Business analysis glossary
Problem Statement
What it is
A problem statement is a short, specific description of what is wrong, who is affected, how we know and why it matters now. It describes the problem, not the solution, and it is based on evidence rather than opinion. It is usually only two or three sentences long, written in the language of the people who have the problem.
Why it matters
A vague problem leads to a vague project. A sharp statement keeps the team focused and lets stakeholders confirm that you are solving the same problem they have. It also gives a simple test later: if a proposed feature does not help solve the stated problem, it probably does not belong in this project.
Example
Weak: "We need a new dashboard." Better: "Regional managers at Lumen Retail wait two days for weekly sales figures because they are compiled by hand, so stock decisions are made on out-of-date numbers." The sentence names who is affected, what happens, the evidence and the consequence, without mentioning any particular tool or solution.