5 Elements of a Problem Statement

Editor's Note: Take a look at our featured best practice, Structured Problem Solving & Hypothesis Generation (34-slide PowerPoint presentation). This training PPT presentation provides a comprehensive approach to structured problem solving, starting with the identification of whether a problem or opportunity exists. It guides you through pinpointing the exact location of the issue, understanding its root causes, and exploring potential [read more]

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Managing any organization can be described as a constant stream of problems that need to be managed and solved.  However, oftentimes, people like to immediately implement solutions without having spent the time and effort to truly understand and analyze the true nature of the problem at hand. 

Thus, organizations end up spending a lot of time, effort, and money without precisely knowing what the endeavor is going to do for them.

Frameworks and templates can streamline structured problem solving, but C-level execs know cookie-cutter approaches don’t cut it. Customization to the specific organization’s context is critical. Engage with frontline staff who understand the nitty-gritty, gather real-time data, and build a framework that evolves with your insights. Instead of solely relying on past successes, leverage current internal analytics and market trends. This way, your strategy becomes a living, breathing entity rather than a static document gathering dust on a shelf.

The need to distinctly define the most-pressing problem—an organization is facing—that requires solution is a very genuine requirement.  Being able to clearly define the problem can make an organization a leader in the industry since it will be effectively implementing change on a regular basis.

Research over some decades suggests that a person’s mind has a minimum of 2 disparate approaches for attempting Problem Solving.  Which approach takes over is contingent on both the person’s present situation and the surrounding environment.  These 2 approaches to Problem Solving are:

1. Automatic Processing—where humans do not have control over the processing and are even unaware of it happening.
2. Conscious Processing—Portion or function of the brain that a person controls, is represented by Conscious Processing.

These 2 approaches confront problems differently and do so at dissimilar speeds.  A sizable and mounting compendium of research points out that it is beneficial to differentiate between the 2 modes of thinking.

Structured Problem Solving relates to the 2^nd approach i.e., Conscious Processing.  Structured Problem Solving involves creating a logical argument that associates the observed data to root causes and, ultimately, to an answer. 

Forming an efficaciously lucid chain begins with a coherent description of the problem.  A decent Problem Statement should have 5 essential elements:

1. Importance
2. Problem–Solution Gap
3. Quantification
4. Neutrality
5. Scope

Forming a Problem Statement raises the probability of taking advantage of the potencies of Conscious Processing and may also develop the environment for causing and then assessing an “Aha” moment.

Let us look at these elements in a little more detail.

Importance

Importance refers to the Problem Statement’s ability to reference a feature that really matters to an organization and links that feature to a well-defined and distinctive goal.  This is possible only when one is able to tie a straight path from the Problem Statement to the organization’s broader mission and goals.  The trap of concentrating on outlying issues at the outset should be avoided and focus should remain on the important matters.

Problem–Solution Gap

A good Problem Statement should include a coherent expression of the Gap between the present situation and the goal. Research has proven that people are extra focused and struggle more when they have distinct and easily understandable goals in front of them. A good Problem Statement helps create this focus by clearly identifying the Gap that needs filling. This clarity ensures that everyone involved understands the direction and effort required to bridge this gap, fostering a unified approach towards the goal.

Quantification

Key variables—i.e., the goal, the present situation, and the gap—should be Quantifiable in an effective Problem Statement. Quantification of a feature merely denotes that it has a distinct direction—i.e., one knows if more of it is good or bad. It also allows for measurable progress tracking and objective assessment of whether the implemented solutions are effective, providing a clear metric for success.

Neutrality

A proper Problem Statement should maintain Neutrality regarding likely diagnosis or solutions. As little presupposition regarding the cause of a problem should be made as practicably possible, during problem formulation. This neutrality prevents bias and ensures that all potential solutions are considered, allowing for a more comprehensive and unbiased evaluation of the problem.

Scope

The Scope defined in a Problem Statement should be concise enough to be tackled swiftly. However, it should also be broad enough to encompass all relevant aspects of the problem, ensuring a comprehensive approach. Properly defining the scope helps in allocating resources efficiently and setting realistic timelines for resolution.

Want to dig deeper into these elements?  You can download an editable PowerPoint on 5 Elements of a Problem Statement here on the Flevy documents marketplace.

Some closing thoughts: are you encouraging your team to challenge assumptions and break norms? Creating a culture where every level of your organization feels empowered to question and innovate can transform problem-solving. This isn’t about endless brainstorming sessions. It’s about structured, goal-oriented debates that surface unconventional solutions. Implementing this approach might seem chaotic at first, but it’s the secret sauce to uncovering those “Aha” moments that drive real change. What’s your organization doing to foster this dynamic environment?

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