How to define “Business Problem”

How to define “Business Problem”

§A problem statement describes the unfavorable condition that prevents the goal or objective from being achieved

§Quote by Albert Einstein
“If I had an hour to solve a problem I’d spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.”


§Questions to be Answered when defining “Business Problem

§Who is affected
§Whatare the negative impacts
§Whereis it happening ?
§When does it happen
§Note : We should not look for answers for below question :
§Whyis it happening
At minimum, a business problem statement should include :

§Whatis problem or defect
§Magnitudeof the problem ( events , how often )
§Whereis the problem ?
§Whyis it important to work on this problem
§Note: Problem Statement should have impact


Writing the Business Problem Statement

§Describe the current unsatisfactory condition
§Keep it Simple
§Ensure it has impact
§Make it understandable
§Compose wording that is engaging
§Formatted as a bulleted list or paragraph

Examples – Paragraph or Bulleted list

Assembly Line #1 is producing defects at the rate of 4.5% of production (based on the number of returns we are receiving from customers). Reducing defects is critical to improving customer satisfaction.
Bulleted List
What is problem : High rate of defects
Magnitude of the problem : 4.5% of production
Where is the problem : Assembly Line #1
Why is it important : Reducing defects is critical to improving customer satisfaction

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