How to Write a Problem Statement

To tackle complex issues effectively, you want to craft well-defined problem statements. 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.

🔍 What is a Problem Statement?

A problem statement describes an issue or challenge that needs to be addressed.

In Project Management, Problem Statement gains stakeholder support, keeps projects organized, and pinpoints improvement opportunities. A problem statement focuses team members and stakeholders on a particular area of concern, pinpoints opportunities for improvement, and raises questions that demand a thorough understanding and investigative action.

🏗️ Key Components of an Effective Problem Statement

1. The Current State describes the present situation with measurable indicators, such as quality, cost, time, safety, customer satisfaction, or employee engagement.

2. Future State contrasts the current state with the envisioned future, defined by measurable targets derived from customer needs, industry standards, or strategic objectives.

3. Scope and Impact: Define who’s affected and the consequences of the problem.

4. Context and Relevance: Explain why the problem matters.

Problem Statement shouldn’t presuppose a cause or suggest solutions as they require further analysis.

Problem Statement should be concise and answer the Five Ws (Who, What, Where, When, Why)

🌈 Examples from Different Fields

1. Business: “The customer service department is experiencing a 20% increase in response time, leading to lower customer satisfaction scores. This issue impacts customer retention and brand loyalty. This project aims to optimize processes of the customer service department to streamline the process and reduce response time.”

2. IT: “The finance department’s manual auditing processes are causing significant delays and errors, impacting the accuracy and timeliness of financial reporting. This project aims to develop an automated auditing system to streamline the process, reduce errors, and improve overall efficiency in the finance department.”

3. Banking: “Despite the rapid adoption of digital banking platforms, our bank faces significant challenges in enhancing customer experience, particularly in onboarding, digital interaction, and account opening. This project aims to identify the key gaps in our digital banking customer experience and propose innovative solutions to bridge these gaps, ultimately improving customer satisfaction and retention.”

A well-crafted problem statement is your key to unlocking effective solutions. It provides clarity, focus, and direction, ensuring your efforts are targeted and impactful. So next time you face a challenge, start by writing a problem statement!