How to Write a Problem Statement: An Indispensable Skill in Project Management
The world famous genius Albert Einstein once said that given an hour to save the world, he would spend 55 minutes defining the problem and only 5 minutes thinking of a solution.
While this might be an exaggeration, it shows the importance of properly defining a problem before attempting to come up with a solution.
“If there were a single skill that I could extract from problem solving and get into the hands of people all over the world, it would be the ability to craft a good problem statement. This is one of — if not the — most valuable skill.”
Jamie Flinchbaugh, author of People Solve Problems: The Power of Every Person, Every Day, Every Problem
Before solving a problem, you need to put a good amount of thinking into understanding the problem. Only then can you come up with a simple and straightforward answer that allows you to save money, time, and resources.
While the importance of understanding a problem before attempting to solve it might be obvious, the truth is that most organizations don’t put a lot of significance in defining the problem. When developing new products, processes and businesses, most organizations are only concerned about getting started and finding a solution.
A wrong problem statement can significantly affect a project by causing teams to focus on solving the wrong issue, leading to wasted resources, ineffective solutions, missed opportunities, and ultimately project failure because they are not addressing the root cause of the problem. This can potentially impact stakeholder satisfaction and project success.
In this post, we will delve into details on how to write a good problem statement for your project. We will look at some examples and try to understand how a good problem statement sets apart from a bad one.
1) Confirm That There is a Problem
Before you attempt to develop a solution for a problem, you first need to confirm whether there is actually a problem in the first place.
Very often, businesses set out to solve the wrong problems or problems that are not even there.
To avoid this, you need to go through this step where you try to define the problem in the simplest terms possible. This step clarifies why it is important to find a solution for the problem.
To confirm that you actually have a problem, you need to ask yourself the following questions:
What is the basic problem?
State clearly and concisely the problem you are trying to solve and why you think it is a problem. Define the scope of a problem and the consequences of leaving the problem unsolved.
What are you trying to achieve?
What is the desired outcome if you were to come up with the solution to the problem. This is where most of the projects are conceived on a wrong footing. Organizations don’t take enough time trying to understand the desired outcomes in the context of the customers or other benefits it will bring to the organization.
For example, in the case of annoyed customers, the Project Manager might conclude that the reason for the customer’s anger is due to delays in handing off the critical software module. However, from the customer’s perspective, their annoyance is not due to the delay itself, but rather the lack of transparency in communicating the delay and the current status of the project.
Who will benefit and why?
If you are trying to solve a problem, there needs to be someone who will benefit once it is solved. If you find yourself having a hard time determining who stands to benefit once a solution is in place, this might be an indicator that you don’t really have a problem.
2) Justify Why a Solution is Needed
In the previous step, you articulated the problem you are trying to solve, but is the problem actually worth solving? In this step, you are now trying to determine whether the organization actually needs to come up with a solution for the problem you identified.
To justify the solution, you need to ask yourself the following questions:
Does solving the problem align with organization’s strategy?
Sometimes, you find organizations spending time and resources to come up with solutions, yet solving those problems does not help the company move towards its mission and long-term goals in any way. To avoid this, it is important to consider whether solving the problem is in line with your organization’s strategic goals.
How does the organization benefit from the solution?
How will developing a solution for the problem benefit the organization? Will it help the organization hit its revenue targets? Will it help the organization capture more market share? Will it help the organisation to streamline existing process and reduce the in-efficiencies in it?
How will you ensure successful implementation of the solution?
Implementation of the solution will also need resources. Do you have the resources – human, financial and other resources – to successfully implement the solution? Developing and implementing some solutions might be a costly affair. Thinking about the resources you require to develop and implement the solution allows for budgetary and other resource-based constraints to be built into the problem statement.
Once you are crystal clear on these basic questions, you can think of framing a problem statement. Let’s look at some best practices in articulating a good problem statement.
3) Let’s Define What Is a Problem Statement?
A problem statement is a concise and clear description of the issues or challenges that must be addressed. The main objective of problem statement is to establish a common ground with your audience about the existence of a problem before moving to a solution.
A compelling problem statement helps garner support from decision makers, team members, or funding bodies for why the problem needs attention and resources in solving it. A well-defined problem statement should:
- Provide a concise explanation of the specific issue
- Explain why problem is significant and requires attention
- Highlight the gap between current state and desired state
4) How to Write a Problem Statement
When writing a problem statement, it’s good to have a structure to follow. It helps to articulate the issue, define its scope, and guide the reader’s understanding of the problem. Below are the elements you would want to include in your problem statement.
- Context of a problem
- Specific issue being addressed
- The consequence of not solving the problem
- Brief background of the solution
Let’s look at a problem statement example for an internal project proposal.
Problem Statement Example from E-commerce industry
A problem of high shopping cart abandonment rate for E-commerce company
Customers are abandoning their shopping carts during the checkout process on our e-commerce platform leading to a significant loss in potential sales and revenue. This issue is impacting our conversion rates and overall customer satisfaction.
Our website traffic data suggests we are experiencing 40% cart abandonment rate, which is significantly higher than the industry average of 20%. This is leading to a loss of revenue, with an estimated $500,000 in lost sales per month.
To address this, it’s important to understand the common reasons for shopping cart abandonment and implement strategies to reduce it.
Step 1 – Providing Context of the Problem
The problem statement should begin with the big picture of the issue and then narrow it down to the specific problem. In the example above, the writer started by providing the context of the problem, which is the high shopping cart abandonment rate during the check-out process. This way, the audience understands the extent of the problem and validates the solutions the presenter may propose.
Step 2. Articulating Specific Issue Being Addressed
In the second paragraph, the writer brings the discussion closer to home by focusing on the impact of revenue due to high cart abandonment during the check-out process.
The concrete figures quantify the problem and make it more tangible. They add a sense of urgency and relevance, capturing the reader’s attention and underscoring the significance of the problem for the company’s benefit.
Step 3. Identifying the Risks of Not Solving the Problem
This part of the problem statement may be the final blow you need to bring the stakeholders on board with you. When they understand the potential negative consequences and risks of not addressing the problem, they are more likely to recognize the urgency of finding a solution and actively participate in the resolution process.
This statement should be explained concisely – preferably in a one-liner. In the example above, the writer briefly mentioned how high cart abandonment rate could erode the company’s revenue.
Step 4. Providing Background to the Solution
Finally, you should include a general approach in solving the problem. The general approach serves as a teaser, prompting further discussions with stakeholders.
In the example, the presenter briefly mentioned “understand the common reasons for shopping cart abandonment” but did not discuss the specific reasons for the problem.
Common Mistakes to Avoid when Writing a Problem Statement
1) Being too Vague or Broad
A vague problem statement defeats the purpose why you are writing it in first place. Vague problem definition lacks insights and often leads to unsuccessful proposals. The broad problem statement, on the other hand, lacks scope and tries to solve multiple problems, diluting the effectiveness of the proposed solution.
You can avoid this mistake by quantifying the problem with concrete figures and focusing on one central issue. A single, specific problem can be more easily measured and evaluated to determine the effectiveness of the solutions.
Bad Problem Statement
The customers cart abandonment rate is high at the time of checkout. We need to lower the rate, improve the customer experience, and increase our revenue.
Improved Problem Statement
Customers are abandoning their shopping carts on our e-commerce platform during the checkout process, resulting in a 40% cart abandonment rate which is significantly higher than the industry average of 20%. This is leading to a loss of revenue with an estimated $500,000 in lost sales per month.
2) Failing to Identify the Root Cause of the Problem
The best approach to resolving any issue begins by analyzing the problem and its underlying causes. When you fail to identify the root cause of the problem in the problem statement, you are likely to propose an inadequate solution that doesn’t address the core issue.
A Fishbone Diagram, also known as an Ishikawa Diagram or Cause-and-Effect Diagram, is a visual tool used to systematically identify and analyze the root causes of a problem. It helps teams brainstorm potential causes of an issue and organize them into categories, making it easier to pinpoint the underlying factors.
Our fictitious problem statement above pinpointed several causes of the high cart abandonment rate, such as:
- Complicated checkout process: A lengthy or confusing process can deter customers.
- Security concerns: Customers may feel uneasy about payment security.
- Lack of preferred payment options: Not offering the payment methods customers prefer.
- Website performance issues: Slow load times or technical glitches.
3) Focusing on Symptoms Instead of the Problem Itself
When your tooth is aching, you would probably take a pain killer to ease the pain, right? But in doing so, you are focusing on symptoms rather than a problem. You need to see the dentist and get a dental treatment properly. This will address the problem.
You could improve the look and feel of the payment page and entice the customer to go ahead and actually pay for the product. But this won’t address the issue of slow web site performance, for example, which is a pressing concern and needs to be addressed as a priority.
Not tackling the underlying problem can result in recurrent issues and an inefficient allocation of resources.
4) Using Biased or Subjective Language
This needs no lengthy explanation. Biased language may not accurately reflect the facts or reality of the problem.
Summary
The problem statement is an indispensable tool in project management. It can be a critical element of a project charter when launching a new initiative, a deciding factor in a project’s progress, or the basis for realigning an existing project to meet its intended goals.
A well-crafted problem statement provides a clear direction for the project and increases the odds of gaining buy-in from stakeholders.
PML would like to extend a huge thank you to Siddharth for sharing his knowledge and wisdom with the PML community! Learn more about him below and reach out to connect!
About the Author
Siddharth was born and bought up in Pune. Pune, is a city in state of Maharashtra and geographically at eastern part of India. Pune is often referred to as the ”Oxford of the East” because of its educational institutions and has historically been a major cultural centre.
Siddharth holds a Mechanical Engineering degree and an MBA in Operations Management. He is also PMP and ACP certified practitioner from Project Management Institute.
Siddharth is passionate about designing, developing, and delivering impactful training programs on various project management topics. Siddharth is a firm believer that an effective facilitator bridges the gap between theory and practice. Drawing from his extensive project management experience, he highlights the relevance of complex concepts through real-life applications. He has successfully conducted numerous open house Microsoft Project Scheduling workshops. Additionally, he has facilitated personal coaching and web-based sessions on various project management topics.
With over 20 years of project management experience, he has worked across various domains, including new product development, high-end technology-driven manufacturing automation, software development for automobile embedded systems, and Oil and Gas projects. In his previous role, Siddharth had successfully implemented a Project Management Office for a $100M project portfolio and established an Enterprise Project Management framework across the organization to streamline project management processes and improve collaboration among project stakeholders. As Head of the PMO, Siddharth played a pivotal role in establishing the Enterprise Risk Management framework, enabling the company to meticulously evaluate risks associated with high-value tenders before making informed go/no-go decisions. Siddharth has managed large projects in fast-paced, complex environments involving cross-functional, multi-site, and multi-vendor teams.
He is skilled in procurement and contract management, project scheduling, and budgeting. Siddharth is proficient in using Microsoft Project for scheduling. By meticulously tracking and monitoring projects with this tool, he has saved the company millions of dollars in liquidated damages. He excels in collaboration, coordination, and multitasking.
Currently Siddharth is working as a Solopreneur. He runs a project management training and consulting firm called pmfornonpm. It stands for Project Management for Non Project Managers. He started this learning platform to help business managers:
- Learn the basics of project management skills to deliver positive results to your organization
- Get acquainted with project management vocabulary so that you will feel confident while talking to other fellow project managers
- Use project management planning tools such as Microsoft Project
- Prepare for global accreditation in project management such as PMP Consult Small and Medium scale Enterprises in Risk Management, Project Schedule development and analysis, Project specific PMO set-up etc.
For training inquiries and project management services, Siddharth can be reached by:
Email: pmfornonpm@gmail.com
Website: pmfornonpm.in
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