Step 1: Understand the Problem

Business Challenge:

• [What problem needs to be solved?]
• [What does success look like?]
• [What are the constraints?]

  Management Objective:

• [What does leadership want to achieve?]
• [What's driving this initiative?]
• [Who are the key stakeholders?]

  Step 2: Break Down the Problem

Use MECE structure to disaggregate:

Key Drivers:

• [Driver 1: e.g., Customer acquisition]
• [Driver 2: e.g., Product pricing]
• [Driver 3: e.g., Competitive positioning]
• [Driver 4: e.g., Operational efficiency]

  Step 3: Form Initial Hypotheses

For each key driver, create hypotheses:

Driver 1 - Customer Acquisition:

• Hypothesis: Our CAC is 3x industry average because we're targeting wrong customers
• How to test: Compare CAC by customer segment, analyze conversion rates
• Data needed: CAC by segment, conversion rates, customer profiles

  Driver 2 - Product Pricing:

• Hypothesis: We're underpricing by 20% based on value delivered
• How to test: Conduct pricing research, compare to value benchmarks
• Data needed: Customer willingness to pay, competitor pricing, value metrics

  Driver 3 - Competitive Positioning:

• Hypothesis: We're losing deals to competitors with better messaging
• How to test: Analyze win/loss reasons, review competitor positioning
• Data needed: Win/loss data, competitor analysis, sales team feedback

  Driver 4 - Operational Efficiency:

• Hypothesis: Operational waste is costing us 15% margin
• How to test: Analyze process inefficiencies, benchmark against best practices
• Data needed: Process maps, time studies, cost data

  Step 4: Prioritize Hypotheses

Use Impact-Effort Matrix:

High Impact, Easy to Test (Do First):

• [Hypothesis name] - Testing approach

  High Impact, Hard to Test (Do Second):

• [Hypothesis name] - Testing approach

  Low Impact (Defer or Skip):

• [Hypothesis name] - Why not worth testing

  Step 5: Test Hypotheses Systematically

For each prioritized hypothesis:

Hypothesis: [State the hypothesis]

Testing Plan:

• Analysis method: [Specific analysis to run]
• Data sources: [Where to get data]
• Owner: [Who conducts analysis]
• Timeline: [When to complete]
• Success criteria: [What proves/disproves hypothesis]

  Findings:

• ✅ Hypothesis proven: [What we learned]
• ❌ Hypothesis disproven: [What we learned]
• ⚠️ Inconclusive: [What more we need]

  Step 6: Synthesize and Iterate

Key Insights:

• [Insight 1 from testing]
• [Insight 2 from testing]
• [Insight 3 from testing]

  Revised Hypotheses:

• [New hypothesis based on learnings]
• [What needs to be tested next]

  Recommendations:

• [Recommendation 1]
• [Recommendation 2]
• [Recommendation 3]

  ---

  Hypothesis Testing Examples

  #