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

TURNING OPERATIONAL KNOWLEDGE & COMPLIANCE INTO A COMPETITIVE EDGE

We systemize tacit knowledge into explicit knowledge

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Posts Tagged ‘managing complexity’

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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‘Rules of Record’ … Why ‘System of Record’ Isn’t Enough

Business computing today is characterized by a tangled web of interfaces and data movement from system to system, from source to sink. Knowing the official ‘systems of record’ is basic for resolving discrepancies and demonstrating compliance. But that’s merely a start. What your business really needs today is to know the rules of record. A focus on business rules, rule management, and decision management makes that possible. This post explains. First a little background. If every piece of data in the organization had a single, clear home, identifying official versions would be easy. But in today’s world, operational data is extracted, merged, massaged, re-platformed, and reported many times over, often obscuring original sources. Identifying a ‘system of record’ establishes which source is official for each element (or chunk) of data. In other words, it gives you physical traceability back to source.[1] That’s a first and very basic step for compliance. What physical traceability doesn’t do is explain why that source may have a different value from the copy of the data you’re actually seeing. You might call that difference semantic drift (although that term probably dignifies what often is just plain sloppiness about the meaning and use of data). Since you can’t be sure what rules were applied to create the official version, you can’t easily do a delta on what you’re actually seeing. In other words, you have no semantic traceability back to source. From a compliance point of view, knowing the rules for source data is paramount. Of course, if those rules never changed, you might be able to reconstruct them at an acceptable price when and as needed for compliance. But today, change — at an ever faster pace — is the name of the game. Add massive personalization and customization to the mix and you quickly reach an impossible threshold of complexity and expense. The solution is simply never putting yourself in a position of having to reconstruct rules. Rather, you want to manage rules in such way to keep them ‘on the record’ — i.e., to maintain rules of record for each operational business decision your company makes. Impossible? Not at all. That’s exactly what business rules, rule management, and decision management is all about. There is proven technology to support it.[2] All you need to do is change how you look at the problem. References [1] For additional background on ‘system of record’ see: http://en.wikipedia.org/wiki/System_of_record http://www.yourwindow.to/information-security/gl_systemofrecord.htm [2] For example, Raden and Taylor write, “Logging rules as they execute to create a record of how a decision was made is a common requirement of decision services. They can be managed like a typical logging requirement, except that using business rules makes it easier. Using business rules also makes it possible to use the logged information in both customer-facing and regulatory conversations, because the rules are more user-friendly.” James Taylor and Neil Raden, Smart (Enough) Systems: How to Deliver Competitive Advantage by Automating Hidden Decisions, Prentice-Hall (June 2007), ISBN: 0132347962, p. 358. ~~~~~~~~~~~~~~~~~~ The original version of this post appeared as: “‘Rules of Record’ ~ Why ‘System of Record’ Isn’t Enough,” Business Rules Journal, Vol. 9, No. 1 (Jan. 2008) http://www.BRCommunity.com/a2008/b385.html

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Creating a Business Model: Walk the Walls!

In running facilitated sessions, we like to create each kind of business model on a different wall.  We find that the physical act of walking or shifting focus from one wall to another helps participants rapidly grasp and remember what each wall represents.  It also helps business leads and Business Analysts identify disconnects and gaps in the business solution more readily. We call this walking the walls. Our definition:  managing complexity in developing a business model by figuratively, and as much as possible literally, addressing each primitive as a separate concern (i.e., on a different wall)  In physically walking the walks, we usually put business process model(s) on the left wall and the structured business vocabulary (concept model) on the right wall.  On the front wall we put reminders about the strategy for the business solution (Policy Charter) and on the back wall we capture business rules.   Aside: Business rules go on the back wall to help resist the temptation of wordsmithing, which is better done offline.  In an ideal world, there would be one surface for each of the six primitives of the Zachman Architecture Framework.  (Alas the ceiling and floor are hard to use.)  Business rules, serving as integration relationships, would occupy the 3D space between the six surfaces (even harder to use!).  Our approach approximates the notions well enough in practice.

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