How to apply first principles to grasp the essence in negotiations?

Good question. This concept might sound profound, but in essence, it's quite simple. I'll try to explain it to you in plain language.

In our daily negotiations, most people operate by "analogy" or "imitation."

For example, if you want a raise, you might think:

• "Old Wang in our department got a 15% raise last year, so I should get that much too." (This is comparing yourself to others)
• "The average salary for my position in the market is XX, so the company should pay me that." (This is referencing market rates)
• "I asked for a raise last year and the boss gave me 8%, so this year it should at least be higher than last year." (This is comparing yourself to your own past)

You see, the basis for these thoughts is always something that already exists; it's "others do it this way, so I should too." It's like copying homework; whatever others do, I do. At the negotiation table, this turns into a tug-of-war over "positions": "I want 15%," "I can only give 8%." Everyone argues within a fixed framework, which easily leads to a stalemate.

"First Principles" means you simply discard all these "reference answers" and, like a curious child, ask the most fundamental questions.

Applied to negotiation, there are three steps:

Step One: Deconstruct your own needs and find your "fundamental purpose."

Before negotiating, don't immediately think about the specific number "I want a 15% raise." Instead, ask yourself a series of "why" questions:

• Why do I want a raise? — Because the cost of living has increased, and I want to live more comfortably.
• Besides money, is there anything else I want? — I also want recognition; I worked so hard on that project last year, there should be some acknowledgment.
• If the money isn't sufficient, is there anything else that would satisfy me? — A "Senior Manager" title? Or an extra week of paid leave? Or permission to work from home two days a week?

You see, once you break it down like this, your need is no longer just the dry number "15%." Your "First Principle" or "fundamental purpose" is: 1. Improve quality of life; 2. Gain a sense of accomplishment and recognition.

Money is just one means to achieve these ends, not the only one.

Step Two: Guess the other party's "fundamental purpose" and "fundamental constraints."

Why might your boss or HR disagree with your request? Don't just think, "the company is stingy." Use First Principles to guess:

• Why would they refuse? — It might be due to the company's overall budget limitations, not specifically targeting me.
• What difficulties do they face? — They might be afraid that if I get a raise, other colleagues will complain, disrupting team fairness.
• What is their fundamental purpose? — They want to retain me, a productive employee, while also not breaking rules and controlling costs.

You see, the other party's fundamental purpose isn't "they don't want to give you money," but rather "to retain valuable employees within rules and cost limits."

Step Three: Starting from both parties' "fundamental purposes," re-create a solution.

Now, put both parties' fundamental purposes on the table:

• Your purpose: Improve quality of life + gain recognition
• Other party's purpose: Control costs + maintain fairness + retain you

Alright, now stop talking about "15%" and "8%." You can start discussing entirely new possibilities:

• "Boss, I understand the company's budget is under pressure. We can settle on an 8% salary increase, but considering the hard work on last year's project, could I receive a one-time project bonus? This wouldn't affect the salary structure and would still show recognition for my efforts."
• "Alternatively, with an 8% salary increase, could my job title be elevated by one level? This is very important for my future development and also serves as recognition."
• "If neither salary nor title can be adjusted for now, could I work remotely two days a week? This would save me commuting time and money, which also improves my quality of life."

Do you see? Once you break out of the dead loop of "I want A, you only give B," and start from both parties' deepest needs, you can create many options C, D, and E that didn't exist before. These new options satisfy your fundamental needs while respecting the other party's fundamental constraints.

To summarize:

Using First Principles in negotiation means not immediately entering an argument with a fixed "position." Instead, it's about stripping both yourself and the other party back to basics, understanding what everyone truly wants and fears deep down. Then, like building with blocks, use these most fundamental "needs" and "constraints" to jointly construct a new solution that both parties can accept.

This transforms you from a "bargainer" into a "problem-solver." It completely broadens your perspective.