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

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Posts Tagged ‘complexity’

Addressing Business Complexity

complexity complicated-flows1[1]A large consulting company recently conducted an assessment of the IT development approach followed by one of our clients that uses our approach for business analysis with business rules. The consulting company judged the approach highly effective because the approach is ‘componentized’ (their description). 

The consulting company meant that business rules are viewed as a component; business processes are viewed as a component; business vocabulary is viewed as a component; etc. ‘Componentized’ may or may not be the right description, but the consulting company hit upon an important point.

Most IT methodologies for requirements development today make no attempt to examine the fundamental questions what, how, where, who, when, and why individually and selectively.  That omission is odd to say the least.  Those six questions are ones all of us ask and answer every day in real life.  The six question words are very basic to our language.

Instead, most methodologies today are centric.  They are process-centric or data-centric or user-story-centric or sometimes even rule-centric or decision-centric.  A centric approach requires force-fitting some or all elements of a solution into a single mold that distorts and submerges other elements.  Worse, a centric approach does little to avoid elements being neglected or omitted altogether.

Business problems are inherently complex and multi-faceted, as are their solutions. So we make every effort to ensure our approach to business analysis is well-factored and balanced – that is, non-centric – right from the start.

A non-centric approach doesn’t make developing winning business solutions harder, just the opposite. By addressing business complexity head on – as naturally factored in the real world – top-quality business solutions are far easier to attain.  Experience proves it time and time again.

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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: April 4-6, 2017 – 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. www.BRSolutions.com

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Six Succinct Reasons for Business Rules

What business problems do business rules address?  My take: 1. Ad hoc rules: Most businesses have no organized approach for specifying their business rules. As a result, business workers often make up the rules as they go along. This leads to confusion, contradiction, and operational inefficiency. After-the-fact resolution of these problems wastes time and resources and causes frustration for customers and staff alike.

Business rule solution: Business rules ensure consistency in customer experience and provably on-target results for demonstrating compliance.

2. Miscommunication: Misunderstanding of key business concepts inevitably results in miscommunication. Does preferred customer discount mean the same across all departments? If not, what are the differences? What rules apply? Do these rules differ for different areas of the business? Are the rules consistent?

Business rule solution: A structured business vocabulary provides a foundation on which rules can be directly based.

3. Inaccessible rules: Finding out what rules apply to a given business situation often involves an open-ended search through multiple sources. It is not uncommon in the end to resort to the application source code. Pursuing rules in this fashion is time-consuming, inefficient, and inaccurate.

Business rule solution: An organized approach for managing business rules yields order-of-magnitude improvements in productivity and business agility.

4. Massive differentiation: Many businesses seek to support highly individualized relationships with growing numbers of customers and other partners across multiple jurisdictions for ever more complex products or services. How can businesses massively differentiate and, at the very same time, conduct each business transaction faster, more accurately, and at ever lower costs?

Business rule solution: Business rules support highly scalable customization and personalization and provide a structural solution for managing complexity.

5. The need to keep up to speed: Rapid change, at an ever faster pace, is a fact of life. In the digital age, people expect almost instantaneous implementation of changes. How can line workers consumed with day-to-day activities ever hope to keep up?

Business rule solution: Real-time delivery of business rules to knowledge workers creates a seamless, never-ending, self-training environment.

6. Knowledge walking out the door: By and large, baby boomers created much of the basic operational business capacity and operational systems we see in place in larger organizations today. Much of the related knowledge still sits in their heads – and nowhere else. Now they are retiring. On a smaller scale, people with vital operational knowledge walk out the door almost every day.

Business rule solution: A systematic way of capturing, documenting and managing business rules enables pragmatic knowledge retention.

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What Role for Business Rules in *Business Analysis*? One of the ‘Must-Knows’ of Business Rules …

Celebrating the 10th Anniversary of the Business Rules Manifesto[1] http://www.businessrulesgroup.org/brmanifesto.htm FAQ #4 Question: What role should business rules play in business analysis? Business rules are what you need to run the business. You would need them even if you had no systems. So it makes sense that business rules should be captured and expressed in a form that business people and subject matter experts can understand. That way they can ensure that the business rules are correct. If you are designing systems – and that usually is the case – there’s simply no point implementing rules that aren’t correct. So the Manifesto says …

5.1 Business rules should be expressed in such a way that they can be validated for correctness by business people.

Validation and correctness, however, are not the only focus for business analysis with business rules. Another is whether each rule can be justified as being truly productive for the business. Businesses often accrue so many rules over time (include ‘exceptions’ in that!) that their spiraling complexity results in rapidly diminishing return. So the cost-effectiveness of every business rule should be assessed, at least informally. To do so, first you must recognize there is cost associated with each rule. The Manifesto makes that point explicit …

8.2 Rules always cost the business something.

A rule’s true cost, however, might not be exactly what you think – the platform costs may be relatively insignificant. Instead, the principal cost of most rules is organizational. Rules must be documented. They must be taught to new hires. They must be explained to external parties. All these things take time – and time is money. Also note carefully: This overhead doesn’t decrease with each additional rule – it increases. The more rules, the more complexity. The Manifesto in no way suggests that more rules is better. Just the opposite; it emphasizes that a smaller number of good rules is always better. Better to start with a smaller number, then add more as you go. The Manifesto puts it this way …

8.5. An effective system can be based on a small number of rules.  Additional, more discriminating rules can be subsequently added, so that over time the system becomes smarter.

It’s simply a myth that you have to know all the rules before designing and building productive business systems. Just the opposite is true. You can deploy a simpler solution initially, then add rules later on as time and insight permits. Fortunately, rule-based systems are extremely good at incremental design – the goal of many an agile project.  


[1] The Manifesto is free, only 2 pages long, translated into 15 languages. Have a quick look (or re-look!). No sign up required. Well worth your time.

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Does Your Business Have a 1000 Business Processes? … Not!

A practitioner recently wrote: ” … businesses typically have over a thousand different business processes. There are often variations of business processes for different regions, products, exceptions and business areas as well as other reasons, that’s why there are so many …”. What kind of “process” could he possibly mean!? A business couldn’t possibly have over a thousand business processes. Such a business would be unmanageable. (Unfortunately, some businesses probably aren’t.) The practitioner’s view misses the crucial insight that for both operational and financial reasons, a business must have a small set of core business processes that are standard. Variations can be handled … within what is acceptable … by business rules. Such variation might have to do with geography, products, best practices, etc. Without business rules, the complexity is simply unmanageable.

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