The gist of it:

First principles thinking is a problem-solving and decision-making approach that involves breaking complex issues or concepts down to their fundamental, foundational elements. It encourages examining a problem from its most basic components to gain a deeper understanding and arrive at innovative solutions.

How to use it:

We use first principles thinking to clarify complicated problems by separating the underlying facts from any assumptions based on them. What remains are the essentials.

It is the cycle of breaking a problem or situation down into the core pieces and then putting them all back together in a more effective way.

Deconstruct then reconstruct.

Applying first principles to any problem requires you to ask:

What do we know that is absolutely true? What has been proven?

What is the most efficient way to solve this problem if I started from scratch?

For example:

Assumption: “I just can’t find enough time to workout and achieve my weight loss goals.”

Applying first principles:

Weight loss happens when there is a caloric deficit - i.e. To lose weight, you need to eat and drink fewer calories than you burn.

What do you really need to reach your weight loss goal? Either eat less or exercise more, preferably both.

If time is a constraint, could you still lose weight exercising less frequently, if so how?

Instead of exercising for 30 mins, 5 days a week, perhaps you could try 15 minute high intensity workouts, 3 days a week that will speed up your fat loss in less time. At the same time, implementing a more stringent diet that reduces your daily caloric intake.

Deep Dive

First principles thinking, which is sometimes called reasoning from first principles, is one of the most effective strategies you can employ for breaking down complicated problems and generating original solutions.

In 2002, Elon Musk founded SpaceX with a grand vision to make space exploration more accessible and affordable.

He ran into a major challenge right off the bat. After visiting a number of aerospace manufacturers around the world, Musk discovered the cost of purchasing a rocket was astronomical—up to $65 million. Given the high price, he began to rethink the problem.

“I tend to approach things from a physics framework,” Musk said in an interview. “Physics teaches you to reason from first principles rather than by analogy. So I said, okay, let’s look at the first principles. What is a rocket made of? Aerospace-grade aluminum alloys, plus some titanium, copper, and carbon fiber. Then I asked, what is the value of those materials on the commodity market? It turned out that the materials cost of a rocket was around two percent of the typical price.”

Instead of buying a finished rocket for tens of millions, Musk decided to create his own company, purchase the raw materials for cheap, and build the rockets himself. SpaceX was born.

Within a few years, SpaceX had cut the price of launching a rocket by nearly 10x while still making a profit. Musk used first principles thinking to break the situation down to the fundamentals, bypass the high prices of the aerospace industry, and create a more effective solution.

Applying first principles thinking to a new problem involves a systematic approach to break down the problem into its fundamental components and build a fresh understanding from the ground up.

Here's how to go about it:

1. Define the Problem Clearly:

   • Start by articulating the problem or challenge you want to address. Ensure you have a precise and well-defined understanding of what you're trying to solve.

2. Identify Assumptions:

   • List any assumptions, beliefs, or preconceived notions related to the problem. Recognize that some assumptions may need to be challenged.

3. Deconstruct the Problem:

   • Break the problem down into its fundamental components. Ask yourself, "What are the most basic, undeniable facts or principles related to this issue?"

4. Separate Information from Interpretation:

   • Distinguish between objective information and interpretations. Often, our understanding of a problem is clouded by our interpretations and judgments.

5. Question Everything:

   • Challenge each component of the problem. Ask "why" repeatedly to get to the root causes and fundamental principles. For example, if you're dealing with a business problem, ask why certain processes are in place, why certain products or services are offered, and so on.

6. Seek Analogies:

   • Consider whether there are similar problems in other domains or industries that have been solved using first principles thinking. Analogies can provide insights.

7. Leverage Existing Knowledge:

   • Draw from your existing knowledge and expertise in relevant areas, but make sure you're not relying solely on existing solutions or assumptions.

8. Rebuild from the Ground Up:

   • Once you've broken down the problem and questioned its components, start rebuilding your understanding and potential solutions from the fundamental principles you've identified.

First principles thinking is a powerful way to approach complex problems with fresh eyes and uncover innovative solutions that might not be apparent when relying solely on conventional thinking.

It encourages a deep, foundational understanding of the issues at hand and can lead to more effective and creative problem-solving.

Sources:
First Principles: The Building Blocks of True Knowledge
First Principles: Elon Musk on the Power of Thinking for Yourself
Behind Elon Musk’s Management Philosophy: First Principles