Hi,
I had promised to write about Reasoning by First Principles or First Principles for short. So here I am to pay up.
First Principles is a decision making mental model that focuses on fundamentals. That is when you strip all the fluff, it is what is left without which the core tenets of the issue or argument fall flat.
Aristotle defined it as “the first basis from which a thing is known.” It is foundational thinking without which a thing is not that thing.
I find that it’s easiest to explain stuff using stories or analogies. I’m going to be using Elon Musk and SpaceX as a case study to explain First Principles. Moreover, there is no better person really to use as he is the poster child for First Principles thinking plus he is a brainiac so it makes sense to understand one of the core principles he applies to achieve such out of this world success in business literally.
By the way, if you haven’t heard of Elon Musk, you are most definitely living under a rock and we need to fix that ASAP here
Storytime: Elon Musk decides that space travel shouldn’t be left for only rocket scientists and astronaut type folk and says mere mortals should also be able to visit space. In order to achieve this taking humans to Mars vision, he needs rockets. So, he goes shopping for rockets and finds them to be ridiculously expensive.
He paused, stepped back and began thinking about what really made up a rocket, he listed parts like aerospace-grade aluminium alloys, carbon fibre, copper and titanium. He looked up the prices of these materials in the commodity market and found them to be quite cheap comparatively. In fact, the materials cost just 2% of the going price of a rocket.
He then decides that he will start building his own rockets, (having taught himself how to build rockets by the way) and viola SpaceX was born.
Mr Musk was applying First principles thinking when he decided to look closely at what really makes a rocket. Stripping it down to its fundamentals as Aristotle says “the first basis from which a thing is known.” He questioned the basis for which rocketship is known without which it can’t be called a rocketship.
Breaking things down like that made him realise that he could still take people to Mars by not buying already made rockets that were too expensive but by assembling the parts and building them himself.
First-principles thinking can also be said to be getting to the physics of things. Physics teaches the irrefutable back to basic scientific principles of how the universe works without bells and whistles.
Applying First Principles To Life.
I understand we are all not “crazys” like Elon Musk and not trying to build rocket ships to take people to Mars neither are we interested in rehashing secondary school physics but whether you are minding your business and facing your job or trying to whip your children into shape first principles thinking applies there and everywhere.
There are the sensibilities of physics in every aspect of our lives and decision-making processes.
I will use another story as an illustration. A friend of mine was telling me about another friend who said that if her friends don’t patronize her business then they are not her friends.
When I heard this, my first thought was here is someone that doesn’t understand the first principles of business, be it a product or a service business.
It’s ok for your friends to buy your stuff in the beginning to support, I would do that but I won’t make a repeat purchase if I don’t like the product or service or if it doesn’t meet my needs.
What are the First Principles in business? It has to meet a need.
Some people get carried away and focus on fluff, fluff which while cute almost doesn’t add anything to the promise of the product. You see beautifully packaged products and amazing ads but the product falls flat.
These schemes could get people through the “door” but it won’t keep them coming back if the “substance” isn’t good enough.
So instead of the lady guilt-tripping her friends, she should focus on the fundamentals that form the core of her offering and make them so good that her friends (and others) will buy from her not just because they are her friends but because the product is great. They won’t buy from anyone else if (1) they need that product, and (2) hers is the best available.
In the same vein, if you are a parent, ask yourself what does it really fundamentally mean to be a parent? What does my child need from me? If we did this exercise we will find that the “physics” of parenting doesn’t lie in stuff like designer clothes, fancy holidays and the latest gadgets.
It will look more like being present, teaching them core values such as empathy, integrity, hard work and everything that will make them well adjusted and balanced adults of the future.
First Principles thinking would also help you challenge assumptions, prevent groupthink and herd mentality. You will be able to think for yourself by questioning those things that we have just “gone with the flow” with. Those things that you have been told: “it is just how it’s done or “it’s just the way it is”.
So whether you are in a relationship, a CEO, an employee, etc find out what the First Principles are for you, once you do, you will see that you will start focusing on high-value activities within your own context.
Happy Zigzagging,
Ije
Extras:
For the extra curious, here is an interview of Elon Musk where he talks about how himself, his outlook on life and of course how First Principles govern his decision-making. For those that what to “cheat” and listen to just the part where he talks about First Principles, it’s here.
In other news, I recently read this absolutely delightful book A Gentleman in Moscow by Amor Towles. It has easily become one of my favourite books. The writing style, humour, storytelling and human moments….. I highly recommend it.
I like I like I like!!! these weekly zigzags bring a lot really help me think differently about a lot of things in life. Thanks Ije
Asking ourselves really why we do what we do will gear one towards an inner peace, satisfaction, will to go on and relieve one of the tension and pressures of living life on the whims of others and society. Good one doc.