A Framework for Understanding Problems

We talk about problem spaces, problem statements, market problems, customer problems—but there are very few tools or frameworks to help decompose and evaluate problems in a way that is meaningful for Product teams.

A common simple analysis is: How big or pervasive is the problem? What are the alternatives? Would people pay if you solved it? The answers should come from research with prospects or likely buyers. This is the minimum, but we can do better.

The 4Us framework (from Underscore VC / Michael Skok) evaluates problems along four dimensions. The 4Us when assessing problems are: Unworkable (how painful)—a broken process or result with severe consequences; Unavoidable (how necessary)—something compelling people to act, e.g. GDPR or iOS privacy changes; Urgent (how time sensitive)—must be addressed quickly, e.g. cyber intrusion response; Underserved (how many alternatives)—few existing solutions, e.g. Loopio and RFP response software when they started.

Using the 4Us: Loopio's RFP problem was Unworkable (spreadsheets, email, dozens of people, days or weeks). Unavoidable for vendors selling to enterprises that use RFPs. Urgent (short timeframe to complete and submit). Underserved (few products addressed it well). Loopio identified a problem strong in all four and solved it effectively.

Not every problem scores high in all four. The goal is to think clearly before dismissing a problem. A fifth dimension helps: Universal—identify the audience segment for whom the problem is Unworkable, Unavoidable, Urgent, and Underserved. Narrow down to a subset of the market that has high ratings in the other 4 Us; that's where to start.

External validation is critical. Treat internal discussions as hypotheses; interview your target audience and use their insights to inform your view of the market problem, who it impacts, and who would value solutions.

The value of this framework is a more definitive way of thinking about problems, leading to more constructive and less opinionated discussion. It provides a common language to talk about problems and clarifies how to get additional information for a better assessment. A good framework brings focus, consistency, and clarity.