3 Problem Levels framework

The three problem levels framework offers a structured approach to innovation by preventing teams from rushing into immediate solutions.

Level one represents the initial request or surface-level issue provided by a stakeholder, which serves as a starting point rather than a final destination.

To reach level two, teams must expand their perspective through data analysis and customer interviews to uncover a wide array of underlying opportunities.

Finally, level three involves reconstructing a specific problem by defining its context, the human actor involved, their emotional response, and the measurable consequences of the issue.

By transitioning through these stages, organizations ensure they are solving meaningful problems with a deep understanding of the impact on their users. This methodical shift from a broad starting point to a highly focused problem definition provides a necessary foundation for effective ideation.

Why is jumping straight to solutions considered a natural human mistake?

Jumping straight to solutions is considered a natural human mistake because it is a natural reaction and what our human brains instinctively want to do. When presented with a problem, such as a stakeholder request, the immediate impulse is to gather a team and start brainstorming ideas to solve it immediately.

This tendency is problematic because it often focuses on a “Level 1” problem, which is merely a starting point or an anchoring topic. By following the natural urge to solve things right away, people fail to engage in the necessary mindset shift required to move back into the “problem space”. Avoiding this mistake requires a process of expansion and focus to reach a “Level 3” problem, which defines a truly meaningful problem for innovation. Jumping to solutions too early means a team likely lacks a clear understanding of:

The Context: The situation in which the problem is occurring

The Human Actor: The specific group of people experiencing the problem

The Experience: The symptoms and emotional impact, such as frustration or fear, that the problem causes

The Consequence: The measurable impact, such as wasted time or financial loss

Without taking the time to move through these levels and understand these elements, a team misses the opportunity to truly understand what they are trying to solve before they begin ideating. These are the key elements of a Level 3 Problem.

The five key elements of a Level 3 problem

A Level 3 problem—which is defined as a focused and reconstructed problem that sparks innovation—consists of the following five key elements:

• Context and Situation: A clear understanding of the specific situation in which the problem is occurring
• Human Actor: Identifying the specific person or group of people who experience this problem, or those who experience it more than others
• Experience: A description of what the actor is actually experiencing and the specific symptoms that are manifested through the problem
• Emotional Impact: The emotional reaction the human actor has as a result of the problem, such as frustration, fear, or stress
• Consequence or Measurable Impact: The ultimate result of people experiencing the problem, such as wasted time, lost resources, or a financial impact
  . Ideally, this element includes a unit of measure, such as hours, dollars, or percentages

Having a clear understanding of these five elements serves as a strong indicator that a team truly understands the problem and is ready to move from the “problem space” into the “solution space” for ideation

The difference between a Level 1 and Level 2 problem

The primary difference between a Level 1 and a Level 2 problem lies in the breadth of perspective and the depth of research involved.

Level 1: The Starting Point

• Definition: A Level 1 problem is the initial “starting problem” or an “anchoring topic”. It is typically presented as a single problem derived from a stakeholder request.
• Example: A stakeholder saying, “We need to improve the checkout experience and make it faster”.
• Characteristics: It serves as a guide for where to look, but it is often the stage where teams mistakenly jump straight into the “solution space” to brainstorm ideas immediately.

Level 2: The Expanded View

• Definition: A Level 2 problem represents an expanded view of the problem space. It is the result of a deliberate “pause” to move back into the problem space rather than rushing to solve it.
• The Process: Moving to Level 2 is an exercise in expansion. It involves gathering information by learning from customers, conducting interviews, and analyzing usage data and human behavior.
• Characteristics: Unlike the single focus of Level 1, Level 2 reveals that there are actually “many, many opportunities and many problems” that could be solved within that broader space.

Key Summary of Differences

While a Level 1 problem is a singular, stakeholder-driven request used as a starting point, a Level 2 problem is a broader exploration that identifies multiple specific opportunities through research and data analysis (divergence). Level 2 is about exploration and identification before focusing back in to reach Level 3 (synthesis).

How do I transition from Level 2 to Level 3?

Transitioning from Level 2 to Level 3 involves a mindset shift where you move from the broad exploration of the problem space back into a narrow, meaningful focus. While Level 2 is about expanding your perspective to identify “many, many opportunities,” Level 3 is about focusing back in to ensure your team has a very strong grasp of the specific problem you are solving.

To successfully make this transition, you should follow these steps:

• Select and Combine: Take one specific problem identified during your Level 2 research—or a combination of related Level 2 problems—and use them to create a detailed new understanding.
• Reconstruct the Problem: You must “reconstruct” the problem into a format that sparks innovation. This means moving away from a general topic (like “speeding up checkout”) and toward a definition of a meaningful problem that your team can ideate around.
• Define the Five Key Elements: The transition is complete when your team can clearly define the five elements that constitute a Level 3 problem:
  1. Context and Situation: The specific setting where the problem occurs.
  2. Human Actor: The specific person or group most impacted.
  3. Experience: The actual symptoms and manifestations of the problem.
  4. Emotional Impact: The actor’s reaction, such as frustration, fear, or stress.
  5. Consequence/Measurable Impact: The ultimate result, ideally measured in hours, dollars, or percentages.

Being able to answer and understand these five elements is the “strong indicator” that your team has successfully transitioned to Level 3 and is finally ready to leave the problem space and enter the solution space.

Example of a Level 3 problem

Let’s see the process of moving from a Level 1 problem to identify the five specific criteria required to transform it into Level 3.

In an fictional Amazon scenario, a stakeholder requests a Product Manager to make the checkout faster. This is a “Level 1” stakeholder request.

After conducting research with customers, analyzing checkout funnel drop-off data, and interviewing customers about their pain points with the current experience, the Product Manager uncovers several frustrations (Level 2 problems). The PM prioritizes them based on criteria he deems important (e.g. using the Problem Opportunity Scoring Model). The PM then reconstructs the problem into a Level 3 problem:

“First-time mobile shoppers (Human Actor) attempting to complete a purchase during peak holiday sales (Context/Situation) are struggling to manually enter complex international shipping addresses on small screens (Experience). This causes high levels of frustration and anxiety about delivery errors (Emotional Impact), leading to a 20% cart abandonment rate and an estimated loss of $500,000 in weekly revenue (Consequence/Measurable Impact).”

How this meets the Level 3 criteria:

Context and Situation: It specifies mobile shopping during peak holiday sales, rather than just “the checkout process”

Human Actor: It identifies a specific group—first-time mobile shoppers—who may experience the issue more acutely than others

Experience: It describes the specific symptom: manually entering complex international addresses on small screens

Emotional Impact: It identifies the specific feelings of frustration and anxiety

Consequence/Measurable Impact: it provides a clear unit of measure, citing a 20% abandonment rate and $500,000 in lost revenue

By reaching this level of detail, a team moves beyond the “Level 1” stakeholder request (“make checkout faster”) and develops a “detailed new understanding” that is ready for the ideation and solution phase.

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Download the guide to Level 3 Problems

Here is a downloadable guide to identify and define Level 3 Problems, including a framework you can use to define the five elements of a Level 3 Problem: