospace industry shifted. Before, every company took an approach of incremental change and improvement before his intervention. The existing technologies have been improved and tinkered with since the mid of the 20th century. To gain insight, he asked the following questions.

What are the problems?
Why is it expensive?
What can I do differently?
What do we know is true?
What are the obstacles?

Nobody assumed to reduce the cost of rocket production and launches. First principles reasoning led him to discover that production cost can be significantly reduced. He deconstructed the problem into its foundational principles and built his solution from the bottom up. Elon Musk's 3-step framework

Identify current assumptions.
Break down the problem into its fundamental principles.
Create new solutions from the discovered truth.

This framework provides a solid structure to deconstruct a problem and test different solutions. If you have an idea, try to apply Elon's framework to gain insight and find secrets that thinking by analogy would not allow.

3. Five Whys Framework Children naturally think in first principles. They ask questions until they get to the bottom of it and understand the foundations. It is essential to align the knowledge of the world with reality as closely as possible. Wrong assumptions could threaten the chances of survival in the past. Unfortunately, most of the parents get annoyed by constant questioning. They either do not know the proper answer or think that a child can not understand the complexity of the world. Therefore, the most popular answer among parents is "Because I said so".

Every question peels a layer off until you find out an episode in the childhood where that reaction was born. It is a powerful way of thinking. Once you make it a habit, you will learn to apply it in other areas of your life.

First Principle in BusinessCite error: Closing </ref> missing for <ref> tag
First principles thinking can be easy to describe, but quite difficult to practice. One of the primary obstacles to first principles thinking is our tendency to optimize form rather than function. The story of the suitcase provides a perfect example.

In ancient Rome, soldiers used leather messenger bags and satchels to carry food while riding across the countryside. At the same time, the Romans had many vehicles with wheels like chariots, carriages, and wagons. And yet, for thousands of years, nobody thought to combine the bag and the wheel. The first rolling suitcase wasn’t invented until 1970 when Bernard Sadow was hauling his luggage through an airport and saw a worker rolling a heavy machine on a wheeled skid.

Throughout the 1800s and 1900s, leather bags were specialized for particular uses—backpacks for school, rucksacks for hiking, suitcases for travel. Zippers were added to bags in 1938. Nylon backpacks were first sold in 1967. Despite these improvements, the form of the bag remained largely the same. Innovators spent all of their time making slight iterations on the same theme.

What looks like innovation is often an iteration of previous forms rather than an improvement of the core function. While everyone else was focused on how to build a better bag (form), Sadow considered how to store and move things more efficiently (function).

↑ Definition - What does First Principles Thinking mean? Farnam Street
↑ First Principles frameworks Ayk Martirosyan

[1] Definition - What does First Principles Thinking mean? Farnam Street

[2] First Principles frameworks Ayk Martirosyan

[1]

[2]

@@ Line 87: / Line 87: @@
 **What is causing the problem?
 **What are the counter arguments for the problem?
-*Break down problem: Breaking the problem down allows you to look at the fundamental elements of the problem. Elements that if taken apart will give you a better idea of how to work things out. Think of it like a Lego construction. Taking pieces apart one by one, will yield building blocks (fundamental elements) that allows you to build something new. However, before doing so, you will need to make sure to create a blueprint of the current construction (continuing with the Lego example). Take the construction apart. Look at all the elements. Once you have done that you can go to the next stage to see whether you can improve the blueprint, create a complete new-one, demolish it and so on. During this stage a reward assessment is important. The way you could assess that is by asking three different questions. What happens if you do something, if you do not and if you ignore it. Needless to say, if nothing happens with all three scenarios you will need to go back to a different problem and reiterate.
+*Break down problem: Breaking the problem down allows you to look at the fundamental elements of the problem. Elements that if taken apart will give you a better idea of how to work things out. Think of it like a Lego construction. Taking pieces apart one by one, will yield building blocks (fundamental elements) that allows you to build something new. However, before doing so, you will need to make sure to create a blueprint of the current construction (continuing with the Lego example). Take the construction apart. Look at all the elements. Once you have done that you can go to the next stage to see whether you can improve the blueprint, create a complete new-one, demolish it and so on. During this stage a reward assessment is important. The way you could assess that is by asking three different questions. What happens if you do something, if you do not and if you ignore it. Needless to say, if nothing happens with all three scenarios you will need to go back to a different problem and reiterate. As with the two previous stages, this is referred to as the why stage. Like before, this is not necessary to frame the question, but a why question digs deeper and breaks down the problem to the point where we cannot explain things further. Questions that can help you through are below, remember to ask why after each question:
-As with the two previous stages, this is referred to as the why stage. Like before, this is not necessary to frame the question, but a why question digs deeper and breaks down the problem to the point where we cannot explain things further. Questions that can help you through are below, remember to ask why after each question:
 **What is the essential part of the problem?
 **What do we believe is the smallest part of the problem?
@@ Line 131: / Line 130: @@
 *Question the questions: The last part is reviewing the total process you have gone through. You can question any of the previous phases and see if you have covered things that has not occurred before. During this stage, it is important to question the process, problem, clarification, break down and solution. If improvements need to be made, reiterate. If everything seems water proof, you can conclude and execute.
 Despite how rational it sounds to think from first principle, it is not always the best way to go about problems. Companies are generally entities that are already efficient. Some companies or departments will undoubtedly be more efficient than others, but there are always tradeoffs when approaching things from first principle. Moreover, using first principle does not always yield positive or efficient results. Questioning everything (why) can sometimes result in unsatisfactory answers, wherein a company can conclude there is not much they can do about a problem. Furthermore, if that type of thinking is incorporated in a company without consequences, it can lead to a company that experiences the dreadful analysis paralysis.
+'''The Challenge of Reasoning From First Principles'''<ref>The Challenge of Reasoning From First Principles [https://jamesclear.com/first-principles James Clear]</ref><br />
+First principles thinking can be easy to describe, but quite difficult to practice. One of the primary obstacles to first principles thinking is our tendency to optimize form rather than function. The story of the suitcase provides a perfect example.
+In ancient Rome, soldiers used leather messenger bags and satchels to carry food while riding across the countryside. At the same time, the Romans had many vehicles with wheels like chariots, carriages, and wagons. And yet, for thousands of years, nobody thought to combine the bag and the wheel. The first rolling suitcase wasn’t invented until 1970 when Bernard Sadow was hauling his luggage through an airport and saw a worker rolling a heavy machine on a wheeled skid.
+Throughout the 1800s and 1900s, leather bags were specialized for particular uses—backpacks for school, rucksacks for hiking, suitcases for travel. Zippers were added to bags in 1938. Nylon backpacks were first sold in 1967. Despite these improvements, the form of the bag remained largely the same. Innovators spent all of their time making slight iterations on the same theme.
+What looks like innovation is often an iteration of previous forms rather than an improvement of the core function. While everyone else was focused on how to build a better bag (form), Sadow considered how to store and move things more efficiently (function).