Problems arise in every workplace at every scale—even in a workforce of two. As a reality of the workplace, organizations showcase their adaptability by encouraging problem-solving at every level of the workforce.
Organizations have a real problem if they aren’t capable of adequately handling them in the first place. Whether it’s an issue with the end-user experience, a miscalculation of a problem’s target audience demographics, or an internal design or research issue, if the problem impacts your bottom line in any capacity, it’s a problem worth solving.
That’s where the value of problem statements shines. Professionally driven problem statement programs provide organizations with the resources to address and resolve problems whenever they arise and grow past them into a more effective unit.
Learn how to implement better problem statements to overcome any problem in your organization.
What is a problem statement?
A problem statement is a document that outlines a specific problem in an organization. For instance, problem statements often refer to inefficiencies in a given workplace process that hinder progress in a project or task.
But a problem statement is more than a simple statement of the problem. Problem statements provide viable solutions, allowing management to launch an improvement project and solve the problem.
Problem statements come from all sorts of employees. A team member’s point of view helps management gain a higher-resolution picture of the problem from a hands-on level.
Importance of a problem statement
Identifying and resolving problems effectively—wherever they arise—is a massive predictor of success for employers as much as it is for employees. Organizations that fail to learn from their problems are not likely to grow.
For that reason, problem statements are of paramount importance. An effective problem statement program provides management with an invaluable internal diagnostic to find their best solution.
Problem statements provide a system-wide analysis of workflow, talent, product quality, and other key indicators of organizational success. They shine a light on issues that demand resolution. The more problem statements you have, the more opportunity for growth.
Main components of a problem statement
A problem statement is a means to communicate issues that affect value generation. As a communicative document, problem statements must follow a clear, concise format so that management is informed and advised on how to proceed with a solution.
A great problem statement must have a few primary components. Here are elements of a problem statement that are wise to include.
1. Who: How the problem affects others
The most important part of the problem statement is how the problem affects organizational capability and its stakeholders—folks affected by the issue. Any organization must confront difficulties, big or small. By outlining the negative potential of a problem, its costs, and risks if left unaddressed, you inform management on how to take action toward a solution.
2. What: Explain the problem
The first step to finding a solution is understanding the problem entirely. Explaining the situation in detail provides a clear overview that promotes actionable solutions. When management understands the nature of the problem, they have the means to implement practical solutions.
3. Where: The location where the problem occurs
Problems arise anywhere within an organization. Whether it’s the specifics of the physical location—a factory floor, by department, HR, production line, etc.—locating the problem provides vital information about the problem’s context and the best people to effect solutions.
4. When: Timing of the problem
Like location, the timing of the problem provides vital context into the nature of the problem. Noting when the problem occurred or if it occurred during a particular part of a sequence provides insight into potential causes. Additionally, identifying the timing of the problem helps create a timeline; how long the problem has persisted, and how pressing a solution is.
5. Why it occurs: Importance of the problem
With an outline of the problem, where it occurs, and when, providing a detailed theory on why the problem happens ties the problem statement into a clear, actionable format. The deeper the insight on why the problem occurs, makes the closing and most important part of the problem statement.
6. The proposed solution
The actual value of a problem statement is its proposed solution. Identifying problems within the organization is a benefit on its terms, but with a solution attached, management has the ability to swiftly take action and address the issue. Employees closest to the problem are the ones drafting problem statements. Their perspective often makes all the difference in finding its solution.
How to spot a problem statement
The inciting factor to a problem statement is the problem. While many common problems are notorious, some aren’t easy to identify. Furthermore, finding issues before they make themselves known is even more difficult.
A workforce equipped with the means to spot problems early often gives management the insights to address them quickly. Information and communication are the two biggest assets in identifying problems and their root causes.
Firstly, it is wise for employers to empower employees with all the necessary resources to compile information relevant to problems they encounter: records of past problems and their solutions, training about identifying indirect markers of problems, etc.
Secondly, a workforce that promotes open communication retains high-level alertness to potential problems. When employees share their perspectives or pass along their feedback in an open communication chain, word of rising problems gets to management before they spiral out of control.
Using problem statements
Because the nature of problems is often hyper-specific to a given organization’s needs, the applications of problem statements risk becoming confused. Problems are ubiquitous in an organization.
But don’t get overwhelmed. The point of problem statements is to give clarity to any problem. Problem statements have vast applications across almost any organization. Here are a few examples of how people use problem statements:
- Included in an executive summary
- Identifying issues affecting product or service quality
- Addressing delays in project progress
- Building rapport between different teams working across a project
- Correcting flagging KPIs
- Promote brainstorming for potential solutions
- Launch a research proposal
What are the benefits of problem statements?
Setting the objectives of a project
Problem statements create a singular objective by identifying problems and providing solutions. When teams quickly become disorganized by multi-faceted aspects of a project, a problem statement to follow provides clarity and perspective on the expectations and goals for the project.
Helps to highlight specific objectives of a project
Results stem from specific tasks that serve the overarching goal of the project. Problem statements are adaptable to scale. They often underline key elements at work within the finer details of a project to ensure that all teams are aware of potential pitfalls.
A problem statement helps identify opportunities more clearly
Problem statements promote growth by focusing on obstacles to success and removing them. Problems point to where an organization lacks or finds a pain point holding it back. Every problem possesses the seed for a new opportunity. Organizations often identify what stands between them and greater success by addressing them.
9 steps on how to write a problem statement
1. Collect data and observe
Effective problem-solving is firmly grounded in verifiable data. Before you start writing problem statements, make level-headed observations and make sure the data backs them up.
2. Give context
Getting a high-resolution picture of a problem provides the details needed to get to the root of the problem and its solution. When setting out to write a problem statement, be sure to keep the context in mind—when, where, and how the problem fits into larger systems.
3. Clearly outline the problem
Problem statements succeed or fail by their clarity. Problems thrive in ambiguity. When a problem statement precisely outlines a problem, there’s little room for confusion that allows it to persist.
4. State the financial costs of the problem
Not all problems are of equal significance. The financial costs of an issue are a necessary qualifying metric that indicates its severity and risks to the organization. To make those risks clear to management, ensure you include the problem’s costs in a statement.
5. Back up your findings
Nothing is more persuasive than verified research. When outlining the nature of the problem, strengthen your case with reliable, objective findings you’ve made while investigating it.
6. Provide a possible solution
Identifying a problem creates a critical piece of information. But the value of that information doesn’t come from the problem, but its solution. Provide one or several possible solutions to the problem so that management has a running start.
7. State the advantages of the solution proposed
Problems possess new opportunities. Demonstrate how your proposed solution doesn’t just solve the problem but provides advantages that promote better performance, improved metrics, and other indications of success.
8. Close by summing up the problem and the solution
A great problem statement takes the reader on a journey. To bring them full circle, restate the problem and its solution after the problem statement.
9. Stay curious
Who knows how many problems await us on the road ahead? By staying curious and seeking out problems, we don’t just protect our performance from unforeseen risks; we find new growth opportunities.
Things to avoid when writing a problem statement
Avoid using complicated language
Let the problems speak for themselves. Keep to the point when writing a problem statement and avoid complicated language. By being straightforward, you leave less room for the kinds of confusion that help problems thrive.
Do not refer to the previous or similar problems
Referring to other problems will only confuse your statement; a good problem statement sticks to the current problem.
Avoid using very technical language
Many different people read problem statements. Jargon that makes sense to peers in one area won’t make sense to wider audiences—keep away from technical language.
What is an example of a problem statement?
By now, you’re probably excited to start writing your problem statements. But what does that look like?
Just like every problem is different from another, problem statements vary significantly—from a sentence or two to several paragraphs. Let’s review examples of problem statements, with two templates showcasing what they look like.
Template 1: An e-commerce brand experiences high abandoned cart rates
The current abandoned cart rate for our newly launched Product X is 79%. Our sales team has corroborated these results by dividing the total completed transactions for Product X by the total initiated sales. Research indicates the average is 69.99%, meaning we currently lose at least 10% of potential sales.
Including abandoned cart emails specific to Product X reaffirms the customer’s interest in purchasing the product while strengthing the personal touch elements of our brand image.
We have the ability to reduce our higher-than-normal rates of abandoned carts with targeted abandoned cart emails to increase sales of Product X.
Template 1 Explanation
This problem statement started strong with a clear outline of the problem: the abandoned cart rate. The opening paragraph highlights the extent of this problem by referencing qualified data and failure to meet industry standards.
The proposed solution is clear and provides more than one advantage to the organization: increasing sales and defining brand identity. The problem and solution are again summarized straightforwardly to close out the statement.
Template 2: An organization sees flagging employee engagement
Employee engagement surveys from the past two quarters report that employees’ sense of fulfillment has decreased by 12%, which indicates higher rates of unproductive burnout and decreased productivity.
Comparative analysis of the question “I feel fulfilled with my work” yielded a 12% increase in “Somewhat disagree” responses, a 7% decrease in “Strongly agree” answers, and a 5% decrease in “Somewhat agree” responses YTD.
Employing competitive compensation strategies increase employee engagement metrics and attract dedicated talent.
Opening up new opportunities for remote work is a way to resolve flagging employee engagement metrics.
Template 2 Explanation
This problem statement opens with a finding from inter-organization surveys that employees are less engaged than a year ago; specific data corroborates this state of affairs.
Dissatisfied, burnt-out employees hinder productivity, which strains the organization’s capability.
The statement then cites trends that indicate competitive compensation strategies don’t just raise employee engagement but also attract qualified talent. It closes by reaffirming the problem and its solution.
Unlocking innovation and creativity with problem statements
Problem statements are your means to turn the right problem into the right opportunity. By articulating a problem and finding its solution, you make the first step toward overcoming the obstacles in your way.
When problems overwhelm you, remember that they possess the potential for new opportunities–you just have to find them.
Here’s a Payscale problem statement with proven solutions: Struggling to retain top talent at your organization?
Learn how to improve hiring metrics by writing a perfect job description or implementing an incentive pay program that attracts more qualified candidates
