Some design activities are for creating knowledge for the designer, other activities are for creating understanding for stakeholders, and others are for evaluating assumptions. Sometimes it’s better to hand dig and pan for gold before bringing in the bulldozer. What is the right method? Again — it depends on the project and how much investment you can afford for the results you need.
This first law is simply a question which sets a foundation for designers to intentionally choose a “design way” that is best for their organization: When do you pay for knowledge, and how much will it cost when you pay for it?