First Principles Thinking
Example: Leaders question old budgeting or approval processes (“why do we do this?”) to create simpler, value focused methods.
Other Examples:
- Instead of assuming current project prioritization methods are optimal, first principles thinking asks: What fundamental value are we aiming to deliver to customers, and how can we design our portfolio to maximize that value with minimal waste?
- Rather than accepting existing budgeting cycles, a first principles approach challenges: Why do we allocate funds annually, and would continuous or dynamic funding better support rapid adaptation and innovation?
A long time ago, Lego went down in popularity. Back then, Lego sold just bricks. What brought them back to popularity was “Lego Kits”… wherein kids can follow illustrated step-by-step instructions to build what was shown on the Lego carton box that they bought. The kids followed the instructions. They “copied” the steps. essentially.
This is a reflection of us… we sometimes copy what we thought of as “Best Practice”… and we miss the opportunity to innovate.
First Principles Thinking is: “Break down that ‘Lego Kit’ that was built… and from those Lego pieces — and perhaps borrow other pieces from somewhere else — create an entirely new “work of art” … without copying. Be creative and innovative!”
First Principles Thinking is not “Copying” existing stuff. It is questioning existing stuff and coming up with a better one.
Elon Musk used First Principles Thinking with his Electric Car (Tesla) and his reusable space rockets (SpaceX).
LPM is on Amazon