What is a problem statement?

A problem statement is a statement of a current issue or problem that requires

timely action to improve the situation. This statement concisely explains the
barrier the current problem places between a functional process and/or product
and the current (problematic) state of affairs. This statement is completely
objective, focusing only on the facts of the problem and leaving out any subjective
opinions. To make this easier, it's recommended that you ask who, what, when,
where and why to create the structure for your problem statement. This will also
make it easier to create and read, and makes the problem at hand more
comprehensible and therefore solvable. The problem statement, in addition to
defining a pressing issue, is a lead-in to a proposal of a timely, effective solution.

What are the features of a problem statement?

There are three main features or elements of a problem statement. They are:
1. The problem: Details of the problem you are presenting and why
it’s a problem that should be solved.
2. The proposed solution: Details of your proposed solution.
3. Why the solution fixes the problem and how it will be
implemented: Details of why your solution fixes the problem and
how you will implement the solution

When to use a problem statement

Problem statements are important to define and understand a problem and
develop possible solutions. These statements also provide important information
that is crucial in decision-making in relation to these projects or processes.
Here is when you should use a problem statement:
To clarify expected outcomes
The problem statement not only identifies the problem and proposed solution, it
also clarifies the expected outcome. Establishing what the desired solution would
look like helps provide an overarching idea about the project. The proposed
solution and scope and goals of the solution are made clear through this
statement.
How to write a problem statement
A problem statement is a tool used to gain support and approval of the project
from management and stakeholders. As such, it must be accurate and clearly
written. There are a few key elements to keep in mind when crafting a problem
statement that can have a positive impact on the outcome of the project.
1. Describe how things should work.
2. Explain the problem and state why it matters.
3. Explain your problem's financial costs.
4. Back up your claims.
5. Propose a solution.
6. Explain the benefits of your proposed solution(s).
7. Conclude by summarizing the problem and solution.

5. Propose a solution
The problem statement should describe your proposed solution(s) to the problem.
At this point, you won't be focused on finding a single solution, but you should
have a solid grasp on the causes of the problem and be prepared to propose
practical approaches to understanding and remedying it. State your objectives by
suggesting well-thought-out plans for attacking the problem.

6. Explain the benefits of your proposed solution(s)

Now, you've described an ideal scenario in which the problem doesn't exist. You've
pointed out the problem, explained the ramifications of choosing not to fix it
(using dollars and solid data) and proposed some realistic approaches to finding a
solution. Now is a very good time to demonstrate why this solution will work, again
focusing on efficiency and the financial impact of your solution. Address what
expenses the solution will decrease, how this solution will free up revenue streams
and what intangible benefits, such as increased client satisfaction, your solution
will bring. This should all fit into a single short paragraph.
7. Conclude by summarizing the problem and solution
Now you'll move on to your conclusion. This should consist of the problem, why it
needs to be fixed and a summarized argument of why your solution is the best
answer to the problem.
Following this format will help all parties who read it to understand the problem
and be open to considering the best solution.