How should Product Managers write problem statements?

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 (problem) state and desired (goal) state of a process or product. The first condition of solving a problem is understanding the problem, which can be done by way of a problem statement.

A good problem statement:

• Provides focus and frames the problem
• Inspires your team
• Informs criteria for evaluating competing ideas
• Empowers your team to make independent decisions
• Captures the hearts and minds of people you meet
• Prevents you from creating concepts that are all things to all people
• Should be discreet, not broad

Why is a problem statement important?

A problem statement is important because it examines an issue from multiple angles. It identifies who the problem impacts, what the impacts are, where the problem occurs and why and when it needs to be fixed. This helps organizations determine the extent of an issue.

How to write a problem statement

How to write a problem statement

Put the problem in the context

1. Before you write, you need to have a clear picture of the problem itself. At this stage, you want to discuss the what, where, when and who, regarding the problem.
2. Think about these additional questions to help you frame an impactful problem statement:
   - Is the problem limited to a certain demographic or region?
   - Which people have attempted to solve the issue?
   - What do people already know about the issue?

Explain the relevance of the problem

1. The problem statement should address not only what the problem is but why it’s important to solve. You need to communicate why it matters to the business and the potential dangers if it goes unsolved.
2. To clarify why your problem is significant, address the following questions:
   - Who will feel the consequences of the problem?
   - What is the financial impact of the problem?
   - Does the problem have any relevance to other areas of the business?
   - Does the problem impact the wider society?
   - How will solving the problem increase our understanding of the business?

Backup your claim

1. Quantifiable data ensure people understand the relevance and scope of a problem. Using evidence to back up your problem statement will make people take the issue seriously. Knowing your numbers also boosts your credibility.
2. For example, if a problem has diminished sales in the past few weeks, showing these statistics immediately communicates the extent of the issue.

Propose a solution

1. After doing a thorough investigation into the problem, you would have a solid grasp of how the problem occurred. Thus, you need to propose a practical solution or suggest several approaches to understanding and rectifying the issue at this stage.
2. State your objectives by suggesting well-thought-out plans for combating the issue.

Explain the benefits of your proposed solution

Demonstrate why the solution will work with practical examples of how it will effectively address the problem. Explain how solving the problem will benefit the organization. Focus on the financial benefits of solving the problem and the impact on customer satisfaction.

Problem Statement Template

Problem statements usually follow the same general format, though they may fluctuate in length depending on the complexity of the issue. Here’s a basic template you can follow when writing your problem statement:

• Problem — Using one sentence, define the problem.
• Background — In this section, use evidence to describe and explain the context of the problem.
• Relevance — In this section, describe why the problem matters.
• Objectives — In your conclusion, propose solutions to the problem based on your research and understanding of it.

Or you can use this another template:

1. What’s the real problem?
2. Who are the users facing this problem?
3. How do we know it’s a real problem?
4. What is the value generated by solving this problem?
   - For the business
   - For the target users
5. Why should we solve this problem now?

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