First Principles Thinking
Here is the companion cheat sheet to the video.
Ignore the "web of noise”. That is people, social media, your mom or anyone not familiar with your business telling you what to do.
Avoid Reasoning from Analogy. Have you ever met someone that reminded you of a person you’re close to? Did you treat them differently because of this? Chances are good that you did, its actually human nature but it’s wrong. Similar appearances don’t make for the same person. Don’t compare your business to another and think the same principles apply.
Here are some examples of the pitfalls in comparative thinking:
Superficial Similarities: If the analogy is based on surface-level similarities rather than deep structural similarities, the reasoning can be flawed. For example, comparing the management of a company to running a household might miss critical differences in scale, complexity, and stakeholder interests.Overlooking Differences: Failing to consider significant differences between the two situations can lead to incorrect conclusions. For instance, using an analogy between biological evolution and technological innovation might ignore the fact that evolution has no foresight or intentional design, unlike human-driven technological progress.
Contextual Variations: The context in which each situation occurs might be vastly different, affecting the applicability of the analogy. For example, using a successful marketing strategy from one industry as an analogy for another might fail due to different customer behaviors and market conditions.
Assuming Identical Outcomes: Analogies might lead to the mistaken belief that similar processes will produce identical outcomes, disregarding unique variables or factors that might influence results differently.
Misleading Simplicity: Analogies can oversimplify complex issues, leading to a lack of consideration for nuanced factors. For example, comparing the brain to a computer might overlook the complex biological processes that cannot be fully represented by digital systems.
Bias and Preconceptions: Analogies can reinforce biases if they are chosen to fit preconceived notions rather than objective analysis. This can lead to reinforcing stereotypes or perpetuating misconceptions.
Failure to Recognize Limits: Reasoning by analogy can lead to overconfidence in predictions and solutions if the limitations of the analogy are not acknowledged. An analogy can provide insights, but it should not be the sole basis for decision-making without considering other evidence and analysis.
Questions to kickstart your problem solving.
How is my business different from others in my industry or field?
Am I comparing myself to another business and thinking all the same factors apply?
Where else might my customers be solving their problems or getting their needs fulfilled.
Why wouldn’t I want to shop/buy/eat/use my service?
How do I know I have a problem?
How can I be sure the problem is what it seems to be?
How many customers have you spoken to about their unmet needs?
