This paper describes theory-led design as a way of developing novel tools for learning analytics (LA). It focuses upon the domain of automated discourse analysis (ADA) of group learning activities to help an instructor to orchestrate online groups in real-time. The paper outlines the literature on the development of LA tools within the domain of ADA, and poses an argument for conducting tool development based upon first-principles. It describes first principles as being drawn from theory and that these principles can subsequently inform the structure and behaviour of tools. It presents a framework for this process of theory-led design. The framework is substantiated through the example of developing a new tool for assisting instructors with the orchestration of online groups. A description of the tool is given and examples of results from use with real-world data are presented. The paper concludes with a call for intent on the part of designers to connect the design process explicitly to theory on the basis that this has the potential to yield innovation when developing tools as well as the prospect of outcomes from tools connecting back to theory.