What Is a Problem Statement: What It Is and How to Use It

A problem statement is a short, clear description of an issue that needs to be addressed. It helps teams agree what is happening, why it matters, and what success should look like before jumping to solutions.

It is an everyday business tool that improves decision-making, reduces rework, and makes delivery more focused, whether you are in the public sector, an SME, a charity, or a larger organisation.

What a problem statement is

A problem statement describes the current situation, the impact it is having, the evidence that shows it is real, and the outcome you want to achieve. It should be understandable to someone outside the immediate team.

Why problem statements matter

Most organisations do not lack ideas. They lack alignment.

When the problem is unclear, teams often start with a preferred solution and work backwards. They spend time debating symptoms instead of causes, and scope creeps because everything feels relevant. Progress becomes hard to measure because success was never defined.

A good problem statement gives you a shared reference point. It keeps work grounded in evidence and outcomes, not assumptions.

What a problem statement is not

A problem statement is not a solution in disguise, such as saying you need a new system. It is not a vague ambition like improve engagement, and it is not a list of complaints with no direction. It also does not need to be a long report that no one reads.

If you cannot describe the problem without naming the solution, you are not ready to decide what to do next.

How problem statements can be used in organisations

Use a problem statement whenever you are about to commit time, budget, or attention. This includes writing a business case, starting a project or programme, fixing a recurring operational issue, responding to a performance dip or customer complaints, or planning a service change.

In practice, a problem statement becomes the anchor for your project brief and scope. It supports prioritisation and decision-making, helps stakeholders align early, and makes it easier to define measures of success and report progress.

A simple problem statement structure

You do not need a perfect template. You need a consistent one.

Start with the situation. Describe what is happening right now in plain, factual language.

Then describe the impact. Explain who is affected and how, and what this costs in time, money, risk, customer experience, or staff capacity.

Add the evidence. Use data, feedback, examples, incidents, or trends that show this is real.

Define the desired outcome. Describe what would be different if you addressed the issue. Focus on the change, not the activity.

Set the scope. Be clear about what is in scope and what is out of scope so expectations do not expand by default.

Finally, note the constraints. Capture what you must work within, such as budget, time, policy, procurement, capacity, or dependencies.

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Copy and paste problem statement template

Situation:

Impact:

Evidence:

Desired outcome:

In scope:

Out of scope:

Constraints:

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Example problem statement

Situation: Project handovers between teams are inconsistent, and key information is often missing.

Impact: Delivery slows down, tasks are duplicated, and customers experience delays. Teams spend time chasing updates rather than progressing work.

Evidence: Repeated escalations in the last 6 weeks, missed deadlines, and feedback from team leads that handovers vary by person.

Desired outcome: A consistent handover approach that reduces delays and makes ownership clear.

In scope: A simple handover checklist and agreed ownership points.

Out of scope: A full tool change or major restructure.

Constraints: No new software this quarter and limited capacity for training.

Common mistakes to avoid

The most common mistake is starting with the solution before confirming the problem. Another is using broad language without evidence, which makes it hard to agree priorities. Teams also often miss the out of scope line, which creates expectation creep. Finally, it is easy to confuse activities with outcomes, for example run training instead of handover quality improves.