How to Write a Problem Statement (With 3 Examples) (2023)

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We’ve all encountered problems on the job. After all, that’s what a lot of work is about. Solving meaningful problems to help improve something.

Developing a problem statement that provides a brief description of an issue you want to solve is an important early step in problem-solving.

It sounds deceptively simple. But creating an effective problem statement isn’t that easy, even for a genius like Albert Einstein. Given one hour to work on a problem, he’d spend 55 minutes thinking about the problem and five minutes finding solutions. (Or so the story goes.)

Einstein was probably exaggerating to make a point. But considering his success in solving complex problems, we think he was on to something.

As humans, we’re wired to jump past the problem and go directly to the solution stage. In emergencies, this behavior can be lifesaving, as in leaping out of the way of a speeding car. But when dealing with longer-range issues in the workplace, this can lead to bad decisions or half-baked solutions.

That’s where problem statements come in handy. They help to meaningfully outline objectives to reach effective solutions. Knowing how to develop a great problem statement is also a valuable tool for honing your management skills.

But what exactly is a problem statement, when should you use one, and how do you go about writing one? In this article, we'll answer those questions and give you some tips for writing effective problem statements. Then you'll be ready to take on more challenges large and small.

What is a problem statement?

First, let’s start by defining a problem statement.

What is a problem statement?

A problem statement is a short, clear explanation of an issue or challenge that sums up what you want to change. It helps you, team members, and other stakeholders to focus on the problem, why it’s important, and who it impacts.

A good problem statement should create awareness and stimulate creative thinking. It should not identify a solution or create a bias toward a specific strategy.

When to use a problem statement

The best time to create a problem statement is before you start thinking of solutions. If you catch yourself or your team rushing to the solution stage when you’re first discussing a problem, hit the brakes. Go back and work on the statement of the problem to make sure everyone understands and agrees on what the real problem is.

Here are some common situations where writing problem statements might come in handy:

Writing an executive summary for a project proposal or research project

Collaborating on a cross-functional project with several team members

Defining the customer issue that a proposed product or service aims to solve

Using design thinking to improve user experience
Tackling a problem that previous actions failed to solve

How to identify a problem statement

Like the unseen body of an iceberg, the root cause of a specific problem isn’t always obvious. So when developing a problem statement, how do you go about identifying the true, underlying problem?

These two steps will help you uncover the root cause of a problem:

Collect information from the research and previous experience with the problem
Talk to multiple stakeholders who are impacted by the problem

People often perceive problems differently. Interviewing stakeholders will help you understand the problem from diverse points of view. It can also help you develop some case studies to illustrate the problem.

Combining these insights with research data will help you identify root causes more accurately. In turn, this methodology will help you craft a problem statement that will lead to more viable solutions.

What are problem statements used for?

You can use problem statements for a variety of purposes. For an organization, it might be solving customer and employee issues. For the government, it could be improving public health. For individuals, it can mean enhancing their own personal well-being. Generally, problem statements can be used to:

Identify opportunities for improvement
Focus on the right problems or issues to launch more successful initiatives – a common challenge in leadership
Help you communicate a problem to others who need to be involved in finding a solution
Serve as the basis for developing an action plan or goals that need to be accomplished to help solve the problem
Stimulate thinking outside the boxand other types of creative brainstorming techniques

3 examples of problem statements

When you want to be sure you understand a concept or tool, it helps to see an example. There can also be some differences in opinion about what a problem statement should look like. For instance, some frameworks include a proposed solution as part of the problem statement. But if the goal is to stimulate fresh ideas, it’s better not to suggest a solution within the problem statement.

In our experience, an effective problem statement is brief, preferably one sentence. It’s also specific and descriptive without being prescriptive.

Here are three problem statement examples. While these examples represent three types of problems or goals, keep in mind that there can be many other types of problem statements.

Example Problem Statement 1: The Status Quo Problem Statement

Example:

The average customer service on-hold time for Example company exceeds five minutes during both its busy and slow seasons.

This can be used to describe a current pain point within an organization that may need to be addressed. Note that the statement specifies that the issue occurs during the company’s slow time as well as the busy season. This is helpful in performing the root cause analysis and determining how this problem can be solved.

Problem:

The average customer service on-hold time for Example company exceeds five minutes during both its busy and slow seasons. The company is currently understaffed and customer service representatives are overwhelmed.

Background:

Example company is facing a significant challenge in managing their customer service on-hold times. In the past, the company had been known for its efficient and timely customer service, but due to a combination of factors, including understaffing and increased customer demand, the on-hold times have exceeded five minutes consistently. This has resulted in frustration and dissatisfaction among customers, negatively impacting the company's reputation and customer loyalty.

Relevance:

Reducing the on-hold times for customer service callers is crucial for Example company. Prolonged waiting times have a detrimental effect on customer satisfaction and loyalty, leading to potential customer churn and loss of revenue. Additionally, the company's declining reputation in terms of customer service can have a lasting impact on its competitive position in the market. Addressing this problem is of utmost importance to improve customer experience and maintain a positive brand image.

Objectives:

The primary objective of this project is to reduce the on-hold times for customer service callers at Example company. The specific objectives include:

Analyzing the current customer service workflow and identifying bottlenecks contributing to increased on-hold times.
Assessing the staffing levels and resource allocation to determine the extent of understaffing and its impact on customer service.
Developing strategies and implementing measures to optimize the customer service workflow and reduce on-hold times.
Monitoring and evaluating the effectiveness of the implemented measures through key performance indicators (KPIs) such as average on-hold time, customer satisfaction ratings, and customer feedback.
Establishing a sustainable approach to maintain reduced on-hold times, taking into account both busy and slow seasons, through proper resource planning, training, and process improvements.

Example Problem Statement 2: The Destination Problem Statement

Example:

Leaders at Example company want to increase net revenue for its premium product line of widgets by 5% for the next fiscal year.

This approach can be used to describe where an organization wants to be in the future. This type of problem statement is useful for launching initiatives to help an organization achieve its desired state.

Like creating SMART goals, you want to be as specific as possible. Note that the statement specifies “net revenue” instead of “gross revenue." This will help keep options open for potential actions. It also makes it clear that merely increasing sales is not an acceptable solution if higher marketing costs offset the net gains.

Problem:

Leaders at Example company aim to increase net revenue for its premium product line of widgets by 5% for the next fiscal year. However, the company currently lacks the necessary teams to tackle this objective effectively. To achieve this growth target, the company needs to expand its marketing and PR teams, as well as its product development teams, to prepare for scaling.

Background:

Example company faces the challenge of generating a 5% increase in net revenue for its premium product line of widgets in the upcoming fiscal year. Currently, the company lacks the required workforce to drive this growth. Without adequate staff in the marketing, PR, and product development departments, the company's ability to effectively promote, position, and innovate its premium product line will be hindered. To achieve this kind of growth, it is essential that Example company expands teams, enhances capabilities, and strategically taps into the existing pool of loyal customers.

Relevance:

Increasing net revenue for the premium product line is crucial for Example company's overall business success. Failure to achieve the targeted growth rate can lead to missed revenue opportunities and stagnation in the market. By expanding the marketing and PR teams, Example company can strengthen its brand presence, effectively communicate the value proposition of its premium product line, and attract new customers.

Additionally, expanding the product development teams will enable the company to introduce new features and innovations, further enticing existing and potential customers. Therefore, addressing the workforce shortage and investing in the necessary resources are vital for achieving the revenue growth objective.

Objectives:

The primary objective of this project is to increase net revenue for Example company's premium product line of widgets by 5% in the next fiscal year. The specific objectives include:

Assessing the current workforce and identifying the gaps in the marketing, PR, and product development teams.
Expanding the marketing and PR teams by hiring skilled professionals who can effectively promote the premium product line and engage with the target audience.
Strengthening the product development teams by recruiting qualified individuals who can drive innovation, enhance product features, and meet customer demands.
Developing a comprehensive marketing and PR strategy to effectively communicate the value proposition of the premium product line and attract new customers.
Leveraging the existing base of loyal customers to increase repeat purchases, referrals, and brand advocacy.
Allocating sufficient resources, both time and manpower, to support the expansion and scaling efforts required to achieve the ambitious revenue growth target.
Monitoring and analyzing key performance indicators (KPIs) such as net revenue, customer acquisition, customer retention, and customer satisfaction to measure the success of the growth initiatives.
Establishing a sustainable plan to maintain the increased revenue growth beyond the next fiscal year by implementing strategies for continuous improvement and adaptation to market dynamics.

Example Problem Statement 3 The Stakeholder Problem Statement

Example:

In the last three quarterly employee engagement surveys, less than 30% of employees at Eample company stated that they feel valued by the company. This represents a 20% decline compared to the same period in the year prior.

This strategy can be used to describe how a specific stakeholder group views the organization. It can be useful for exploring issues and potential solutions that impact specific groups of people.

Note the statement makes it clear that the issue has been present in multiple surveys and it's significantly worse than the previous year. When researching root causes, the HR team will want to zero in on factors that changed since the previous year.

Problem:

In the last three quarterly employee engagement surveys, less than 30% of employees at the Example company stated that they feel valued by the company. This indicates a significant decline of 20% compared to the same period in the previous year.

The company aspires to reduce this percentage further to under 10%. However, achieving this goal would require filling specialized roles and implementing substantial cultural changes within the organization.

Background:

Example company is facing a pressing issue regarding employee engagement and perceived value within the company. Over the past year, there has been a notable decline in the percentage of employees who feel valued. This decline is evident in the results of the quarterly employee engagement surveys, which consistently show less than 30% of employees reporting a sense of value by the company.

This decline of 20% compared to the previous year's data signifies a concerning trend. To address this problem effectively, Example company needs to undertake significant measures that go beyond superficial changes and necessitate filling specialized roles and transforming the company culture.

Relevance:

Employee engagement and a sense of value are crucial for organizational success. When employees feel valued, they tend to be more productive, committed, and motivated. Conversely, a lack of perceived value can lead to decreased morale, increased turnover rates, and diminished overall performance.

By addressing the decline in employees feeling valued, Example company can improve employee satisfaction, retention, and ultimately, overall productivity. Achieving the desired reduction to under 10% is essential to restore a positive work environment and build a culture of appreciation and respect.

Objectives:

The primary objective of this project is to increase the percentage of employees who feel valued by Example company, aiming to reduce it to under 10%. The specific objectives include:

Conducting a comprehensive analysis of the factors contributing to the decline in employees feeling valued, including organizational policies, communication practices, leadership styles, and cultural norms.
Identifying and filling specialized roles, such as employee engagement specialists or culture change agents, who can provide expertise and guidance in fostering a culture of value and appreciation.
Developing a holistic employee engagement strategy that encompasses various initiatives, including training programs, recognition programs, feedback mechanisms, and communication channels, to enhance employee value perception.
Implementing cultural changes within the organization that align with the values of appreciation, respect, and recognition, while fostering an environment where employees feel valued.
Communicating the importance of employee value and engagement throughout all levels of the organization, including leadership teams, managers, and supervisors, to ensure consistent messaging and support.
Monitoring progress through regular employee surveys, feedback sessions, and key performance indicators (KPIs) related to employee satisfaction, turnover rates, and overall engagement levels.
Providing ongoing support, resources, and training to managers and supervisors to enable them to effectively recognize and appreciate their teams and foster a culture of value within their respective departments.
Establishing a sustainable framework for maintaining high employee value perception in the long term, including regular evaluation and adaptation of employee engagement initiatives to address evolving needs and expectations.

What are the 5 components of a problem statement?

In developing a problem statement, it helps to think like a journalist by focusing on the five Ws: who, what, when, where, and why or how. Keep in mind that every statement may not explicitly include each component. But asking these questions is a good way to make sure you’re covering the key elements:

Who: Who are the stakeholders that are affected by the problem?
What: What is the current state, desired state, or unmet need?
When: When is the issue occurring or what is the timeframe involved?
Where: Where is the problem occurring? For example, is it in a specific department, location, or region?
Why: Why is this important or worth solving? How is the problem impacting your customers, employees, other stakeholders, or the organization? What is the magnitude of the problem? How large is the gap between the current and desired state?

How do you write a problem statement?

There are many frameworks designed to help people write a problem statement. One example is outlined in the book, The Conclusion Trap: Four Steps to Better Decisions,” by Daniel Markovitz. A faculty member at the Lean Enterprise Institute, the author uses many case studies from his work as a business consultant.

To simplify the process, we’ve broken it down into three steps:

1. Gather data and observe

Use data from research and reports, as well as facts from direct observation to answer the five Ws: who, what, when, where, and why.

Whenever possible, get out in the field and talk directly with stakeholders impacted by the problem. Get a firsthand look at the work environment and equipment. This may mean spending time on the production floor asking employees questions about their work and challenges. Or taking customer service calls to learn more about customer pain points and problems your employees may be grappling with.

2. Frame the problem properly

A well-framed problem will help you avoid cognitive bias and open avenues for discussion. It will also encourage the exploration of more options.

A good way to test a problem statement for bias is to ask questions like these:

Question	Action
Does the problem appear to have only one possible solution?	Look for ways to rephrase it to open up more possibilities.
Does the statement describe a symptom instead of the problem?	Dig deeper for the root cause.
Does the statement suggest the problem is that you don’t have enough time, money, or people?	Find a way to pose the problem that will lead to more creative solutions.
Does the problem statement lack an obvious solution?	Great! You’re probably ready to start exploring solutions.
Does the statement stimulate brainstorming and discussion?	Good job! Keep the discussion going by asking why.

3. Keep asking why (and check in on the progress)

When it comes to problem-solving, stay curious. Lean on your growth mindset to keep asking why — and check in on the progress.

Asking why until you’re satisfied that you’ve uncovered the root cause of the problem will help you avoid ineffective band-aid solutions.

Refining your problem statements

When solving any sort of problem, there’s likely a slew of questions that might arise for you. In order to holistically understand the root cause of the problem at hand, your workforce needs to stay curious.

An effective problem statement creates the space you and your team need to explore, gain insight, and get buy-in before taking action.

If you have embarked on a proposed solution, it’s also important to understand that solutions are malleable. There may be no single best solution. Solutions can change and adapt as external factors change, too. It’s more important than ever that organizations stay agile. This means that interactive check-ins are critical to solving tough problems. By keeping a good pulse on your course of action, you’ll be better equipped to pivot when the time comes to change.

BetterUp can help. With access to virtual coaching, your people can get personalized support to help solve tough problems of the future.

Productivity

Published May 26, 2023