The document outlines a 4-step process for properly defining problems: 1) Establish the need for a solution by identifying the basic need, desired outcome, and beneficiaries. 2) Justify the needs by aligning with strategy, identifying benefits and how they'll be measured, and how a solution will be implemented. 3) Contextualize the problem by considering past approaches, constraints, and external factors. 4) Write a problem statement that clarifies if it's one problem or many, requirements for a solution, who should solve it, necessary information, and how solutions will be evaluated.