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Strategy Skills > Structuring the Thinking

First principles thinking

Although strategy needs to be developed with a pragmatic and realistic understanding of delivery constraints and real world complexity, it is important that strategic thinking is not constrained or limited by existing legacy norms and assumptions.

What Is It?

Going back to first principles is simply a way of thinking that challenges implicit assumptions and current approaches, and uses an objective assessment of available evidence and knowledge to come to fresh logical conclusions.

Why Is It Useful?

Situations often arise where the current state of affairs would never have been explicitly designed or intentionally constructed. Rapidly changing environments or a history of uncoordinated incremental interventions can result in unintended consequences and behaviours driven by distorted incentives.

In the same way, the rationale for a policy programme or intervention can become lost or muddied over time. It is possible for policies to acquire legitimacy simply by virtue of being in place for long periods, with the original underlying assumptions becoming so taken for granted that they become received wisdom. Standard behaviours and ways of working are then in danger of continuing unchanged despite these assumptions having long lost their validity.

By going back to first principles it is possible to take stock of a policy - how it fits with and drives towards strategic outcomes, and whether it is still an effective means of addressing the underlying problem. First principles thinking encourages an explicit recognition of the drivers, incentives and rationales driving behaviours and interactions in a system and ultimately challenges resource allocation decisions.

The Necessary Conditions

Obtaining a mandate for the kind of fundamental re-evaluation encouraged by first principles thinking is one of the biggest challenges in strategy development. Those working within clearly defined strategy projects commissioned by high-level sponsors such as ministers may be given such a remit, but those developing new strategies within their policy areas too often come up against fixed boundaries.

Going back to first principles can mean re-opening issues that have lain dormant for years, and allows no room for sacred cows or 'undiscussables'. For strategy work to be truly effective, the importance of gaining the commitment of stakeholders to a fundamental re-think can not be understated.

It is also important to nurture a conducive culture and working style - one in which norms can be challenged and creative ideas are encouraged. 'Greenhousing', or protecting creative ideas that are generated in brainstorms, is an important way of encouraging innovative and fresh approaches to an issue rather than immediately finding faults or flaws in an idea.

Stepping outside of the current situation, and identifying and setting aside current assumptions requires space and time to think. This is naturally easier in the context of clearly defined strategy projects than in business-as-usual situations. However, it is equally important in both situations if strategy is to be not only developed effectively but also fine-tuned to remain effective in response to a changing environment.

Physically leaving the location embodying the current situation through an away day can be a more than symbolic way of creating space to think. It can help to provide some useful distance from both the environment in which prevailing assumptions are taken for granted, and also from the more practical pressures of day to day issues.

Keeping A First Principles Perspective

Whether developing a new strategy, or managing the ongoing implementation of a policy, it is valuable to develop and retain an objective first principles perspective. Regularly asking the question 'why?' can be a powerful way of uncovering the motivating forces shaping the behaviour of different players in a system, and checking that the underlying rationale, incentives and structures are still appropriate and valid.

Designing a System From First Principles

Given the space to rethink an approach to a policy issue, first principles thinking encourages an explicit approach to identifying and understanding the drivers and incentives that are together expected to determine behaviours and hence outcomes of a system. Techniques such as Systems Thinking and Theories of Change (described in further detail in The Magenta Book on Policy Hub) use similar logic and again stress the importance of understanding the causal sequence through which an intervention is anticipated to have its effect.

A first principles approach also encourages the generation of 'ideal' solutions. Temporarily putting aside issues of feasibility and acceptability allows the ideally suitable solution to be designed. This ideal world solution can be used to challenge resources allocation decisions and explore the political appetite for radical change.

Strengths

• Helps to challenge implicit assumptions.
• Uncovers perverse incentives, undesired behaviours and unintended consequences.
• Encourages a fresh approach to issues, and helps to develop creative and innovative solutions.

Weaknesses

• Challenging the status quo can be uncomfortable, especially for those with vested interests.

It can be very hard to challenge fixed boundaries that are not initially open to debate and to obtain the necessary mandate and commitment for a fundamentally re-think.

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