I have observed in my years of project delivery, stakeholders are generally quick to jump into solution mode before thinking through the business problems in detail. The risk of jumping too quickly into solution mode is often solutions selected isn't fully fit for purpose leading to disappointments.

The benefits of writing a strong problem statement are

• It is a great communication tool to help senior managers and the board to understand the magnitude of the problem
• A tool to secure funding to assess the feasibility of the project
• It helps bring people on the same page
• It challenges people to consider whether is it worthwhile embarking on a major project.

In this article, I will provide you with a simple framework for writing a strong problem statement,

I leant this skill when I attended a LEAN course. The very wise trainer phrased it in a question format which analysts can use to guide their thinking "Whats wrong with what, so what, by how much..."

1. Whats wrong with what : The first part of the question is defining the problem. To define the problem, it helps asking Why questions to really to understand problem causes and effects.
2. So what : If the problem is left unresolved, what will be the impact or the consequences to the users, stakeholder group, department or the organisation. How will it impact external stakeholders such as client, regulatory authority, user groups and others.
3. By how much : The third part of the the problem is defining the measures / KPIs surrounding the problem.

Example of a well defined problem statement using the above format.

The CRM system does not have the capability to remind clients to turn up for their health check up appointments ("Whats wrong with what"). As a result of this, some of our clients do not show up for the appointments ("so what").

• 20% of no show clients in the past financial year resulting in an estimated loss of $450,000 per year ("by how much")
• 10% administration effort to remind clients to turn up for urgent appointments. This takes up 0.5 FTE per year.