What does a statement of needs define?

A statement of needs is a crucial document that articulates the specific business problem or opportunity that an organization aims to address. It serves as a foundational piece of information that helps to outline and clarify what is required to achieve desired outcomes. The main purpose of this statement is to provide a clear understanding of the needs of the organization, allowing for effective decision-making and strategic planning.

By focusing on defining the business problem or opportunity, the statement of needs ensures that all stakeholders have a common understanding of what the organization is facing. This common understanding becomes essential when moving into the analysis phase, where potential solutions can be developed and assessed.

While financial forecasts, staffing requirements, and organizational goals are all important aspects of project management and business operations, they do not encapsulate the primary purpose of a statement of needs. Financial forecasts are centered around budgetary aspects, staffing requirements pertain to human resources, and organizational goals focus on the broader vision of the company rather than the specific needs being addressed.