Understanding and Applying First Principles Thinking: A Comprehensive Guide

Unlocking (Real) Innovation: A Deep Dive into First Principles Thinking

Dive into First Principles Thinking—a transformative approach to problem-solving. Break free from conventional norms to foster innovation and clarity.

To ignite the spark of innovation and find new solutions, we need a radical shift in the way we approach problems. That’s where First Principles Thinking comes in, a method that has its roots in philosophy but is highly relevant to today’s most pressing challenges.

At its core, First Principles Thinking is about breaking down complex concepts, problems or beliefs into their fundamental components. Rather than relying on analogies, precedents, currend methods or conventional wisdom, this method encourages us to dive deep into the essence of a problem (“the real problem”), free of bias or preconceived notions. By breaking a problem down into its fundamental elements, we can take a fresh perspective and innovate from the ground up – element by element.

So lets take a dive deep into the world of First Principles Thinking and explore its origins, nuances, application, and associated challenges. When applied correctly, we give ourselves a powerful tool – one that fosters creativity, creates clarity, and drives forward thinking and enables totally different perspectives.

So why should we rethink the way we think? And how can First Principles Thinking reshape our approach to the myriad challenges we face? I will tell you now more in the coming sections.

What is First Principles Thinking?

First Principles Thinking is a problem-solving and decision-making method that breaks down complex ideas, problems, or processes into their fundamental components. Rather than relying on analogies, learned standards, conventional wisdom, or precedents, this method requires to dive deep into the core of the problem to understand its fundamental elements and components. From this basic understanding, we can then reconstruct a solution or idea from scratch without the limitations of assumptions and biases.

Origins and History of First Principles Thinking

First Principles Thinking may sound modern and innovative, but it has its roots deep in ancient philosophy. The term “first principles” can be traced back to Aristotle’s works. Aristotle believed in the concept of identifying the “first foundation” from which a thing is known. Essentially, this means understanding something at its most fundamental level – “at the root of the problem,” so to speak

Since the principle is logical and also easy to follow, it is not surprising that over time many thinkers and inventors have used this method implicitly. Nowadays, the principle is again in “trend” by advocates such as Elon Musk. For Musk, the process involved reducing things to their fundamental truths and thinking from there. This approach was crucial to his ventures, especially SpaceX, whose goal was to reduce the cost of space travel by rethinking the rocket or its use from the ground up. More on this later.

Why would you want to use First Principles Thinking?

If you can think freely without “bias” and without “bias” and you are allowed to kcompletely re-solve the problems, then some solutions come to mind. The “we have always done it this way” can be very dangerous, especially for companies that have a great history and have not really thought about the basic problems for a long time. Henry Ford once said that customers would have wanted faster horses if you asked them, but the fundamental problem underneath was really just a faster means of transportation. So when you think about it, you shouldn’t think about horses or cars but why people need locomotion in the first place, what the problems of locomotion are, and what personal problems are on the way from point A to point B.

But if we look at the basic benefits we find 3 big assumptions where First Principles Thinking can be applied and why it is a great methodology for everyone:

  1. Can be applied in any industry and every problem: First Principles Thinking is not limited to any one area. From the intricacies of scientific research to strategic business decisions and personal growth aspirations, its application is broad. By challenging existing models and beliefs, it creates space for breakthrough discoveries and innovative solutions.
  2. Perfect for innovation and creativity: When we get assumptions out of the way and rely on fundamental truths, we are no longer constrained by existing models or paradigms. This paves the way for creativity and allows us to see problems and solutions in a new light. It’s a direct challenge to the phrase, “This is the way it’s always been done,” and challenges us to think, “How can it be done differently and more efficiently?”
  3. Clarity and decision making: First Principles Thinking offers not only innovation, but also clarity. When we understand the core of a problem, decision making becomes more transparent. The noise of superficial complexity is eliminated and decisions can be made based on truth and understanding. Just ask yourself “is it really solving the problem?”

Process of First Principles Thinking

Intrinsically, it seems almost obvious how First Principles Thinking works. But as simple as the principle seems, the more difficult it is to implement.

  1. Identify the (real) problem: Everything starts with clarity. Before you begin your analysis, you must clearly define the problem or concept you are addressing. This provides the roadmap for the steps that follow and ensures that efforts are properly focused. It might be hard to identify the real problem as you need to go beyond what you think is “obvious” (just think about the faster horses problem of Henry Ford)
  2. Break down the problem: When you identified a real problem to be solved, then it is about breaking down the problem. What are the individual components of the problem or idea? What are connected/interconnected problems? This step may involve research, interviews, and a thorough understanding of the problem. This process can take a lot of time and sometimes comes after many iterations. So be patient.
  3. Analyze the basic components: After the problem has been analyzed, the next step is to understand the fundamental elements that have been uncovered and how they are connected/triggered. At this point, the difference between assumptions and fundamental truths becomes critical. Each component is examined, questioned, and understood in its purest form and you need to question all of your assumptions at any given time. Always ask yourself “Is it true?” or “Is it just what I think?”.
  4. Reassemble the information: After this extensive task, you should have a clear understanding of the basic elements and the connections between them. The final step is synthesis of this information. Here the problem or idea is reconstructed from a new perspective and you start to look for the right solutions to address these components and problems. Because only with a deep understanding the fundamental truths as building blocks, new solutions, new business models, or insights can emerge. In this recomposition phase, REAL innovation thrives because one is no longer bound by traditional models or assumptions and you focus on the pure problem instead of assumptions.

Psychological Challenges of First Principles Thinking

So the process is simple, just take a problem. Go there and look for the “real problem” you want to solve. Then decompose it into the basic components and then figure out how to solve the components in a new way. Sounds easy, right?

But there are many many many obstacles when it comes to really following these steps and it takes a lot of training and also active participation to make it work because a shortcut (“the existing assumption”) is always there and your brain doesn’t like working hard when there might be a short cut.

So lets look into some of the most prevalent challenges, blockers and how to solve them

Cognitive Efforts – “It feels exhausting”

  • Cognitive load: Incorporate first principles Thinking is not a walk in the park. It requires significant cognitive resources. Analyzing basic elements and constantly challenging assumptions can be mentally taxing, especially when compared to more heuristic methods that require less active processing.
  • Overcome mental laziness: Humans, by nature, often seek the path of least resistance. Our brains are wired to conserve energy, leading us to prefer familiar patterns and shortcuts. First Principles Thinking challenges this by requiring active, deliberate thinking.
  • Mindset shift: Moving from conventional to innovative thinking requires a fundamental shift in mindset. One must no longer take information at face value, but constantly question and challenge the status quo.

Cognitive biases – “Don’t trust your own thoughts”

  • Confirmation bias: One of the biggest obstacles to using a first-principles approach is our inherent tendency to look for information that confirms our pre-existing beliefs. This bias can hinder genuine exploration and confirmation of fundamental truths.
  • Status quo bias: This bias is the innate preference for the current state of affairs. People resist change, and deviation from what is known and comfortable is often met with resistance, both internally and externally.
  • Anchoring bias: When people are confronted with new information, they often rely heavily on the first piece of information they receive. This “anchor” can bias subsequent analysis and decision making, making it difficult to move on from initial perceptions.

Overcoming assumptions – “Why do I believe this?”

  • Challenging established beliefs: It can be uncomfortable to challenge long-held beliefs or social norms. There is mental friction in questioning something you have always accepted as true.
  • Discomfort in unlearning: The process of letting go of previously accepted knowledge or beliefs to gain new insights can be daunting. Unlearning requires both humility and courage.

Emotional challenges – “My feeling tells me to stop”

  • Fear of the unknown: It can be intimidating to venture beyond the familiar terrain of conventional thinking into the vastness of undiscovered possibilities. The uncertainty that comes with innovative thinking can trigger fears and doubts.
  • Resistance to change: On both a personal and societal level, there is a certain inertia that resists change. First Principles Thinking is inherently disruptive, and this can lead to emotional resistance or even setbacks.

Overcoming the Challenges

As I mentioned earlier it is a though thing to constantly question yourself and think about “maybe my brain is fooling me, can I trust myself?”. This is the art of First Principles Thinking, to be ready to challenge every assumption, to accept that you are wrong in 99% of the cases and to be willing to go further and do more. So there is not much more than practicing you can do in order to become better at this kind of thinking. Additionally it might help if you:

  1. Practice Continuous Learning: Fostering a growth mindset and valuing continuous learning can make the journey smoother. By viewing challenges as opportunities for growth, the process becomes less intimidating.
  2. Seeking Diverse Perspectives: Inviting diverse viewpoints can offer fresh perspectives, helping to challenge and refine one’s own biases and assumptions. So be “Neuro-Diverse” or just ask your friends, your parents or even people who are so far away from the topic that you need to first explain them the basics.
  3. Practicing Self-awareness: Regular introspection can be invaluable. Recognizing one’s own biases and actively working to counteract them is key to genuine First Principles Thinking and this should be praciced on a daily basis and in every way. Train your brain to like such kind of “assumption detection” because our world is full of assumptions which everyone just takes for granted.


Among the multitude of problem-solving and decision-making tools, First Principles Thinking stands out even though it is “obviously simple.” It can be an incredibly effective method for driving innovation and bringing clarity to the decision-making process. Due to the nature of the method, it does come with some (cognitive) challenges and is not always the most comfortable approach for everyone involved. But that is precisely why it has such great potential for change when applied consistently and in the right way.

It is important to understand that such a method needs to be learned and practiced, and that it also requires a lot of effort (especially in the early stages). Just as one would not use a hammer for every task, First Principles Thinking is most effective when applied carefully and in contexts where it can develop its depth and clarity or where completely new solutions are absolutely necessary.

Personally, I can only recommend that any company or organization apply First Principles Thinking to strategically important issues or when innovation is needed. With this method, anyone can lead through complexity and uncertainty and perhaps find the breakthrough solutions they’ve always wanted. But be aware of the innovator’s dilemma, because you may have to sacrifice (part of) your existing business when you think of something completely new.

Start practicing First Principles Thinking today and ask yourself if I have told you enough about this topic 😉

Benjamin Talin, a serial entrepreneur since the age of 13, is the founder and CEO of MoreThanDigital, a global initiative providing access to topics of the future. As an influential keynote speaker, he shares insights on innovation, leadership, and entrepreneurship, and has advised governments, EU commissions, and ministries on education, innovation, economic development, and digitalization. With over 400 publications, 200 international keynotes, and numerous awards, Benjamin is dedicated to changing the status quo through technology and innovation. #bethechange Stay tuned for MoreThanDigital Insights - Coming soon!

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More