The Hypothesis-Driven Approach: Thinking Like a Consultant

In real consulting work—and in case interviews—one of the most effective ways to solve problems is using a hypothesis-driven approach. Rather than diving into every possible angle, you start with a logical guess (a hypothesis) and then test it using structured analysis.

This doesn’t replace frameworks like 3C1P—it enhances them. In fact, the best candidates combine both approaches: they use a framework to structure their thinking, and they tailor it to prove or disprove their hypothesis.

What Is the Hypothesis-Driven Approach?

A hypothesis is simply an educated guess. For example:

“I think the company is losing market share because competitors have launched lower-priced alternatives.”

This initial hypothesis is not random—it’s informed by the case prompt and your business intuition. You then analyze the case by focusing on the areas that would confirm or contradict this theory.

The key benefit? You avoid trying to “boil the ocean.” Instead of exploring every part of the business equally, you focus only on what matters most to solving the case.

How It Works with Frameworks Like 3C1P

This approach works best in combination with a clear framework like 3C1P (Customer, Competitor, Company, Product). The framework gives you structure. The hypothesis gives you direction.

Let’s say your hypothesis is: “We’re losing market share because customers are switching to a cheaper competitor.” You can still use 3C1P—but now, the questions you ask under each category will be sharply focused:

• Customer: Are customers price-sensitive? Have we seen a drop in loyalty or repeat purchases?

• Competitor: Has a new low-cost player entered the market? What pricing strategies are they using?

• Company: How do our prices compare? Can we afford to lower them? Do we have cost disadvantages?

• Product: Are there quality or feature gaps justifying the price difference?

You don’t need to ask every possible question in each area—just the ones that help test your theory. This is how strong candidates combine structure with business judgment.

Why Interviewers Love It

This approach mirrors how real consulting projects work: you start with a hunch, test it, learn, and refine. It shows the interviewer you can:

• Structure your thinking quickly

• Focus your analysis where it matters

• Adapt your view when the data points elsewhere

It’s not about being right at the start—it’s about being smart in how you explore.

How to Apply It in a Case Interview

1. State a hypothesis early. After the prompt, take a moment and offer a logical guess: “I think profits may be down due to rising customer acquisition costs.”

2. Use a framework to structure your analysis. Choose a framework that fits the case—e.g., profitability, market entry, or 3C1P. Then, tailor your questions to test your hypothesis.

3. Refine as you go. As you get more data, adjust your hypothesis. For instance, you may find customer acquisition costs are flat, but logistics costs are spiking. Update your direction accordingly.

4. Draw a focused conclusion. At the end, clearly state what you learned and how your thinking evolved. This shows you’re able to synthesize and drive to recommendations.

The hypothesis-driven approach is not a standalone trick—it’s a mindset. And when combined with frameworks like 3C1P, it becomes incredibly powerful.

Start with a direction. Use structure to stay organized. And always let the data guide you. That’s how real consultants solve problems—and it’s what your interviewer wants to see.