Enabling Operational Excellence
Enabling Operational Excellence
Enabling Operational Excellence
Enabling Operational Excellence

TURNING OPERATIONAL KNOWLEDGE & COMPLIANCE INTO A COMPETITIVE EDGE

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Black Swans, Business Rules, and Strategy – Re-Clarified

Let me re-clarify what I am, and am not, saying about business rules and black swans. There’s been some confusion. I did not say that preparing for or responding to black swans is all about business rules. (I’m not that naive!) I did say, however, that business rules “… build robustness to negative [black swans] that occur and being able to exploit positive ones” [Taleb’s words]. My main point is this: If you don’t have ready access to your current business rules (i.e., know what they are in depth), then when a black swan occurs you can’t immediately undertake to respond to negative ones, and exploit positive ones. (See: http://goo.gl/Ny2Cn) A colleague wrote: “For example, Taleb cites 9/11 as an example of a black swan. What business rules would prevent or allow successful response to that?” I make no suggestions about prevention. Hindsight is 20-20. But successful response? You need to quickly review what your current business practices (business rules) are …
  • Permissible carry-ons. Box-cutter knives? Immediately banned. Any other sharp items including silverware for meals, banned.
  • Access to the cockpit. Special barriers (food cart, steward(ess)) put in a blocking position when a pilot exits the cockpit to use the lavatory. Doors locks reinforced.
We learn as we go. Amounts of liquid over a certain threshold, banned. Shoes must be removed at security. Souvenir ‘blizzard’ globes, banned. You want to roll out these new business rules fast(!). If you don’t know what business rules you already have in place, you simply can’t respond as fast you need to. Make no mistake, most businesses today sadly don’t really know what their current business rules are. That’s what I’m saying!

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Ronald G. Ross

Ronald G. Ross

Ron Ross, Principal and Co-Founder of Business Rules Solutions, LLC, is internationally acknowledged as the “father of business rules.” Recognizing early on the importance of independently managed business rules for business operations and architecture, he has pioneered innovative techniques and standards since the mid-1980s. He wrote the industry’s first book on business rules in 1994.