Solving "Wicked" Problems using the "First Principle"

¹In my last episode, I explored the concept of Wicked Problems, Simple Solutions. When faced with tough challenges in product development, it’s easy to fall back on frameworks, trends, or surface-level fixes. Yet, the most lasting and impactful solutions often arise from a deeper, more rigorous approach: first-principles thinking. Far from being just a buzzword, this method involves breaking problems down to their core truths and reconstructing solutions from the ground up.

Welcome to Episode 15 of Product with JnrJose

What Does First Principles Thinking Mean?

At its core, first principles thinking is about stripping away assumptions and getting down to the basics. Instead of accepting the "how it’s always been done" mindset, this approach encourages asking, “What is fundamentally true about this problem?” and building upward from there.

Photo by The 77 Human Needs System on Unsplash

Let’s take a cue from an everyday context—preparing jollof rice, a beloved dish across West Africa. The traditional approach might focus on improving your cooking tools, such as using a better pot or stove. First principles thinking, however, digs deeper and asks:

• Why does jollof rice preparation take so long? (It requires precise layering of ingredients, monitoring heat levels, and adequate stirring.)

• Can we optimize the preparation process or simplify ingredient integration without compromising taste?

Instead of just upgrading cookware, this thinking might lead to innovative pre-packaged spice blends tailored for Jollof or multi-compartment rice cookers that automate cooking stages. By focusing on the core process rather than the tools, you open the door to breakthroughs that redefine how the dish is made, saving time while preserving its authentic flavor.

Applying First Principles to Product Development

Now, let’s drive this concept home. How can first-principle thinking help us solve hard problems and design great products?

1. Define the Problem Clearly
   First principles of thinking start with a deep understanding of the problem. Ask:

   • What is the exact issue we’re trying to solve?

   • Who experiences this problem, and in what context?

   • Why does this problem exist?

   For example, a ride-hailing platform struggling with driver retention might not have its problem solved when you jump to offering bonuses (in fact, I am of the school of thought that throwing bonuses and freebies at customers is a pathetic way to learn about VALUE RISK in product). Instead, dig deeper: Are drivers frustrated with waiting times? Is the pay structure too complicated?

   Precise problem definition is the foundation for meaningful solutions.

2. Break the Problem Into Basics
   Once you’ve defined the problem, strip it down to its core truths. Ignore existing solutions and focus on fundamental components.
   Example:

   • Problem: Users abandon an app/platform during onboarding.

   • Assumptions: Onboarding needs multiple steps to explain features.

   • First Principles: Users need to understand the product's value immediately and feel compelled to continue.

   By discarding the assumption of lengthy onboarding, you might rethink the process entirely—delivering value upfront without overwhelming users.

3. Rebuild the Solution
   After breaking the problem into its fundamental parts, construct a solution that directly addresses those basics. Focus on:

   • Simplicity: Can this be done with fewer steps or less effort for the user?

   • Effectiveness: Does this solution solve the problem completely?

   • Alignment: Does this solution fit the user's context and your business goals?

   For Example: Uber didn’t just replicate taxi systems—they rebuilt ride-hailing by asking fundamental questions about location tracking, pricing transparency, and ride requests.

4. Validate Through Iteration
   First principles solutions aren’t guaranteed to be perfect on the first try. Test your solution in the real world, gather user feedback, and refine it. The iterative process ensures the solution works in theory and delivers value in practice.

Why Use First Principles for Wicked Problems?

Wicked problems are deeply complex challenges characterized by their interwoven layers, unclear solutions, and often contradictory requirements. Tackling such problems requires more than surface-level fixes or incremental changes—it demands a methodical and foundational approach. This is where first principles thinking excels, as it moves beyond assumptions and directly addresses the root causes.

Take financial inclusion in Africa, a classic wicked problem, as an example. While many solutions focus on providing loans or opening bank accounts, first principles thinking digs much deeper, stripping the issue down to its most fundamental truths. It asks:

Why Are People Excluded from Financial Systems?

Are systemic issues such as poor infrastructure or bureaucratic inefficiencies at play? Are there cultural norms or perceptions about formal financial institutions that alienate large portions of the population? By questioning the "why," we uncover systemic roadblocks that simple account-opening drives won’t resolve.

What Barriers Prevent Access?

• Financial Literacy: Is a lack of understanding about financial systems hindering adoption? Are users familiar with terms like interest rates or savings plans, or do they find these intimidating?

• Trust Issues: Do people distrust financial institutions due to past failures or fraud?

• Affordability and Accessibility: Are fees, minimum balances, or rigid requirements keeping low-income individuals out of the system? Is access to physical banking infrastructure a challenge in rural areas?

How Can These Barriers Be Removed in Scalable Ways?

First principles thinking moves from asking questions to exploring scalable and transformative solutions. Instead of expanding traditional banking infrastructure, it challenges the necessity of those structures entirely. For instance:

• Agency Banking Platforms: Moniepoint in Nigeria addressed financial inclusion by transforming local businesses into agents, offering banking services like deposits and bill payments. This decentralized model bypassed costly bank branches, making financial services accessible and affordable for underserved communities, especially in rural areas, while creating new income streams for agents.

• Community-Based Financial Solutions: Microfinance institutions that build trust through local partnerships and education programs.

• Innovative Payment Models: Pay-as-you-go solar systems, like those introduced by companies such as M-KOPA, doubled as financial inclusion tools by enabling users to build credit history through non-traditional means.

First Principles Enable Breakthrough Solutions

When applied to wicked problems, first principles thinking does more than find answers—it uncovers the questions that matter. Instead of merely tweaking existing systems, it redefines how we approach these challenges, creating solutions that are not just functional but transformative.

This approach isn’t just limited to financial inclusion. It can be applied to problems like healthcare accessibility, education reform, and even government policy change. By focusing on root causes, first principles thinking not only addresses immediate needs but also lays the groundwork for sustainable and scalable impact. In the case of financial inclusion, the result has been a paradigm shift—from building more banks to leveraging technology to meet people where they are.

The Takeaway: First Principles Lead to Breakthroughs

First principles thinking isn’t just a strategy—it’s a powerful tool. Whether you’re developing innovative products, addressing societal challenges, or even teaching complex concepts, breaking problems down to their fundamental truths enables you to craft solutions that are both impactful and straightforward.

Great products don’t just solve hard problems; they make those solutions feel effortless. By applying first principles, you can navigate complexity, deliver simplicity, and create solutions that truly matter.

1. the voiceover is generated using NotebookLM