Imagine constructing a house – a process intricate and detailed, requiring careful planning and execution. Similarly, in the business world, understanding and applying business rules in analysis is akin to laying the foundation for a sturdy and resilient building. This article serves as a guide for product owners, business analysts, and project managers, leading them through the foundational aspect of business rules in the corporate structure.

The Essence of Business Rules

Business rules are the blueprint of an organization, setting the structure for decisions and actions.

Just as a blueprint defines the layout and boundaries of a house, business rules establish the guidelines and limits within which an organization operates.

Take a look for example: A rule like “All customer refunds over $100 must be approved by a manager,” sets a clear boundary for employees, akin to a load-bearing wall in a house that defines spaces and supports the structure.

Recognizing and accurately applying these rules is crucial for professionals to construct a well-organized and efficient business environment.

The Role of Analysis in Business Rules

Analysis is like assessing the quality and suitability of building materials.

A business analyst, much like an architect, examines and evaluates business rules to determine how they fit into the larger structure of the organization.

Example: In a retail company, analyzing a rule like “All discounts above 20% must be authorized by the regional manager,” is similar to deciding on the type of materials to use for different parts of a building based on strength and cost.

Thorough analysis ensures that business rules are not only well-understood but also appropriately integrated to support and enhance organizational operations.

The Challenge of Changing Business Rules

Business rules, like building designs, are subject to change.

Just as modifications in a building plan are sometimes needed to accommodate new requirements or improve functionality, business rules can change in response to market dynamics, regulatory changes, or strategic shifts.

A revision in data protection laws might necessitate a change in customer data handling rules, similar to how updated building codes can lead to changes in construction plans.

Staying informed and adaptable to these changes is vital for professionals, ensuring that the business structure remains compliant and relevant.

Collaborative Approach in Rule Analysis

Collaboration is crucial in both constructing a building and analyzing business rules.

Like a construction project that requires the coordinated efforts of architects, engineers, and builders, navigating business rules demands teamwork among various departments and stakeholders.

Introducing a new business rule requires a collective effort, akin to a team of builders working together to integrate a new section into an existing structure.

This collaborative mindset not only ensures a comprehensive understanding of the rules but also promotes a unified and dynamic approach to business management.

Understanding Processes for Analysts in Identifying Business Rules

For analysts, understanding the company’s processes is akin to a builder knowing every nook and cranny of a construction site.

Just as a builder needs to be intimately familiar with the site to make informed decisions, analysts must deeply understand their company’s processes to effectively identify business rules. This involves exploring every aspect of the organizational workflow, much like inspecting the intricacies of a building’s layout.

An analyst in a manufacturing company might delve into production processes to unearth rules related to quality control or supply chain management, similar to how an inspector examines a building’s wiring or plumbing to ensure compliance with construction standards.

This comprehensive understanding of processes not only helps in uncovering existing business rules but also aids in identifying areas where new rules might be needed, ensuring the structural integrity of the business operations.

The Importance of Identifying Business Rules for Product Owners

For product owners, identifying business rules is essential for understanding how these rules manage and shape their products.

In the same way that an architect must understand the constraints and possibilities of a building site, product owners need to grasp the business rules that define the scope and limitations of their product development.

A product owner in a financial services company needs to be aware of compliance and regulatory rules that could affect the features and functionalities of a new financial product, much like how a building’s design must adhere to zoning laws and building codes.

By understanding the business rules that govern their products, product owners can make more informed decisions, ensuring their products not only meet organizational standards but also respond effectively to market needs and regulatory requirements. This knowledge serves as a critical component in laying the groundwork for successful product development and management.

Supplementing Organizational Models with the Structure of Business Rules

Building a structure of business rules supplements and enhances the existing models of an organization, much like adding essential features to a house.

Just as a house is more than its walls and roof, requiring plumbing, electrical systems, and interior design to become fully functional, an organization’s operational model gains depth and effectiveness with a well-structured set of business rules. These rules act as the critical systems and features that bring the organizational model to life, ensuring its efficiency and functionality.

In a company, the process model might outline the sequence of activities for product development. The addition of business rules, such as quality standards and approval processes, provides the necessary details and guidelines, similar to how an electrical plan or plumbing layout supplements the basic architectural design of a house.

By supplementing process models or other organizational frameworks with a robust structure of business rules, companies can ensure a more comprehensive and coherent approach to business management. This integration is key to creating an operational environment that is not only well-defined but also adaptable and responsive to changing business needs and market dynamics.

Summary

Mastering the art of business rule analysis is like building a house with a strong foundation and a well-thought-out design. For product owners, business analysts, and project managers, this understanding is the cornerstone of constructing a successful and sustainable business. Remember, in the grand design of business, each rule is a brick that contributes to the integrity and functionality of the overall structure.

Takeaways

• 💼 Business rules are like blueprints for organizations, setting boundaries and guidelines.
• 🧐 Business analysts play a role similar to architects, assessing and evaluating business rules.
• 🔄 Business rules can change due to market dynamics, regulations, or strategic shifts.
• 🤝 Collaboration among departments and stakeholders is crucial for navigating business rules effectively.
• 🏭 Analysts must deeply understand company processes to identify and apply business rules effectively.
• 📦 Product owners need to understand business rules to shape and manage their products effectively.
• 🏗️ Business rules enhance organizational models, making them more efficient and adaptable.

About author

I’m Karol Kordziński from Poland . I’m an analyst with a couple of years of experience. I’m the owner of ITGrowPartner where we help small- and medium-sized companies analyze projects.  But mainly I’m the owner of Product Core Lab. Saas tool to manage a product in the whole Product Lifecycle. With this tool, you can explain your product and processes in a structural method. We introduce you to how to model software products step by step