A problem well defined is a problem half solved

A company wants to reduce its employee turnover. It uses the following five problem solving steps.

  1. Define the problem.
  2. Measure the current state.
  3. Analyze for the root causes.
  4. Implement solutions and achieve improvement.
  5. Plan and execute ideas to sustain the gains.

As a first step it sets up a project charter to define the problem. A Project charter is a one – page snap shot of the project.

A Project charter

A project charter contains

  • The Business Case – Why this project?
  • The problem statement – What is the problem faced?
  • The goal statement – What is the goal of the project?
  • Team members names.
  • Team leaders name.
  • Sponsor(s) name.
  • Process owner name.
  • Primary and secondary project metrics.
  • Project completion timelines, financial and/or customer benefits and what will / will not be in scope.

Find below an example of a completed project charter focused on reducing attrition.

Problem Statement
High attrition. It is more than the benchmark in our industry!
Financial & customer benefits summary
Potential annualized savings of Rs. 57 lakhs PA.
Business Case
Attrition, means loosing our employees, who are trained and skillful resource. When a trained employee leaves. Hard losses include:

  1. Loss of sourcing cost per worker.
  2. Loss of training cost per worker.
  3. Loss of production on account of replacement time for new employee.

Other losses include:

  1. Loss of company’s brand equity, if the worker left in bitter terms.
  2. Loss of company’s image on other working employees, who could follow the pursuit.
  3. Loss of ‘healthy working environment’, resulting from negative propaganda (if any).


Project completion – Start and End dates
Define the problem September 2018 September 2018
Measure the current state September 2018 September 2018
Analyse for vital causes October 2018 October 2018
Improve the process October 2018 November 2018
Control and sustain gains November 2018 Till at least 3 months.
Project constraintsAchieve the solution without negatively impacting worker satisfaction, with least or ROI justifiable investments. Executive sponser: Venugopal

Project sponser: Svaboda

Project Leader: AGM – HR

Project team members:

  1. Personal offiers.
  2. Welfare offiers.
  3. Compliance manager.
In Scope / Out of scope – Category of employees – Workers
Goal statementReduce attrition to = or < 9%; Retention period of LSL = or > 90 days, Min target – 180 days.
Project metrics:

Primary: Worker retention in days, attrition in %

Secondary: Worker satisfaction

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