Blog  Productivity

3 Problem
statement
examples and
steps to write
your own
By Madeline Miles
Updated: June 12, 2024 - 23 MIN READ

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What is a problem statement?

When to use a problem

statement

How to identify a problem

statement

What are problem statements

used for?

3 examples of problem
statements

What are the 5 components of

a problem statement?

How do you write a problem

statement?

What to avoid when writing a

problem statement

We’ve all encountered problems on the

job. After all, that’s what a lot of work is
about. Solving meaningful problems to
help improve something.

Developing a problem statement that

provides a brief description of an issue
you want to solve is an important early
step in problem-solving.

It sounds deceptively simple. But creating

an effective problem statement isn’t that
easy, even for a genius like Albert
Einstein. Given one hour to work on a
problem, he’d spend 55 minutes thinking
about the problem and five minutes
finding solutions. (Or so the story goes.)

Einstein was probably exaggerating to

make a point. But considering his success
in solving complex problems, we think he
was on to something.

As humans, we’re wired to jump past the

problem and go directly to the solution
stage. In emergencies, this behavior can
be lifesaving, as in leaping out of the way
of a speeding car. But when dealing with
longer-range issues in the workplace, this
can lead to bad decisions or half-baked
solutions.

That’s where problem statements come in

handy. They help to meaningfully outline
objectives to reach effective solutions.
Knowing how to develop a great problem
statement is also a valuable tool for
honing your management skills.

But what exactly is a problem statement,

when should you use one, and how do you
go about writing one? In this article, we'll
answer those questions and give you
some tips for writing effective problem
statements. Then you'll be ready to take
on more challenges large and small.

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What is a problem
statement?
First, let’s start by defining a problem
statement.

What is a problem
statement?
A problem statement is a short, clear
explanation of an issue or challenge that
sums up what you want to change. It helps
you, team members, and other
stakeholders to focus on the problem,
why it’s important, and who it impacts.

A good problem statement should create

awareness and stimulate creative
thinking. It should not identify a solution
or create a bias toward a specific strategy.

Taking time to work on a problem

statement is a great way to short-circuit
the tendency to rush to solutions. It helps
to make sure you’re focusing on the right
problem and have a well-informed
understanding of the root causes. The
process can also help you take a more
proactive than reactive approach to
problem-solving. This can help position
you and your team to avoid getting stuck
in constant fire-fighting mode. That way,
you can take advantage of more growth
opportunities.

When to use a problem

statement
The best time to create a problem
statement is before you start thinking of
solutions. If you catch yourself or your
team rushing to the solution stage when
you’re first discussing a problem, hit the
brakes. Go back and work on the
statement of the problem to make sure
everyone understands and agrees on
what the real problem is.

Here are some common situations where

writing problem statements might come
in handy:

Writing an executive summary for a

project proposal or research project

Collaborating on a cross-functional
project with several team members

Defining the customer issue that a

proposed product or service aims to
solve

Using design thinking to improve user

experience

Tackling a problem that previous

actions failed to solve

How to identify a
problem statement
Like the unseen body of an iceberg, the
root cause of a specific problem isn’t
always obvious. So when developing a
problem statement, how do you go about
identifying the true, underlying problem?

These two steps will help you uncover the

root cause of a problem:

1. Collect information from the research

and previous experience with the
problem

2. Talk to multiple stakeholders who are

impacted by the problem

People often perceive problems

differently. Interviewing stakeholders will
help you understand the problem from
diverse points of view. It can also help you
develop some case studies to illustrate
the problem.

Combining these insights with research

data will help you identify root causes
more accurately. In turn, this methodology
will help you craft a problem statement
that will lead to more viable solutions.

What are problem

statements used for?
You can use problem statements for a
variety of purposes. For an organization, it
might be solving customer and employee
issues. For the government, it could be
improving public health. For individuals, it
can mean enhancing their own personal
well-being. Generally, problem
statements can be used to:

Identify opportunities for

improvement

Focus on the right problems or issues

to launch more successful initiatives –
a common challenge in leadership

Help you communicate a problem to

others who need to be involved in
finding a solution

Serve as the basis for developing an

action plan or goals that need to be
accomplished to help solve the
problem

Stimulate thinking outside the box and

other types of creative brainstorming
techniques

3 examples of problem
statements
When you want to be sure you understand
a concept or tool, it helps to see an
example. There can also be some
differences in opinion about what a
problem statement should look like. For
instance, some frameworks include a
proposed solution as part of the problem
statement. But if the goal is to stimulate
fresh ideas, it’s better not to suggest a
solution within the problem statement.

In our experience, an effective problem

statement is brief, preferably one
sentence. It’s also specific and descriptive
without being prescriptive.

Here are three problem statement

examples. While these examples
represent three types of problems or
goals, keep in mind that there can be
many other types of problem
statements.

Example Problem
Statement 1: The Status
Quo Problem Statement
Example:

The average customer service on-hold

time for Example company exceeds five
minutes during both its busy and slow
seasons.

This can be used to describe a current

pain point within an organization that may
need to be addressed. Note that the
statement specifies that the issue occurs
during the company’s slow time as well as
the busy season. This is helpful in
performing the root cause analysis and
determining how this problem can be
solved.

Problem:

The average customer service on-hold

time for Example company exceeds five
minutes during both its busy and slow
seasons. The company is currently
understaffed and customer service
representatives are overwhelmed.

Background:

Example company is facing a significant

challenge in managing their customer
service on-hold times. In the past, the
company had been known for its efficient
and timely customer service, but due to a
combination of factors, including
understaffing and increased customer
demand, the on-hold times have
exceeded five minutes consistently. This
has resulted in frustration and
dissatisfaction among customers,
negatively impacting the company's
reputation and customer loyalty.

Relevance:

Reducing the on-hold times for customer

service callers is crucial for Example
company. Prolonged waiting times have a
detrimental effect on customer
satisfaction and loyalty, leading to
potential customer churn and loss of
revenue. Additionally, the company's
declining reputation in terms of customer
service can have a lasting impact on its
competitive position in the market.
Addressing this problem is of utmost
importance to improve customer
experience and maintain a positive brand
image.

Objectives:

The primary objective of this project is to

reduce the on-hold times for customer
service callers at Example company. The
specific objectives include:

Analyzing the current customer

service workflow and identifying
bottlenecks contributing to increased
on-hold times.

Assessing the staffing levels and

resource allocation to determine the
extent of understaffing and its impact
on customer service.

Developing strategies and

implementing measures to optimize
the customer service workflow and
reduce on-hold times.

Monitoring and evaluating the

effectiveness of the implemented
measures through key performance
indicators (KPIs) such as average on-
hold time, customer satisfaction
ratings, and customer feedback.

Establishing a sustainable approach to

maintain reduced on-hold times,
taking into account both busy and
slow seasons, through proper
resource planning, training, and
process improvements.

Example Problem
Statement 2: The
Destination Problem
Statement
Example:

Leaders at Example company want to

increase net revenue for its premium
product line of widgets by 5% for the next
fiscal year.

This approach can be used to describe

where an organization wants to be in the
future. This type of problem statement is
useful for launching initiatives to help an
organization achieve its desired state.

Like creating SMART goals, you want to

be as specific as possible. Note that the
statement specifies “net revenue” instead
of “gross revenue." This will help keep
options open for potential actions. It also
makes it clear that merely increasing
sales is not an acceptable solution if
higher marketing costs offset the net
gains.

Problem:

Leaders at Example company aim to

increase net revenue for its premium
product line of widgets by 5% for the next
fiscal year. However, the company
currently lacks the necessary teams to
tackle this objective effectively. To
achieve this growth target, the company
needs to expand its marketing and PR
teams, as well as its product development
teams, to prepare for scaling.

Background:

Example company faces the challenge of

generating a 5% increase in net revenue
for its premium product line of widgets in
the upcoming fiscal year. Currently, the
company lacks the required workforce to
drive this growth. Without adequate staff
in the marketing, PR, and product
development departments, the
company's ability to effectively promote,
position, and innovate its premium
product line will be hindered. To achieve
this kind of growth, it is essential that
Example company expands teams,
enhances capabilities, and strategically
taps into the existing pool of loyal
customers.

Relevance:

Increasing net revenue for the premium

product line is crucial for Example
company's overall business success.
Failure to achieve the targeted growth
rate can lead to missed revenue
opportunities and stagnation in the
market. By expanding the marketing and
PR teams, Example company can
strengthen its brand presence, effectively
communicate the value proposition of its
premium product line, and attract new
customers.

Additionally, expanding the product

development teams will enable the
company to introduce new features and
innovations, further enticing existing and
potential customers. Therefore,
addressing the workforce shortage and
investing in the necessary resources are
vital for achieving the revenue growth
objective.

Objectives:

The primary objective of this project is to

increase net revenue for Example
company's premium product line of
widgets by 5% in the next fiscal year. The
specific objectives include:

Assessing the current workforce and

identifying the gaps in the marketing,
PR, and product development teams.

Expanding the marketing and PR

teams by hiring skilled professionals
who can effectively promote the
premium product line and engage with
the target audience.

Strengthening the product

development teams by recruiting
qualified individuals who can drive
innovation, enhance product features,
and meet customer demands.

Developing a comprehensive
marketing and PR strategy to
effectively communicate the value
proposition of the premium product
line and attract new customers.

Leveraging the existing base of loyal

customers to increase repeat
purchases, referrals, and brand
advocacy.

Allocating sufficient resources, both

time and manpower, to support the
expansion and scaling efforts required
to achieve the ambitious revenue
growth target.

Monitoring and analyzing key

performance indicators (KPIs) such as
net revenue, customer acquisition,
customer retention, and customer
satisfaction to measure the success of
the growth initiatives.

Establishing a sustainable plan to

maintain the increased revenue
growth beyond the next fiscal year by
implementing strategies for
continuous improvement and
adaptation to market dynamics.

Example Problem
Statement 3 The
Stakeholder Problem
Statement
Example:

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