Sunday, 4 January 2026

First Principles Thinking (Aristotle - Elon Musk)

First trip for year 2026 at Dumai International Ferry Terminal, Dumai, Indonesia

First Principles Thinking (Aristotle → Elon Musk)

First Principles Thinking is a way of solving problems by breaking them down to their most fundamental truths, rather than relying on assumptions, traditions, or “the way things have always been done.”

Instead of reasoning by analogy (“this is how others do it”), you reason from the ground up.


What it really means

Most organizations operate on assumptions layered on top of assumptions:

  • Old SOPs

  • Legacy processes

  • “Best practices” copied from others

First Principles Thinking forces you to pause and ask:

What is absolutely true here, and what is just habit or convenience?


How to apply it in practice

1️⃣ Ask “Why is this done this way?”

Go beyond surface answers.
Ask “why?” repeatedly until you reach a fundamental reason.

Example:

  • Why do we need this approval step?

  • Why must this take 5 days?

  • Why is this role separated from that role?

Very often, the answer is:

“Because that’s how we’ve always done it.”

That’s your signal to rethink.


2️⃣ Challenge old SOPs and assumptions

SOPs are not laws of physics.
They were created:

  • For a different time

  • Different technology

  • Different scale

  • Different people

With First Principles Thinking, you ask:

  • If we were starting from zero today, would we design it this way?

  • Which steps actually add value?

  • Which steps exist only to manage fear, not risk?


3️⃣ Redesign the process from the ground up

After identifying what is truly necessary, rebuild:

  • Remove unnecessary steps

  • Combine roles where possible

  • Automate what doesn’t require human judgment

  • Shorten feedback loops

The goal is simplicity with effectiveness, not complexity with control.


Why great leaders use this approach

  • Aristotle used it to understand truth and logic.

  • Elon Musk used it to:

    • Reduce rocket costs

    • Rethink manufacturing

    • Build systems others thought were impossible

The biggest breakthroughs don’t come from improving existing systems by 10%.
They come from rebuilding the system entirely based on fundamentals.


Key takeaway

Progress happens when we stop asking
“How can we do this better?”
and start asking
“Why are we doing this at all?”

#FirstPrinciplesThinking #CriticalThinking #LeadershipMindset #CorporateStrategy #BusinessInnovation #ProcessImprovement #OperationalExcellence #ThinkDifferent #StrategicThinking

Above from Chatgpt and below Gemini 3

First Principles Thinking is a mental model that involves breaking down complex problems into their most basic, fundamental truths—the "building blocks"—and then reassembling them from the ground up.

As popularized by Aristotle and utilized extensively by Elon Musk, it is the practice of questioning every assumption you think you know about a given problem.


1. The Core Philosophy: Aristotle → Elon Musk

  • Aristotle’s Definition: He defined a first principle as "the first basis from which a thing is known." He believed that in any systematic inquiry, you must start with the primary causes or "first seeds" of knowledge.

  • Elon Musk’s Application: Musk uses this to challenge the "it’s always been done this way" mentality (Reasoning by Analogy). Instead of looking at what others are doing, he looks at the physics and the raw costs.

    • Example: Instead of buying a $65 million rocket, he looked at the raw material costs (aluminum, titanium, copper, etc.). He realized the materials only cost 2% of the rocket's price. He decided to buy the materials and build the rocket himself (SpaceX).


2. The Step-by-Step Process

Step A: Identify and Define Current Assumptions

Write down everything you "know" or "assume" about a process.

  • Traditional Thinking: "Buying a new car is expensive because dealerships take a huge cut."

  • The Assumption: You must go through a dealership to buy a car.

Step B: Break Down the Problem into Fundamental Truths

Strip away the layers until you reach the "physics" or the undeniable facts of the situation.

  • Question: What is actually required to get a car to a customer?

  • Fundamental Truth: A car needs to be manufactured, and a customer needs a way to pay for it and receive it.

Step C: Create a New Solution from Scratch

Once you have the raw facts, build a new path that doesn't rely on old SOPs (Standard Operating Procedures).

  • The Musk Solution (Tesla): Bypass dealerships entirely. Sell directly to consumers online.


3. Application in Modern Work (Challenging the SOP)

When you apply First Principles to a business or workflow, you are essentially a "Corporate Architect" rather than a "Decorator."

ActionTraditional Reasoning (Analogy)First Principles Thinking
Questioning SOPs"We follow this process because it's the industry standard.""What is the specific goal of this process, and is there a faster way to reach it using current tech?"
Cost Management"We need a bigger budget because our competitors spend more.""What are the atomic units of this project? How can we achieve the result using only those units?"
Innovation"Let's make a better version of the existing product.""Forget the existing product. What is the human need we are trying to solve?"

4. Why It Works: "Redesigning the Process"

Most people struggle to innovate because they are "Reasoning by Analogy." They do things because they saw someone else do it, or because it worked in the past.

First Principles Thinking allows you to:

  1. Eliminate Waste: You realize half of your SOPs are just "safety nets" for problems that no longer exist.

  2. Optimize Speed: By removing unnecessary intermediaries (the "middlemen" in a process), you move faster.

  3. True Innovation: You create things that look nothing like what currently exists because you aren't trying to "copy-paste" the past.


Summary Checklist for You:

  • Ask: "Is this a law of physics or just a tradition?"

  • Ask: "If I started this company today with a $0 budget and 2026 technology, how would I do it?"

  • Action: Strip the problem to its bones. Build it back better.

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