First principles thinking

First principles thinking- Mental Model Series -3

" Deconstruct then reconstruct." - James Clear 

Photo by Steve Johnson from Pexels

We have a complex problem and we have put on our thinking hat and set out on a mission. we always look for an easy solution  first. We look for an already known example which is close enough of the problem on hand and use an analogy.Sometimes work but many times won't. But there is a better way - "First principle thinking".  It is based on the approach to break down a complex problem into basic elements and reassemble them from the ground up. Let us dig deep further.

What is first principle?
A first principle is a basic foundational assumption that cannot be deduced further and that forms the basis of the thinking in its own particular field. All the other works in that field are based on this basic assumption being true and built up from there. 
Each field usually has some assumptions that form the basic building blocks of the knowledge .These assumptions  are considered very rigid in physical sciences and good approximations in social sciences.

In physics, They are called laws. These are for example the laws of thermodynamics, or Newton’s laws of motion. 

In biology, It is evolution. This is the first principle which shapes how all living things live and behave and why they are the way they are.

In economics, for a long time, the basis of all theory and calculations in the field was the assumptions of the rational actor. All the different economic models built on top of this assumption.

With physical sciences, the first principles are what we assume to be true and are usually pretty solid. On the other hand, in social sciences, the first principles are usually just approximations of the world and so not as solid as the first principles of physical science

For our easy understanding,  Some of the examples of first principle are ,2+ 2 = 4, Male has  two  chromosomes(XY), or definitions like " widow is a women whose husband died", The laws of thermodynamics in physics. 

Application of First principles thinking -

Elon Musk of Tesla used this first principle thinking to solve some of his  very complex problems. He said he borrowed this technique from Physics. In physics , typically you start with a set of basic assumptions  that you hold to be true and  cannot be broken down further and reason up from there . He uses this approach to deduce his problems.

 To understand better , let us take his battery example which goes like this,

"And for batteries, they would say, oh, it’s going to cost – you know, historically it’s cost $600 per kWh and so, it’s not going to be much better than that in the future, and you say no, what are the batteries made of? So first principles mean you say okay, what are the material constituents of the batteries? What is the spot market value of the material constituents? So you can say, it’s got: cobalt, nickel, aluminum, carbon and some polymers for separation and a steel can. So break that down on a materials basis and say okay, if we bought that on the London metal exchange, what would each of those things cost? Like, oh, jeez, it’s like $80 per kWh. So clearly, you just have to think of clever ways to take those materials and combine them into the shape of a battery cell. And you can have batteries that are much cheaper than anyone realizes.”

So Musk challenges the popular assumption that  batteries are expensive and not much can be done about it.  He went down to the basic constituents of battery and the raw materials that made them up to turn that impression upside down.

As we can see, First principles thinking is one of the best way to reverse-engineer complicated problems . Why this is one of the best ways?  our survival instincts favor speed and efficiency over novelty and innovation .Naturally we prefer to take the beaten track and iterate what was already done to gain speed. But no original solutions will emerge from this kind of thinking. So first principle thinking helps to throw away the ideas we inherit ,look at the components and then substituting a more effective solution for one of the key component.

However easy this seems to appear , practicing first order thinking is hard but not impossible . Our tendency to imitate will always stand in the way.We need to consciously overcome this barrier and also some of our cognitive biases. 

Please read the following articles to learn more -

https://gainweightjournal.com/a-short-lesson-on-first-principles-thinking/
https://jamesclear.com/first-principles

Footnote -
What are Mental Models ?
“It’s your mind’s toolbox for making decisions. The more tools you have, the more equipped you are to make good decisions. “
A mental model is an explanation of how something works. It is a concept, framework, or worldview that you carry around in your mind to help you interpret the world and understand the relationship between things. Mental models are deeply held beliefs about how the world works. 


For More , read https://jamesclear.com/feynman-mental-models