KEY TAKEAWAYS
- A3 problem-solving begins with clearly defining the current and target conditions, with the gap between them forming the problem statement.
- Problem statements should be quantitative, based on direct observations and measurable data, rather than assumptions or vague descriptions.
- While the problem statement focuses on the performance gap, the A3 Problem-Solving title should state the ambition or goal to be achieved, providing a clear direction for improvement efforts.
The starting point for A3 problem-solving is formulating the current and target conditions. The “current condition” refers to the present state related to the problem. The “target condition” represents the goal state we want to achieve. The gap between the two is the problem statement.
Just the facts: Data-Driven Problem Definition
The problem must be defined quantitatively as a specific performance gap between the current and target conditions. Avoid vague descriptions. Instead, directly measure the current state through observation rather than assumptions. Compare this data-driven baseline to a numerical target reflecting the desired and realistic performance level.
Observe First, Anchoring Problems in Reality
A problem requires directly observing the current conditions rather than relying on assumptions. It would be best if you anchored it in reality rather than relying on perceptions or assumptions.
We state problems quantitatively using performance metrics because it allows tracking measurable improvements while implementing solutions.
I recommend writing a problem statement at the end of the “Current Situation” section of your A3 Problem-Solving.
Defining a Problem: Practical Examples
While a problem statement focuses on the performance gap, your A3 Problem-Solving title concerns ambition. It states what to achieve.
Here are a few examples:
Example 1: Increase sales revenue
Background: The current sales revenue for the quarter is $2M, well below the expected $2.5M. So we have to strive for $2.5M for the next quarter.
Problem statement: The sales revenue for the quarter is $2M instead of the expected $2.5M.
A3 Problem-Solving title: Increase sales revenue from $2M to $2.5M for the next quarter.
Example 2: Reduce time-to-market
Background: We create personal finance Apps. For 2023, our time-to-market extended to four months. To regain market share, we must reduce it to three months by the end of 2024.
Problem statement: For 2023, we observed four months time-to-market instead of our standard three months.
A3 Problem-Solving title: Reduce the time-to-market lead time to three months by the end of 2024.
Example 3: Eliminate Infrastructure Incidents
Background: Within the IT department, we have observed one incident per month regarding infrastructure for six months.
Problem statement: We have had one infrastructure incident per month for the last six months.
A3 Problem-Solving title: Eliminate all IT infrastructure incidents by the end of the year.
To define a problem, strive to turn assumptions into facts and data. Set the focus of the analysis by accurately and concisely stating the performance gap in concrete, measurable terms. A well-defined problem statement creates a solid foundation for identifying root causes and developing targeted solutions.
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