Core Concept Behind Billion-dollar Businesses
The First Principles framework must be the hottest system thinking tool nowadays.
It was first proposed by Aristotle, but it gained widespread attention thanks to Elon Musk.
It is often referred to as the “ultimate secret” behind Musk’s disruptive innovations, some say it’s the key to billion-dollar businesses.
Musk once explained his thought process like this:
I often think about problems from their essence, rather than comparing with others. If you’re always comparing with others, you can only achieve small iterative improvements. But if you peel back the layers and look at the core, then build up from there, you may create something truly disruptive.
Aristotle described the First Principle as: “A most fundamental proposition or assumption in every system, which cannot be omitted, deleted, or violated.”
About the Principle
While it may sound theoretical, the principle is actually straightforward:
Breaking down complex problems into their most basic, foundational elements, and then building up solutions from there.
What makes Musk’s innovations so groundbreaking is his ability to question long-accepted patterns and paths.
He identifies cognitive structures or technological dependencies that may make sense to others but don’t seem optimal to him.
For example, in reducing the cost of rockets and satellites, Musk continuously asks why certain components or functions are necessary. If they aren’t essential for launching a rocket and placing it in orbit, can they be removed?
He even questioned whether satellites must be launched using rockets at all—an idea that may sound radical but challenges traditional methods.
Asking “why” repeatedly may seem naive at times, but this method of thinking is what drives his revolutionary ideas.
The disruptive approach rooted in the First Principle uses critical thinking to break down irrational assumptions and reveal new, more rational pathways.
Difference From 5 Whys?
First Principles focus on breaking down complex problems into their most fundamental elements.
5 Whys is a root cause analysis method used to identify the core reason behind a problem, by asking “why” five times until the true issue is revealed.
Also, these 2 have some commons:
Both frameworks aim to uncover deeper insights and challenge surface-level assumptions.
Both encourage questioning existing methods or explanations to find more effective solutions.
However, First Principles is broader and more foundational, while 5 Whys is more focused on problem diagnosis.
How Can We Apply the First Principle?
Ordinary people can harness the First Principle by starting with these three fundamental questions:
- Why is it like this?
- Does it have to be this way?
- Can it be done differently?
Put them into your everyday life and work, and you will be opening the door to innovation in your own domain.
