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How to Write a Problem Statement   

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Discover how to craft an accurate problem statement that will precisely focus your team’s efforts in delivering what your end users’ needs  

One thing that I have discovered about those individuals that are attracted to the field of Product Management is that they are incredibly action-oriented – they want to do, act, create, build and, ultimately, solve. In general, this is an awesome trait and one that I have celebrated when hiring Product Managers. There is one slight dilemma here, however. When faced with a challenge or issue, these action-oriented Product Managers tend to want to jump right into solutioning before they fully understand the problem. This can be a difficulty when iterating or creating products to respond to customer needs and demands, as you miss or misalign potential solutions if the problem space is not fully defined. 

So, before you get into the solutioning phase of a product challenge, I strongly recommend fully understanding the problem space and identify the root cause of the problem. This can be summarized and shared with those who can help us ideate solutions via a Problem Statement. A clear, concise, and well-defined Problem Statement sets the stage for ideation, design, development, and marketing. It ensures that everyone involved is working towards a unified objective and helps avoid the common pitfall of solving the wrong problem or addressing symptoms rather than root causes. 

What is a problem statement?  

A Problem Statement is a concise description of an issue to be addressed or a condition to be improved upon. It identifies the gap between the current state (the problem) and the desired state (the goal) of a process or product. This statement provides a clear explanation of the issue that needs to be addressed and is used to articulate the problem and create a sense of urgency to address it. 

A compelling problem statement typically includes the following elements: 

  • Description of the Problem: This should be a clear and specific description of the issue that needs to be addressed. Focus on the user or customer and get specific on the specific challenges they face. 
  • Impact of the Problem: What is the effect on the customer, business or stakeholder from this problem? Quantify the impact if possible. 
  • Goals and Objectives: What would success look like for the customer, business or stakeholder from solving this problem and how would they measure that success. Again, try to be specific here. 
  • Constraints and Assumptions: Note any limitations that might be faced or need to be addressed in solving the problem for the customer. These could be technological, environmental, social, legal or even political. 

To create a compelling Problem Statement, work through the following process.  

  1. Identify and Understand the Problem 
    Start by collecting some data about the problem. Speak with customers, conduct surveys, and analyze market trends. Identify the trends through internal data but reach out to customers that are experiencing the problem to better understand the context and get a clear viewpoint on what the customer is trying to accomplish and what might be getting in the way. 
  1. Define the Scope
    Bet careful of biting off too much as you will likely not succeed. Clearly define the boundaries of the problem you are working to resolve. Specificity is key here. Rather than saying the problem is “The usability of our mobile app is poor” focus on a specific problem or set of problems that your customer is having with the app. Maybe, “Users of our mobile app cannot locate the status of their recent orders”. 
  1. Analyze the Impact 
    Get a clear understanding of the impact of the problem on your customer and, potentially, your business. This will enable you to properly prioritize it effectively. For instance, what is the impact on the customer and their satisfaction or repeat business from not being able to understand the status of their recent orders. Getting to the impact on your customers and your business will help you to justify resources to help solve it. 
  1. Write the Problem Statement 
    Combine your understanding, scope, and impact analysis into a concise statement. If you have done your discovery properly, you can almost view this as a fill in the blank process. 

    I am a [define the target customer or user that is experiencing the problem
    Trying to [define the task that the customer or user is trying to accomplish
    But [what is the specific problem the user is having in completing that task
    Because [what is the root cause of that problem
    Which causes [what is the impact on the customer or the business from this challenge

Here would be a Problem Statement for the mobile app challenge noted above: 

I am an e-commerce shopper using the mobile app 

Trying to better understand the status of my order and when I can anticipate receiving it 

But I cannot find the specific order that I recently completed 

Because online/e-commerce orders are comingled with in-store orders and there is no way to segment them in the application 

Which causes me to always think my orders are late, detract from my satisfaction with the whole fulfillment process and reduce my likelihood or reordering through the app 

  1. Validate and Refine 
    Don’t keep the Problem Statement to yourself – socialize it with others in the organization and potential partners to get feedback and refine it. Don’t go overboard here and let perfect be the enemy of good, but make sure that it resonates and accurately reflects the problem. 

Here are some examples of other problem statements that meet the criteria noted above. 

  • For a Ride-Sharing App: “I am a user of a ride sharing app in a suburban area trying to get to the city, but I am experiencing longer wait times than I do when requesting a ride in an urban area because there are not enough drivers available, so we are seeing a 30% decrease in ride bookings in these regions.” 
  • For a Project Management Tool: “I am a project manager trying to track team progress, but I am finding real time results of progress missing because I do not get updates of work in progress. As a result, I am seeing delays in project delivery and a 20% decrease in client satisfaction.” 
  • For an Online Learning Platform: “Foreign language learners are not successfully gaining fluency with our classes as they tire with the monotony of the exercises that lack interactivity. We are seeing a resulting 40% drop in course completion rates and 30% decline in renewal of subscriptions.” 

A well-defined problem statement is a necessary step in creating products that not only meet but exceed users’ expectations. So, while it might take some time to gather the information needed and craft insightful product statements, they are well worth the investment to help drive more valuable solutions for your customers and users. 

Getting a problem correct is crucial for focusing your team’s attention and delivering a product that successfully meets your user’s needs. With years of experience in all aspects of product management we’re written our fair share of problem statements, so get in touch and see how we can help you craft yours. 

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Improve My Team
Kenny Kranseler Principal Product Management Consultant & Product Management trainer
ABOUT THE AUTHOR
Principal Consultant and Trainer
July 22, 2024