Problem Statement: What It Is And Examples

Problem statements are a document that evaluates a problem and presents a solution to it. Having a written problem statement helps to determine the issue that you’re trying to ameliorate, as well as how you plan to go about it. It ensures that everyone on the team knows what the goal is and the steps needed to achieve it.

If you’re writing a problem statement, have been presented with a problem statement, or just want to know what that is, then keep reading. Problem statements are official business documents, which means that there are standards for writing them.

Key Takeaways:

• A problem statement evaluates an issue for a business and presents one or several solutions to highlight the necessity of fixing the problem.

• A problem statement helps clarify goals and generates support for its solutions.

• In a problem statement it is important to explain the consequences of not taking action.

• Solutions in a problem statement must be backed up with evidence to persuade stakeholders.

What is a business problem statement?

A business problem statement is an evaluation of an issue expected to be addressed or a specific condition that can be improved upon in a timely manner. The problem statement briefly explains the issue at hand. It should address the current state, the desired future state of the problem, and any gaps identified between the two.

Articulating a problem statement is an important tool to help communicate to your team what they’re trying to solve on any given project. Ensuring everyone on your team understands the problem at hand ensures everyone is on the same page and working towards the same goal. It also ensures everyone understands the importance of the project and what, specifically, they’re working towards.

This statement should be entirely objective, and free of subjective opinions. This might be difficult, especially if you are living with this problem and have been for a while.

An easy way to approach this is to ask who, what, when, where, and why, and create the structure of your problem statement from there. This will create a logical and sensible problem statement that you can share with your team. By ensuring it’s easy to comprehend, you ensure it’s a feasible solution.

Why is a problem statement important?

A problem statement is important for a project that’s reaching for improvement because it will clearly identify goals and outline a clear path for a solution. It will help guide the activities and decisions of people working on the project.

Additionally, if you require funding or buy-in on your project, a problem statement can help a business or organization gain support. This allows stakeholders to verify the problem and goals as accurate and valuable before they provide their support.

A problem statement is a guiding light for any project. It can establish focus and ensure the team stays on task. At the end of the project, a team can look back on the problem statement and any associated metrics and ensure what they’ve accomplished truly solves the problem identified at the start of the project.

It’s important to understand that the problem statement doesn’t define all the details of a solution or tasks necessary to reach that solution. It’s simply the declaration of the problem and the gap between it and the goal you’re looking to achieve.

How to write a problem statement

A written problem statement needs to be as clear and accurate as possible. That allows for both the problem and solution to be easy to understand and work towards. Also, a problem statement is a business document, which means that there are expectations in terms of how it’s written and formatted.

1. Describe your ideal process. Context is necessary to ensure everyone understands the problem at hand. The best way to articulate this is to describe how the process should actually work if the current issue didn’t exist. Keep the end-user in mind when you’re going through this process.

   Always keep in mind who, what, when, where, and why to keep yourself on track and avoid falling into the trap of including biased opinions rather than facts.

2. Explain the problem and why it matters. The problem statement should not just include the “what” of the problem, but “why” it’s a problem and why it’s so vital that you develop a solution. Ask yourself, why should we fix the problem?

   This section will address what the problem is, who is affected, and why it needs to be solved. Consider including previous attempts of creative problem solving the issue at hand and why they may not have offered the solution necessary to fix the issue.

3. Include financial costs. The stakeholders (such as designers, partners, or rate analysts) who analyze your problem statement want to understand the financial implications of the effort. To that end, you’ll want to avoid talking about all the money that needs to be poured into it. Instead, explain how costly it may be if the problem is not fixed.

   Seeing this financial issue will hook some businesspeople, as their efforts are centered around being as cost-efficient as possible. Most likely, the problem at hand is adding more cost to any given project, and it could even damage the company brand or public image.

   So make sure you explain this by putting potential losses front and center. The more specific you can get, the better.

4. Come with proof. If you’re claiming that the problem is costing the company more money, you need to come up with evidence. You should be prepared for difficult questions and knowing specifics to back up your claims. Do not neglect this step.

   If you come unprepared with this information, your stakeholders or team members might not take your urgency seriously, and you may not be able to solve the problem the way you’d like to. Ensure you do plenty of research, cite all sources, and ensure they are credible.

5. Propose a solution. Your problem statement should also include your initial proposed solution to the problem. You shouldn’t focus on finding a single executable solution, but you should have a good idea of what is causing the problem and how you imagine solving it will look practically. State the objectives of your solution to really hook your stakeholders.

6. Give solution benefits. After you’ve pointed out the problem, explained the cost concerns of not solving it, and proposed some solutions, you should demonstrate why your solutions will work.

   Focus on the solution’s efficiency and financial impact and always tie it back to how it will help the organization. Go into details here to explain how the solution will directly benefit the team or company. You should aim to fix this into a single, short paragraph.

7. Conclude with a summary. The final piece of your problem statement is to conclude by summarizing what you’ve already stated. Summarize the problem, why it needs to be fixed, and a summarized argument of why your solution is the fix.

   This will help ensure the readers that they’ve accurately understood what you’re trying to solve. It will also help you to know when the problem is solved.

Problem statement example

A second way to write a problem statement

There isn’t only one way to write a problem statement. Some industries prefer to break it out into four sections so it reads more like a report and less like a letter. If this is what the industry you work in prefers, or if it just makes more sense to you, you can instead format the problem statement this way.

1. Ideal. This part’s pretty similar to the method we described above. Start by considering exactly what you want the end result to be in an ideal world. This can also be described as your vision. It’s important to be descriptive but brief, as it should be simple to answer whether the problem has been solved or not at the end.

2. Reality. Next, describe how things currently stand. Pay special attention to the issues that are standing in the way of your idealized version of the process.

3. Consequences. Describe what’s at stake. You can go into current losses that the organization is facing due to this unresolved issue or project and predict the future consequences of inaction.

4. Proposal. Finally, propose a solution. You can also briefly touch on how you’ll check in to ensure progresis being made. Note that you can propose a variety of solutions, as long as you also describe (or have a plan for) how you’ll actually carry each solution out.

Example Problem Statement #2

Final thoughts

Problem-solving begins by identifying and defining the problem to be solved, and a problem statement is a great way to organize this process. Using a problem statement will help make sure that everyone understands the problem and is on the same page, and can also help you lay out the plan for addressing the problem.

Problem statement FAQs

1. Do problem statements work?

Yes, problem statements do work and are very helpful for businesses. A problem statement provides an effective way for a team to analyze a problem. It clarifies the issue at hand, what the cost of the issue is incurring on the business, and what solutions are available to improve the situation.

2. How do you write a problem statement?

A problem statement can be written in a variety of ways, however it is important to retain certain key elements. The key elements of a problem statement include describing the ideal situation, the problem at hand, the consequences for not solving the problem, and a solution with proof to back it up.

3. Does my solution to a problem statement need evidence or proof that it will work?

Yes, your problem statement’s solution should come with evidence or proof to back it up. People in most business settings will not take a solution to a problem seriously unless they can see tangible benefits. This means that while you compose a problem statement it is important to do research into your solutions.

4. Does a problem statement have to be long?

   No, a problem statement does not have to be long. There are a variety of different formats for problem statements, and they can be as long as or brief as you want. However, you should make sure that your problem statement covers pertinent details and gives sufficient information.

5. What are the five W’s and how do they relate to problem statements?

   The five W’s refer to the different question words: who, what, when, where, and why. Well-written problem statements address each of these questions and explain where the solution goes from there. Here’s how you can incorporate each of these into a problem statement.

   • Who. The who in a problem statement can refer both to the people who have a stake in the problem, as well as the people who are most qualified to work on the solution. Who can also refer to the people that the problem statement is aimed at.

   • What. This is where you address what the current problem is. You need to answer what the problem is, what its effects are, and what you need to do to fix it.

   • Where. The answer to this can be physical — what building, for instance. Or it can be more abstract, in terms of what department or where the problem will have the greatest effect.

   • When. Creating a timeline is an important aspect of a problem statement. This is both in terms of when the problem will become an impediment (if it hasn’t already) and when you need to start working on your solutions.

   • Why. The why section is where you explain yourself. Why are you writing up a problem statement, why does it require a solution, and why is implementing this solution better and more effective?

References

1. MasterClass — Problem Statements: How to Write a Problem Statement

Author

Caitlin Mazur

Caitlin Mazur is a freelance writer at Zippia. Caitlin is passionate about helping Zippia’s readers land the jobs of their dreams by offering content that discusses job-seeking advice based on experience and extensive research. Caitlin holds a degree in English from Saint Joseph’s University in Philadelphia, PA.