Break deadlocks by returning to first principles

Hard - Requires significant effort Recommended

In the high-pressure realm of energy trading, one firm confronted a crisis: two trading desks vied for the same liquidity stream. Each desk argued intense logic, data models, and profit projections. Week after week, the debate stalled execution and lost revenue. The head trader finally called a reset, convening both teams and starting with the firm’s first principles: uncompromising risk limits, customer trust as the highest asset, and transparency in all deals.

Studies in decision science highlight that insisting on principles reduces groupthink and eliminates unproductive politicking. Once the desks agreed these truths, they mapped each proposal to the top principle—customer trust. Option B, less profitable in the short term but more transparent, clearly won. The head trader then issued a swift ruling, ending the stalemate.

Borrowing from Olympian coaching methods, he blended this with private lines of inquiry, ensuring dissenters felt heard before the final call. As a result, execution resumed within hours, and profits rebounded by 12 percent the next quarter. More importantly, the firm cultivated a habit: whenever friction flared, they’d chant “risk limits first” and “customers second,” immediately resetting the debate to shared, immovable truths.

This approach—returning to first principles—traces back to Aristotle and was rediscovered in modern strategy by physicist-turned-entrepreneur Elon Musk. By cutting through emotional attachments and power plays, teams unlock clearer, faster, and more aligned decisions.

Picture your next hurdle. Before diving into pros and cons, stand up and declare your group’s top guiding truths: mission, values, or customer priorities. Ask each person which principle matters most for today’s dilemma. Then frame the conflict through that lens, and make the call referencing that principle. This practice will turn your next gridlock into a swift agreement. Try it tomorrow.

What You'll Achieve

Internally, you’ll replace prolonged debates with clarity and collective alignment. Externally, teams will deliver decisions faster and with fewer revisions, boosting execution speed by measurable margins.

Define your immovable truths

1

List your guiding principles

Spend ten minutes writing down your project’s nonnegotiable truths—customer needs, core mission, budget floors, brand values.

2

Read out loud

At the next decision meeting, start by reciting those first principles. Invite everyone to confirm or clarify them.

3

Frame the dilemma

State the conflict (“We can’t choose between Option A and B”) in terms of which principle each side is serving or bending.

4

Anchor the decision

Guide the team back to the principle that ranks highest and show how one option aligns more closely. Make the call decisively.

Reflection Questions

  • What are your team’s top three principles, and are they still accurate?
  • How might re-anchoring to principle solve your current biggest impasse?
  • What emotional biases do you need to set aside to follow these principles?

Personalization Tips

  • Planning a family vacation—remind everyone that connection time is the priority, then choose locations that best deliver that.
  • Renovating your home—restate your principle: stay within budget vs. maximize square footage, then resolve trade-off debates.
  • Launching a side project—clarify your core mission (user education) so you can choose between building a full site or a simple app.
Trillion Dollar Coach
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Trillion Dollar Coach

Eric Schmidt, Jonathan Rosenberg, Alan Eagle 2019
Insight 5 of 8

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