Statement of work: What it is and how to write one

A statement of work (SOW) is a crucial internal document for product managers, serving as a comprehensive guide that outlines a customer problem, the proposed solutions, and the necessary investment required to address the issue. It helps align teams and stakeholders by clearly communicating the customer’s challenges and the rationale behind investing resources to solve them. The SOW typically includes sections on background, the problem, proposed solutions, out-of-scope items, Jobs-to-be-Done (JTBD) user stories, and an estimated investment. This structured approach provides clarity and confidence to the team by establishing a direct connection between problems and solutions, while also facilitating discussions on priorities and resource allocation. An example provided involves implementing two-factor authentication to enhance security in a social media app, illustrating how an SOW can guide decision-making and investment estimation.