First Principles ‒ Why It’s Critical To Use This Approach In A Coaching Environment
- Brainz Magazine
- Feb 8, 2022
- 8 min read
Updated: Feb 17, 2024
Written by: Connor Dales, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
It seems reasonable to apply what we learn through this method right? If only that’s how human beings were truly wired to work out solving problems and providing better more quantifiable results to your clients.
However, our cognitive reasoning goes in another direction, one in which we tend to reason by analogy instead (examples based on previous experience and data proven out overtime).
So, what are first principles anyway? First principles or first principle thinking (as it’s more commonly known as) is to think about a proposition that cannot be deduced from other propositions and assumptions.
It is looking at a proposition (or problem) and looking at it from the most basic premises to get down to the fundamental truths. Once “truths” are apparent, you can reason-up and figure out the validity of a proposition or assumption.
Here’s an example of this, imagine a house that is built with bricks. Bricks are made of sand and alumina. Sand is made of quartz and mica. Quartz is made of silicon and oxygen atoms. Without getting further into chemistry, one can deduct that, arguably, the most fundamental (and attainable) material of a house is sand. A single grain of sand is the most attainable and base resource that make up a house!
First principle thinking is more known to be applied in other fields than business. This type of thinking can be traced back to ancient Greek philosophers (Aristotle, Plato, etc.) and is nowadays used in different scientific disciplines to get to the “true” or “core” matter of things.
There are other models that use a similar thinking pattern that known to be more widely used in a business environment. For example, disruptive innovation or lean thinking are alternative methods of learning that can also be applied to the current existing situation is your client is struggling with in regard to their business.
Disruptive innovation’s focal point is innovating something to the point that it makes alternatives nearly obsolete. For example, what electric coffee machines did to percolators.
Lean thinking focuses on increasing output and eliminating waste to make an organization more efficient. So that an organization can be more efficient, processes and knowledge need to be questioned and inefficient routines eliminated.
Whereas disruptive innovation uses the first principle thinking to come-up with breakthrough products and services, lean thinking uses the first principle thinking to make an organization more efficient.
The difference between the two is important for business development. One focuses on the end-product, what customers want (buy). The other focuses on organization efficiency, making a company more malleable and, by extension, serving stakeholders better.
Both are important for business development but separately yields a very different outcome.
In business, reasoning from the first principle is probably best known through Elon Musk, founder of Tesla and SpaceX. Elon Musk has a physics background and has gone on record to explain how approaching problems from a first principle mindset, has helped him in coming up with solutions that would otherwise “not be possible”.
One example is that Elon Musk tried to buy rockets so he could launch them into orbit for SpaceX. However, the costs of buying a rocket outright (including old rockets from Russia) were too high to make SpaceX a successful company. Confronted with that problem, Musk approached it from the first principle thinking. He boiled a rocket down to its most fundamental components and materials. He realized that the prices for materials to build a rocket where much lower than buying a rocket outright. In other words, building a rocket-ship would make more sense for the business model he was creating.
Even though Elon Musk is probably the person most associated with first principle thinking and business, there are other great business leaders who have approached problems from a similar perspective, like Henry Ford, Charlie Munger, Steve Jobs and many more.
As business leaders and entrepreneurs, we are often faced with unlimited possibilities and opportunities to innovate and iterate on the way we run our businesses, how create, produce, and distribute our products and services, and how we interact with our customers and clients.
As exciting as that may sound on the surface, pursuing every new idea and trying the latest new strategy or tactic is rarely cost-effective. This method when applied consistently can be used in a coaching environment to effectively break down your clients’ biggest problems down to its most granular essence, making their obstacles less intimidating by taking apart seemingly complex problems into digestible bite-sized chunks.
As you fragment these pieces breaking them down to their raw constituents, you can use the information already available to you, think outside the box, and find the fastest way to a solution.
First Principles helps you reverse engineer a problem by breaking it down and reassembling its pieces from the ground up. Using this method, you see your issues from a different perspective, unlock your creativity, and create solutions you would not have devised otherwise.
THE 3-STEP PROCESS TO APPLYING THE FIRST PRINCIPLES Approach When Coaching
While at first glance First Principles Thinking sounds complicated, it really isn't. All you need is a problem worth solving and this 3-step process to break it down. For the best results, make sure to have your clients tackle one problem at a time.
STEP 1: HAVE YOUR CLIENT IDENTIFY THE CURRENT PROBLEM AND THEIR BELIEFS AROUND IT
Running a business implies managing tons of problems that come your way and finding viable solutions to them. To develop a new and improved solution for each one, start by identifying the issue at hand.
A common problem for entrepreneurs is I do not know how to grow my business.
Once you identify the problem, determine any preconceived beliefs that are stopping your clients from finding other answers. Often, these assumptions limit our potential to see beyond the solutions others have already tried.
Examples of limiting beliefs we have about growing our business include:
Growing my business will cost a lot of money.
I will struggle and sacrifice a lot to get there.
I do not have the resources to make it happen.
There is a lot of competition out there.
If I fail, I could face bankruptcy.
Make sure you have them write down all the limiting beliefs that could be blocking them from solving their problem.
STEP 2: HAVE THEM LIST THE REASONS WHY THEY ARE NOT ABLE TO SOLVE THE PROBLEM
In other words, breakdown their problem into its most basic units.
Elon Musk explains the premise behind this step: “It is important to view knowledge as a semantic tree. Make sure you understand the fundamental principles (the trunk and big branches) before you get to the leaves (the details).”
Using the hypothetical example from Step 1, you could say the following are (legitimate) reasons for why you cannot currently solve your issue.
I do not have enough time to work on my new business venture because I have other work and personal commitments.
Growing my business will cost a lot of money.
There is so much competition out there.
Growing my business requires more resources than I currently have.
Once you identify and list the principal reasons for why their problem is difficult to resolve, you can reflect on insightful solutions to it.
STEP 3: CREATE NEW SOLUTIONS
Once you have helped your clients identify their problem, the limiting beliefs they have about it, and the legitimate reasons for why they are having an issue, it is time to start creating new possible solutions.
Let us look at some of the assumptions most entrepreneurs have about growing their business and how we can put a First Principles Thinking twist on them.
LIMITING BELIEF No.1 GROWING MY BUSINESS WILL COST A LOT OF MONEY.
What do you need to grow a business that is profitable and can scale over time? You need to sell products or services to more customers who have a specific need.
Coaching Using First Principles:
Attracting new customers, retaining your existing clientele, and selling to them costs money. If you currently do not have the financial resources to make this happen, you will likely need funding from an external source.
Who has access to more funding and is it a viable option for you? This could mean acquiring a business partner, obtaining investments, or a business loan is in the cards.
LIMITING BELIEF No.2 THERE IS A LOT OF COMPETITION OUT THERE.
In today’s online marketplace, there is a business for just about everything. As an entrepreneur, it is your job to create and sustain a business model that allows you to serve the best product(s) or service(s) you can offer within your field of choice.
Coaching Using First Principles:
Start with their strengths and core competencies – what are they uniquely great at? What skills do they have? Nowadays, most skills can be turned into a profitable business model. The key is to offer the best service amongst your competitors.
When you stick to your strengths but test out different variations and strategies, you can hone-in on what works well with your customer base and can make the most profit.
Have your clients identify and lean into was exactly their zone of genius is.
LIMITING BELIEF No.3 IF I FAIL, I COULD FACE BANKRUPTCY.
Whether you are an entrepreneur just starting your business or a seasoned professional who has been running an organization for some time, bankruptcy is always a possibility.
The economy could take a massive hit, your industry could lose market value, or a new competitor could steal your existing customers. If you are serious about your business, it is a risk you must be willing to take.
Coaching Using First Principles:
How can you ensure you protect your finances against external factors as much as possible? While you cannot control what the national economy or where your industry’s market value stands, you can control how you stack up against other competitors.
This means setting a clear plan of action. Based on a comprehensive business plan, what rules, regulations, and tax laws do you have to abide by? If you want to take out a business loan, how much can you pay now? Never overestimate your financial capacity.
Another factor that influences a business’s success is customer satisfaction. Think, how can you give your existing and future customers excellent service and still make a sustainable profit? What is the added value you currently provide to clients?
FIRST PRINCIPLES CAN IMPROVE YOUR LIFE
The First Principles Thinkinag can help you overcome the roadblocks to your innovation and allow your creative ideas to flow. It can be used to solve problems related to your finances, health, and personal life by inspiring you to think beyond the information often considered to be an absolute truth.
Do not be afraid to challenge your assumptions – seek evidence and examples of others who have previously overcome their limitations to start analyzing your current problem areas in a different light.
Connor Dales, Executive Contributor Brainz Magazine
Connor Dales, is a serial entrepreneur, business coach-consultant and a leader in leveraging systems for small, medium, and large sized businesses in addition to serving its owners by facilitating and cultivating strong leadership growth. He's an accredited ICF Certified Coach and has a wealth of knowledge and experience in business and personal/professional development. Connor is passionately committed to ensuring business owners and their teams breakthrough their bottlenecks and challenges to maximize their profitability and elevate their levels of impact! He is the founder of Meta View Coaching Solutions, a coaching-consulting company and online education business on a mission to transform companies from ordinary to extraordinary.
