Better Problem Statement 1: Inventory levels at the West Metro inventory storage process in Scottsdale are consuming space, taking up asset management time, and creating cash flow issues. Reality Why? But what exactly is a problem statement, when should you use one, and how do you go about writing one? Problem statement examples in business Problem statements are used in all sorts of business projects, including new business launches, revenue optimization initiatives, competitor analysis, and more. You can use problem statements for a variety of purposes. Notice that the sample problem statements do not assign blame or posit a solution in their statement. For instance, some frameworks include a proposed solution as part of the problem statement. Why: Why is this important or worth solving? Inventory levels are averaging 31.2 days, with a high of 45 days. Lack of focus and distraction are a persistent problem. Interviewing stakeholders will help you understand the problem from diverse points of view. It also makes it clear that merely increasing sales is not an acceptable solution if higher marketing costs offset the net gains. Weve all encountered problems on the job. He is a leading speaker and presenter on business and technology trends, and is co-author of Six Sigma Workbook for Dummies, Process Intelligence for Dummies, BPM Basics for Dummies and The Intelligent Guide to Enterprise BPM. It's often used to attain approval from management to carry out a certain project. When solving any sort of problem, theres likely a slew of questions that might arise for you. Plus, discover how to use it to transform your organization and check out 4 examples. Dale Jakes is a writer for TechnologyAdvice.com, Project-Management.com, and ITBusinessEdge.com. Struggling with organizational performance? Does the statement stimulate brainstorming and discussion? Problem statements do not have to follow a specific formula. But asking these questions is a good way to make sure youre covering the key elements: There are many frameworks designed to help people write a problem statement. Go back and work on the statement of the problem to make sure everyone understands and agrees on what the real problem is. In developing a problem statement, it helps to think like a journalist by focusing on the five Ws: who, what, when, where, and why or how. Once we landed on a strong problem statement, then we had to align the client with the problem statement. Bruce Williams is Vice President of Pegasystems, the world leader in business process management. It is essentially the beginning of a new project. He is an operations executive and internationally recognized Lean Six Sigma thought leader and practitioner. Einstein was probably exaggerating to make a point. If you need to increase sales by 10%, a good problem statement is, "Within the next 12 months, what are the most effective options for the team to increase sales by 10%?" Force the prioritization Often, the most effective problem statements force the prioritization of issues and opportunities. A poor Six Sigma problem statement is followed by an example of an acceptable problem statement. A resource is something that can help you with managing projects. EXPLORE THE TOP 100 STRATEGIC LEADERSHIP COMPETENCIES, CLICK HERE FOR TONS OF FREE STRATEGY & LEADERSHIP TEMPLATES. Great! It is recommended that these solutions are noted and saved until a problem statement has been successfully formulated and presented to the relevant parties. Six Sigma Problem: At the New Jersey factory, 45% of the employees report to work within 15 minutes after the time that they were supposed to report to during the beginning of the shift causing a fall in daily productivity by 5%. Bruce Williams is Vice President of Pegasystems, the world leader in business process management. When problem statements are well written, people readily grasp and understand what youre trying to accomplish. A well-framed problem will help you avoid cognitive bias and open avenues for discussion. Use industry-relevant terminology that those in your industry will understand. From economic uncertainty and laying off employees to hiring freezes, change is constant. A common example of this is diagnosing a car that will not start. Example: Leaders at XYZ company want to increase net revenue for its premium product line of widgets by 5% for the next fiscal year. Combining these insights with research data will help you identify root causes more accurately. First up: a statement with too little information:\n","blurb":"","authors":[{"authorId":9791,"name":"Craig Gygi","slug":"craig-gygi","description":"Poor Problem Statement 1A: Inventory levels are too high and must be reduced.\nHow many times have you heard a problem statement like this one before? Why? It sets the criteria for dealing with a problem and gives them a framework to execute it to a high standard. Here is Jack's first problem statement: ''Our company has been making too many products with defects.'' This statement would be considered a poor problem. Keep asking why (and check in on the progress). Transform your enterprise with the scalable mindsets, skills, & behavior change that drive performance. Achieving this level of performance would increase profits by $395,000 per year.
Craig Gygi is Executive VP of Operations at MasterControl, a leading company providing software and services for best practices in automating and connecting every stage of quality/regulatory compliance, through the entire product life cycle. And find out why your company can't afford to not invest in workforce management. Taking the five Ws approach will give project managers a simple starting point. Neil DeCarlo was President of DeCarlo Communications. By scraping the surface of a problem, youre not going to effectively solve it. Referring to a proven business project proposal template or example helps you craft a winning proposal because different types of projects and circumstances warrant different types of proposals. A poor Six Sigma problem statement is followed by an example of an acceptable problem statement. A problem well stated is a problem half solved., Charles Kettering, Early 1900s American Inventor. . 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