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

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‘Business Rule’ Means These 3 Things

Software vendors and others mislead people (badly) about the true meaning of business rule. Let’s set the record straight. The OMG standard SBVR (Semantics of Business Vocabulary and Business Rules, 1.4) defines business rule as a rule that is practicable and is under business jurisdiction. The definition has these three parts: (1) rule, (2) practicable, and (3) under business jurisdiction. Let’s look at each part in turn. 1. Rule Rule in business rule means real-world rule – in other words exactly what the dictionary says rule means. Here are the relevant meanings of rule from Merriam-Webster Unabridged Dictionary [MWUD].

guide for conduct or action [MWUD ‘rule’ 1a]

one of a set of usually official regulations by which an activity (as a sport) is governed [e.g.,] *the infield fly rule* *the rules of professional basketball* [MWUD ‘rule’ 1f]

A real-world rule always tends to remove a degree of freedom.  If it does not, it’s not a rule. Also, a real-world rule is declarative. It never does anything. It merely shapes behavior or decisions. If you’re using an approach where rules can actually do things (e.g., execute an action, set a flag or variable, call a function, etc.), they’re not business rules. You’re in TechnologyLand, and a procedural one at that. 2. Under Business Jurisdiction    Business rule includes only rules that the business can opt to change or to discard. A business rule is always under business jurisdiction of your organization. The important point with respect to external regulation and law is that your organization has a choice about how to interpret the regulations and laws for deployment into its day-to-day business activity – and even whether to follow them at all. So external regulations are not business rules per se. Business rules include only the rules that a business creates in response to external regulation. SBVR explains:

“… legislation and regulations may be imposed on [the company]; external standards and best practices may be adopted. 

These things are not business rules from the company’s perspective, since it does not have the authority to change them. 

The company will decide how to react to laws and regulations, and will create business rules to ensure compliance with them.  Similarly, it will create business rules to ensure that standards or best practices are implemented as intended.”

3. Practicable Practicable means a rule is sufficiently detailed and precise that a person who knows about it can apply it effectively and consistently in relevant circumstances. In other words, the person will know what behavior is acceptable or not, or how some concept is to be understood. A practicable business rule is one ready to become a deployed business rule – i.e., applied in day-to-day business activity. Whether the guidance is to be deployed to staff or ultimately to machines is immaterial. You should get the same results either way. Business policies are generally not practicable in this sense. Business rules always are. ~~~~~~~~~~~~~~~~~~~~ Excerpted from: Building Business Solutions: Business Analysis with Business Rules, 2nd edition, by Ronald G. Ross & Gladys S.W. Lam, 2015 Get the book:http://www.brsolutions.com/b_building_business_solutions.php Get the training: Instructor-led, online, interactive training: October 4-6, 2016 – Business Analysis with Business Rules: From Strategy to Requirements. http://www.attainingedge.com/online-training-business-analysis-with-business-rules.php ©Business Rule Solutions, LLC 2016. wwwBRSolutions.com 

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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.