Business Requirements Document: Meaning, Templates, & More
In the world of modern software development projects, data organization and management is crucial to efficient work. BRDs create a strong foundation for this planning stage to start building progress on top of. Keep reading to learn what a BRD consists of, how to write one, and where to find simple templates to kickstart your process.
BRD Meaning: What is a Business Requirements Document?
BRD stands for Business Requirements Document and is a formal record that details the critical needs and objectives behind a software development project (such as replacing or building a new business application). It also outlines the project's scope, requirements, and expectations — essentially translating the “why” behind the project into actionable steps for the development team.
BRD vs. FRD
While both Business Requirements Documents and Functional Requirements Documents play crucial roles in software development, they differ in scope and focus:
- The BRD takes a higher-level and broader perspective, detailing the project's overall objectives, target audience, and the general vision for the software. The function is less about technical requirements and more about contextual requirements and long-term goals.
- On the other hand, an FRD takes a deeper dive into the software's functionality and provides detailed descriptions of specific features, user interactions, and system behaviors. Its function is similar to a blueprint for the software itself, focusing on the “how.”
Put simply, the BRD sets the stage and defines the problem to be solved, while the FRD details the technical specifications for the solution.
Business Requirements Document Benefits
A well-crafted BRD brings a variety of business and project benefits for the teams and individuals involved:
Reduces Project Failure Rates
Having clearly defined (and findable) requirements in the BRD minimizes the chances of misunderstandings and misinterpretations. This further reduces the risk of project failure from misaligned expectations or poorly defined functionalities.
Helps Monitor Project Health
This document serves as a central point of reference throughout the software development lifecycle. By comparing progress against the agreed-upon expectations, stakeholders and team members can proactively identify and resolve any potential deviations or roadblocks.
Saves Costs
As an extension of this proactivity, an effective BRD can also prevent costly issues down the line. Clear requirements that everyone is on the same page about helps mitigate the need for reworks from late-stage changes. A well-defined project scope also helps manage resource allocation and avoid unnecessary infrastructure investments (either due to over-allocation or reacting to under-allocation).
Fosters Collaboration
The BRD participation process typically involves a lot of different stakeholders, from business users to developers to project managers. This collaborative approach fosters better understanding and communication between different parties, leading to a more cohesive development process.
BRD Components
To get these benefits, an effective business requirements document should typically cover the following key areas:
Executive Summary
A concise overview that provides a high-level understanding of the project's purpose, goals, and expected value. It should be clear, succinct, and engaging to cover this info in a way that doesn’t lose the reader's interest.
Needs Statement
A description of the specific business problem or challenge the software is being designed to address. This section should clearly define the current state and the desired future state after the software implementation.
Project Objectives
An explanation of the objectives that the project aims to achieve. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART), and directly tied to the Needs Statement from above.
Project Scope & Constraints
A clear set of boundaries for the project, as well as an outline of functionalities to be included (in-scope) and any limitations or dependencies (out-of-scope) that could impact the project's timeline or budget.
Financial Statements
While not always necessary, include estimates for development, maintenance, and ongoing costs associated with the software (if applicable). This helps stakeholders understand the project's financial implications.
Functional Requirements
A breakdown of the key functionalities the software needs to deliver from a user's perspective. This area of the BRD should focus on what the software will/should do, avoiding technical jargon and focusing on simple language to define user needs and workflows.
Personnel Requirements
A section that identifies the technical skills and expertise needed within the development team to complete the project on-budget and on-time. This helps assemble the right team with the required qualifications and skills to bring the project to life.
Timelines & Deadlines
An explanation of realistic timelines for different project phases with clear deadlines for deliverables. Doing so enabled the project to stay on track and meet established milestones.
Cost-Benefit Analysis
An evaluation that quantifies the projected costs and benefits of the project in order to demonstrate its business value. This helps stakeholders make informed decisions about resource allocation and project prioritization.
Expectations & Assumptions
An outline that details any assumptions made about the project environment, user behavior, or external factors. This provides transparency and helps identify potential risks that could arise from unforeseen circumstances.
How to Write a Business Requirements Document
Remember, a well-written BRD is a collaborative effort, so ongoing communication and stakeholder involvement are critical throughout the process. Developing an effective BRD with this in mind follows a structured approach consisting of the following main steps:
1. Identify the Company’s Needs
Understand and clarify the core business challenge that the software aims to address. Conduct interviews with key stakeholders and analyze internal data to surface pain points and opportunities.
2. Define the BRD Objectives
Plainly define the goals of the BRD itself. This helps guide the requirements gathering process and lays the foundation for defining project scope. What do you want to achieve with this BRD? Is it to replace a legacy system, add new functionality to cover a gap in capabilities, or overhaul security protocols?
3. Involve All Necessary Parties
Get input from stakeholders across different departments, like users, developers, and managers. This establishes a well-rounded perspective that considers user needs, technical feasibility, and project constraints.
4. Determine Project Phases
Break down the project timeline and life cycle into distinct phases, detailing the necessary inputs and desired (or expected) outcomes for each. This could include requirement gathering, design, development, testing, and deployment.
5. Establish Standards for All Requirements
Define a standardized format for requirements to ensure consistency across all areas (which facilitates easier evaluation). This might involve using templates, specifying the level of detail needed, and establishing a system for prioritizing requirements.
6. Identify Process Milestones
Establish checkpoints throughout the project phases to benchmark progress and surface any potential roadblocks. These milestones could be based on completing specific functionalities, achieving testing criteria, or reaching budgetary targets.
Tips for Writing an Effective BRD
Now that you understand the core components of a BRD, let's explore some practical tips to upgrade your next requirements document:
Begin with Comprehensive Requirements Gathering
This stage of planning is the foundation that your BRD is built on. Employ different techniques to gather detailed information on user needs, workflows, and pain points. Conduct interviews, workshops, and surveys with stakeholders from different departments. Analyze existing data and user feedback to spot areas for improvement. The more comprehensive your understanding of the problem, the better equipped you are to define clear and actionable requirements.
Learn from Past (Successful & Unsuccessful) Projects
Analyze past projects, both successful and unsuccessful. Identify what worked well in previous BRDs and what elements could be improved. Look for recurring challenges or areas where miscommunication led to issues. Leverage these learnings to inform the current project's BRD and create a more effective document.
Get Everyone Involved
A BRD should not be something you create in isolation. Encourage participation from all stakeholders throughout the process, even sometimes including end-users. Have them review and validate the information that’s in the BRD. This approach facilitates a collaborative and exhaustive representation of project needs, fosters a sense of ownership, and reduces the chances of misunderstandings down the road in the project lifecycle.
Use Clear & Actionable Language
Avoid technical jargon and focus on clear, concise language that all stakeholders involved can understand. Imagine you're explaining the project to someone unfamiliar with technical terms. You could also consider including a glossary for unavoidable technical terms that need to be defined. In addition to simplicity and clarity, aim for actionable language that outlines the “what” and “why” behind each requirement.
Include Diagrams & Visuals
Don't underestimate the power of visual aids to convey complex concepts, make information more digestible, and more. Flowcharts, user interface mockups, and data diagrams can significantly enhance the readability and understandability of your BRD. Visuals can help break down ideas and processes so that everyone is on the same page.
Use an Appropriate Template
Many organizations have pre-defined BRD templates that can streamline the creation process. These templates often provide a structured format for outlining key sections and strengthen consistency with existing documentation practices. If no template exists, consider using industry-standard BRD formats for clear communication with stakeholders and developers.
Business Requirements Document Templates
If you don’t already have your own and are looking for inspiration or ready-to-use templates, we’ve come across a handful of examples that may be helpful for your organization:
- Broad template to fit a variety of projects: Stanford University IT
- Variety of different template designs and formats: TemplateLab
- Excel BRD template: Requirement Experts
- Template for technology-specific projects: TechWhirl
- Template for software-specific projects: SmartSheet
Alternatively, a requirements management platform such as SpiraPlan can handle all of your requirements management and documentation needs in a single system:
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