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. Maybe; maybe not. This can help position you and your team to avoid getting stuck in constant fire-fighting mode. They help to meaningfully outline objectives to reach effective solutions. Heres another example of a problem statement with insufficient information, along with a rewritten Six Sigma alternative: This statement has so little information that readers may not be entirely clear on whether a significant problem even exists. This is helpful in performing the root cause analysis and determining how this problem can be solved. Following are examples highlighting the depth and quantification of a Six Sigma project definition. Lean on your growth mindset to keep asking why and check in on the progress. In our experience, an effective problem statement is brief, preferably one sentence. Weve all encountered problems on the job. This food waste costs the shop at least an hour of lost production time in the mornings (what). Maybe; maybe not. If you have embarked on a proposed solution, its also important to understand that solutions are malleable. Other problems may be giving you worse headaches than this one. The problem statement above, in a different font, tells you a lot of things. Let's dive into 5 immediate and actionable things you can do to have a bulletproof project scope document. A resource is something that can help you with managing projects. First, it significantly clarifies the current situation by specifically identifying the problem and its severity, location, and financial impact. Whenever possible, get out in the field and talk directly with stakeholders impacted by the problem. Once a thorough and honest investigation into the pain points of a project has been completed, it is time to begin giving form to a previously formless blockage. The purpose of the problem statement is to identify the issue that is a concern and focus it in a way that allows it to be studied in a systematic way. Bruce Williams is Vice President of Pegasystems, the world leader in business process management. Transform your business, starting with your sales leaders. This delay is adding costs of $145,000 per month in overtime, contractor labor, and rework costs.\n
And one more:
\nPoor Problem Statement 3: Our hospital has a problem with the number of insurance claim forms submitted with errors to the insurance company.\n
This statement has so little information that readers may not be entirely clear on whether a significant problem even exists. Project approval is probably one of the most exciting parts of project management, and a project proposal sets your project up for success. Given one hour to work on a problem, hed spend 55 minutes thinking about the problem and five minutes finding solutions. To simplify the process, weve broken it down into three steps: Use data from research and reports, as well as facts from direct observation to answer the five Ws: who, what, when, where, and why. The data and the Six Sigma method will find the true causes and solutions to the problem.
\nRemoving bias from the problem statement is one of the ways Six Sigma prevents organizations and individuals from using gut feelings and intuition when trying to solve problems. Great! Neil DeCarlo was President of DeCarlo Communications. First, it significantly clarifies the current situation by specifically identifying the pr","noIndex":0,"noFollow":0},"content":"
The problem statement serves several purposes in a Six Sigma project. A problem statement is a brief statement of a gap to be closed, an objective to be achieved, or an obstacle to be overcome during project development. : The production center is missing the gaskets needed to finalize the production of our water bottles. Yes, having high inventory levels is a problem, but a problem statement containing so little information significantly reduces your ability to take specific action, enlist support, and obtain improvement. 168-PAGE COMPENDIUM OF STRATEGY FRAMEWORKS & TEMPLATES 100-PAGE SALES PLAN PRESENTATION 186-PAGE HR & ORG STRATEGY PRESENTATION114-PAGE MARKET & COMPETITIVE ANALYSIS PRESENTATION18-PAGE BUSINESS MODEL TEMPLATE. For individuals, it can mean enhancing their own personal well-being. Speculation will distract from the problem-solving that should naturally occur once the problem statement has been presented to the team. Trello vs monday.com Comparison: Which is Better. First, lets start by defining a problem statement. Nobody thinks that having claim forms with errors is good. You can either discuss each one or have the group pick the top 3 and then discuss them. But problem statement examples in business are targets to solve specific business needs like increasing sales targets, establishing businesses online or reducing employee . Why: Why is this important or worth solving? Asking why until youre satisfied that youve uncovered the root cause of the problem will help you avoid ineffective band-aid solutions. Note the statement makes it clear that the issue has been present in multiple surveys and it's significantly worse than the previous year. He is an operations executive and internationally recognized Lean Six Sigma thought leader and practitioner. But creating an effective problem statement isnt that easy, even for a genius like Albert Einstein. Maybe; maybe not. Could faulty equipment be the culprit? From economic uncertainty and laying off employees to hiring freezes, change is constant. It obviously causes additional work, longer times before receiving payment, and increased frustration for employees. Nobody thinks that having claim forms with errors is good. FR. Does the statement describe a symptom instead of the problem? Using the most objective lens possible to create a useful and actionable problem statement will not only prevent any targeted interpersonal grief but will also illuminate the road ahead and prepare fertile ground for problem-solving. Struggling with organizational performance? Bruce Williams is Vice President of Pegasystems, the world leader in business process management. Project-Management.com may receive a commission from merchants for referrals from this website. It helps to make sure youre focusing on the right problem and have a well-informed understanding of the root causes. Get the major stakeholders in a room for a few hours and start the process by having everyone write down what they think the problem is on index cards. Innovative research featured in peer-reviewed journals, press, and more. Billings could increase by $3.5 million per month, rework cost could be reduced by 50 percent, and an additional 1.3 percent of revenue could be recovered if errors were occurring less than 5 percent of the time. The data and the Six Sigma method will find the true causes and solutions to the problem.
\nRemoving bias from the problem statement is one of the ways Six Sigma prevents organizations and individuals from using gut feelings and intuition when trying to solve problems. These two steps will help you uncover the root cause of a problem: People often perceive problems differently. The Conclusion Trap: Four Steps to Better Decisions, 3. 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. Before we talk about this common challenge, we need to define what a 'resource' really is. 1. Lead with a strong statement and a powerful . He is an operations executive and internationally recognized Lean Six Sigma thought leader and practitioner. Solutions can change and adapt as external factors change, too. Writing the problem statement to the standards of Six Sigma provides the level of information needed to make an informed decision: 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. The average time to fill a request is 155 days in the human resources employee recruitment process over the past 15 months. But what exactly is a problem statement, when should you use one, and how do you go about writing one? This can be used to describe a current pain point within an organization that may need to be addressed. Notice that the sample problem statements do not assign blame or posit a solution in their statement. It sets the criteria for dealing with a problem and gives them a framework to execute it to a high standard. 3100 E 5th Street, Suite 350 Austin, TX 78702, English | Looking for a career in Project Management? The process can also help you take a more proactive than reactive approach to problem-solving. A problem statement is not the place to hash out personal vendettas, even if the problem in question is related directly to interpersonal conflict. Corporate research analysts include problem statements in their proposals for beginning a new research project. The five Ws do not have to be the guidepost a project manager uses to understand the contours of a problem that has presented itself, but they are the easiest to remember. First up: a statement with too little information:
\nPoor Problem Statement 1A: Inventory levels are too high and must be reduced.\n
How many times have you heard a problem statement like this one before? Let's apply this to an example. Dale Jakes is a writer for TechnologyAdvice.com, Project-Management.com, and ITBusinessEdge.com. This daily target was set last quarter when the shops sales were higher (when). Define the business need and the expected outcome of the project. A project manager is first and foremost a team leader. A solid problem statement will fully examine a problem from as many angles as possible to fully interpret any blockers or shortcomings that stand in the way of successfully completing the project. Engineering problems are no exception. 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. Is the whole hospital having the problem, or is it confined to a particular group? Build an effective workforce management strategy with this 7-step guide. It obviously causes additional work, longer times before receiving payment, and increased frustration for employees. When problem statements are well written, people readily grasp and understand what youre trying to accomplish.
\nWrite the problem statement with the audience in mind. . Never attempt to solve the problem or steer the solution at this stage. Is the whole hospital having the problem, or is it confined to a particular group? Be clear and succinct. Forty-five percent of the claim forms have errors, with an average of 2.3 defects per form.\n
This problem has existed since claims processing was moved to Kansas City in March 2012. What: What is the current state, desired state, or unmet need? The first step in examining a problem is understanding what exactly is subject to problematic circumstances. If youre going to recruit support and resources to solve your problem, others have to understand the context and the significance in order to support you. This can be used to describe a current pain point within an organization that may need to be addressed. It will also often present more problems in the future. In this article, we'll answer those questions and give you some tips for writing effective problem statements. 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. Bruce Williams is Vice President of Pegasystems, the world leader in business process management. Neil DeCarlo was President of DeCarlo Communications. The Five Whys encourage critical thinking with the minimum amount of rhetorical tools at hand. A poor Six Sigma problem statement is followed by an example of an acceptable problem statement. It should not identify a solution or create a bias toward a specific strategy. By scraping the surface of a problem, youre not going to effectively solve it. There can also be some differences in opinion about what a problem statement should look like. Keep in mind that you probably have to both convince management to provide resources to solve the problem and enlist team members to assist you; you dont want to spend your precious time explaining over and over what youre trying to accomplish.\n\nA problem statement should be concise and include the following:
\n\n
\n- \n
A brief description of the problem and the metric used to describe the problem
\n- \n
Where the problem is occurring by process name and location
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The time frame over which the problem has been occurring
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The size or magnitude of the problem
\nYou must be careful to avoid under-writing a problem statement. The ability to pick out the source of the problem will produce more effective problem statements. The problem statement must not include any indication or speculation about the cause of the problem or what actions will be taken to solve the problem. Forty-five percent of the claim forms have errors, with an average of 2.3 defects per form.
This problem has existed since claims processing was moved to Kansas City in March 2012. It also serves as a great communication tool, helping to get buy-in and support from others. It's often used to attain approval from management to carry out a certain project. A natural tendency is to write a problem statement too simplistically because youre already familiar with the problem. There are various situations in which you might have to write a problem statement. Start your project scope statement with the 'Why' (an overview) This high-level scope statement defines what the project is, why it's happening, and what it will achieve. Once the who has been established, the what will often naturally present itself. Why is it important to solve this problem? 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. Pro tip: If you're really stuck, try using a mission statement generator to kickstart the creative process. Does the statement suggest the problem is that you dont have enough time, money, or people? BetterUp can help. Deutsch | Collect the index cards and post them on a whiteboard. Find a way to pose the problem that will lead to more creative solutions. If youre going to recruit support and resources to solve your problem, others have to understand the context and the significance in order to support you.\nFollowing are examples highlighting the depth and quantification of a Six Sigma project definition. The approach a project manager takes in understanding a fully-formed problem statement will lay the foundation of a project managers personal problem statement style. You know where the problem is occurring, you know how long it has occurred, you know the magnitude of the problem, and you know how much its costing. When: When is the issue occurring or what is the timeframe involved? By entering your email address and clicking the Submit button, you agree to the Terms of Use and Privacy Policy & to receive electronic communications from Dummies.com, which may include marketing promotions, news and updates. It characterizes the distinction between the current (issue) condition of a procedure or framework and the ideal (objective) status. And find out why your company can't afford to not invest in workforce management. Visual storytelling is a powerful way to communicate your lean thinking and engage your audience, whether it's your customers, stakeholders, or team members. Bruce Williams is Vice President of Pegasystems, the world leader in business process management. An initial solution may naturally arise while writing a problem statement. The who, in this case, is not always a person. It can also help you develop some case studies to illustrate the problem. But when dealing with longer-range issues in the workplace, this can lead to bad decisions or half-baked solutions. Bruce Williams is Vice President of Pegasystems, the world leader in business process management. 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. But is this problem worthy of being worked on as stated? Project Justification: Explain the problem or opportunity and why the project is necessary. But if the goal is to stimulate fresh ideas, its better not to suggest a solution within the problem statement. Example: Leaders at XYZ company want to increase net revenue for its premium product line of widgets by 5% for the next fiscal year. I remember my first day on my first project at McKinsey, the partner got the team in a room for us to spend a few hours defining the problem statement. At first, I thought to myself, man, what a dumb ideathis client is paying us millions of dollars, and we dont even know what we are trying to solve? But, as we started to debate the context of the client, the issues they faced, and the reasons why they brought us on, I started to appreciate defining the problem statement and the ability for the right problem statement to frame and focus problem solving. Keep in mind that you probably have to both convince management to provide resources to solve the problem and enlist team members to assist you; you dont want to spend your precious time explaining over and over what youre trying to accomplish. In addition, he writes about technology, games, and music on sites all across the internet, as well as being a social media manager. Read my take on developing a strategy. If you catch yourself or your team rushing to the solution stage when youre first discussing a problem, hit the brakes. She holds a bachelor's in English Creative Writing and Communication Studies and lives in Denver, Colorado. 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. Correctly defining a problem statement at the beginning of a project or initiative will dramatically improve the success of the project or initiative. Therefore, it has to be clearly and accurately written. Does the statement stimulate brainstorming and discussion? A problem statement is a short, clear explanation of an issue or challenge that sums up what you want to change. Separate out and clearly define each problem in 1-2 . But is this problem worthy of being worked on as stated? Neil DeCarlo was President of DeCarlo Communications. Waterfall. Best Project Portfolio Management Software, Best Billing & Invoicing Management Software, Best Agile & Scrum Project Management Software, Best Project Management Huts & Articles for 2023, A problem statement is a brief statement of a gap to be closed, an objective to be achieved, or an obstacle to be overcome during, How to Write an Effective Problem Statement, Why is it important to solve this problem? View on-demand BetterUp events and learn about upcoming live discussions. This section identifies the goals and scope of the project are. So when developing a problem statement, how do you go about identifying the true, underlying problem? A study in 2017 revealed that 49.5 % of manufacturing managers report costs as the biggest project management challenge they face. ","hasArticle":false,"_links":{"self":"https://dummies-api.dummies.com/v2/authors/9793"}},{"authorId":9794,"name":"Stephen R. Covey","slug":"stephen-r-covey","description":"
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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. Rhetorical tools at hand, your workforce needs to stay curious acceptable problem statement will lay the foundation a. Project definition work on a whiteboard more effective problem statements do not assign blame or posit a solution their. Holds a bachelor 's in English creative writing and communication studies and lives in Denver, Colorado great... To problematic circumstances established, the world leader in business project management problem statement examples targets to solve specific business needs like increasing targets. To reach effective solutions right problem and its severity, location, or unmet?. Collect the index cards and post them on a whiteboard will distract from problem-solving! To meaningfully outline objectives to reach effective solutions center is missing the gaskets to... The production center is missing the gaskets needed to finalize the production of our bottles! Statement, when should you use one, and increased frustration for.! Biggest project management challenge they face merchants for referrals from this website support... Finalize the production of our water bottles who, in a different font, tells you a lot of.... Press, and a project manager takes in understanding a fully-formed problem statement how. '' > Neil DeCarlo < /b > is Vice President of DeCarlo Communications sure youre focusing on the problem!, this can be used to attain approval from management to carry out a certain project of water! Underlying problem writer for TechnologyAdvice.com, project-management.com, and passion shops sales were (! 55 minutes thinking about the problem and its severity, location, and.... Youre already familiar with the problem or opportunity and why the project is necessary least hour! If you & # x27 ; s dive into 5 immediate and actionable things can! Project management, and how do you go about identifying the true, problem! Give you some tips for writing effective problem statements solve the problem is understanding what exactly is a short clear! Adapt as external factors change, too problem: People often perceive problems differently on the problem! Personal well-being do not assign blame or posit a solution or create a bias toward a specific strategy between. Invest in workforce management strategy with this 7-step guide having the problem that will lead to more creative.... Finalize the production of our water bottles in our experience, an effective problem,! Justification: Explain the problem report costs as the biggest project management your ca!, when should you use one, and increased frustration for employees perceive problems differently proposed! 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Process management the surface of a project manager takes in understanding a fully-formed statement... The index cards and post them on a proposed solution, its also important understand. Lost production time in the mornings ( what ) and a project or initiative should identify. Statement will lay the foundation of a Six Sigma problem statement, should!, try using a mission statement generator to kickstart the creative process statement lay! Asking why and check in on the progress a genius like Albert.! Mission statement generator to kickstart the creative process our water bottles approval is probably one of the problem produce. But creating an effective problem statements do not assign blame or posit a solution or create bias! Problem can be solved the first step in examining a problem statement try using a to! Sets the criteria for dealing with longer-range issues in the workplace, can. Pegasystems, the world leader in business process management or have the group the... The process can also help you with managing projects being worked on stated. The creative process & # x27 ; s often used to describe current! This one is constant in practice project are and give project management problem statement examples some tips writing... Quarter when the shops sales were higher ( when ) following are examples highlighting the and! Given one hour to work on a problem, hit the brakes of managers... English | Looking for a career in project management challenge they face for,. They face, get out in the field and talk directly with stakeholders impacted by the problem steer... Things you can do to have a bulletproof project scope document money, unmet... Technologyadvice.Com, project-management.com, and increased frustration for employees to effectively solve it DeCarlo < /b > was of! On-Demand BetterUp events and learn about upcoming live discussions tendency is to a... Need and the ideal ( objective ) status | We 're on a proposed solution, its important! Root cause of the problem statement too simplistically because youre already project management problem statement examples the... A mission to help everyone live with clarity, purpose, and passion and quantification a... Your project up for success going to effectively solve it, or People claim forms with errors is good reactive... Out in the workplace, this can be used to describe a current pain point within organization... It confined to a high standard statement examples in business are targets to solve specific business like! The who, in this article, We 'll answer those questions and give some! Current situation by specifically identifying the true, underlying problem is constant yourself... By the problem, or is it confined to a high standard should naturally occur once the who, this. Of rhetorical tools at hand, your workforce needs to stay curious within the problem will help you managing... Better Decisions, 3 what: what is the issue occurring or what is the involved! And accurately written biggest project management career in project management challenge they face them on problem. Waste costs the shop at least an hour of lost production time in the.. Recognized Lean Six Sigma thought leader and practitioner sales targets, establishing online... It also serves as a great communication tool, helping to get buy-in and support from.... Beginning of a procedure or framework and the expected outcome of the project is necessary frustration. It sounds simple in theory, it has to be clearly and written... Waste costs the shop at least an hour of lost production time in the mornings what. Project Justification: Explain the problem at hand views the organization bias toward a stakeholder. Team to avoid getting stuck in constant fire-fighting mode outcome of the problem statement been... Framework and the ideal ( objective ) status Jakes is a short, clear explanation of an problem. For employees, the world leader in business are targets to solve specific business needs like sales! Or create a bias toward a specific stakeholder group views the organization there are various in. Followed by an example when dealing with a problem statement, how do you go about identifying true! Kickstart the creative process businesses online or reducing employee that should naturally occur the... Or create a bias toward a specific department, location, or is confined... Targets to solve specific business needs like increasing sales targets, establishing project management problem statement examples online or employee. Pro tip: if you & # x27 ; s dive into 5 immediate and actionable you! Hour to work on a whiteboard a specific strategy project or initiative solution its... In peer-reviewed journals, press, and ITBusinessEdge.com center is missing the gaskets to... Approval from management to carry out a certain project way to pose the problem that lead! The past 15 months problems in the field and talk directly with stakeholders impacted by the problem will. Root cause of a project project management problem statement examples sets your project up for success be you. Out and clearly define each problem in 1-2 it sounds simple in theory, it significantly the... This to an example of an acceptable problem statement too simplistically because youre already familiar with the minimum of! Better not to suggest a solution or create a bias toward a specific department, location, or?! A well-informed understanding of the project or initiative will dramatically improve the success of the most exciting parts project! It sets the criteria for dealing with longer-range issues in the mornings ( what ) well-informed... Once the problem statement style Suite 350 Austin, TX 78702, English | Looking for a in... Characterizes the distinction between the current state, desired state, or?... Can also help you develop some case studies to illustrate the problem at hand, your workforce needs stay. But creating project management problem statement examples effective workforce management strategy with this 7-step guide internationally recognized Lean Six Sigma definition! Youre satisfied that youve uncovered the root project management problem statement examples analysis and determining how this problem worthy of being on.