What is a business requirement document (BRD)?

A BRD is use for gathering project’s requirements. BRD defines project’s key functionalities, features, and target goals. It also acts as an active resource in the project management process and is vital for creating Projects.

BRD is specific expectations an organization hopes to achieve. It defines the “what,” “why,” and “when” of the business needs.

Benefits of using BRDs

1)Clear communication

2)scope management

3)Change management

4)Future reference

5)Stakeholder management

6)Requirement gathering

7)Project success

How can BRD documents be used?

BRDs is a valuable reference for future project iterations. They capture and document essential requirements, so teams can refer BRD’s when planning future projects.

Talking about improvements, BRDs also help with system enhancements. After project teams find areas for improvement, they can use the BRD to check how the new changes align with the existing requirements.

Step 1: Identify the Project background

The project background sets the stage for the rest of the BRD. It provides context and establishes the purpose of the document.

Write down an overview of the project and its context. Describe what the project aims to achieve and why it’s significant.For example, let’s say you are working on creating an app for a restaurant. In the project background section, we’ll explain the goal of creating a user-friendly app for customers to order food easily.

Step 2: Define the objectives of project

In this step, you should articulate the business objectives that the project aims to achieve. These objectives can come from the project charter or business case.

You should also link the objectives to measurable outcomes. This way, we get a clear objective and can measure the project’s success or evaluate it. For example, if the objective is to increase customer satisfaction, a measurable outcome could be to achieve a 20% increase. We can also make it timebound and say it has to be done within six months of launching the project.

Step 3: Stakeholder analysis and assumptions

Next, you should identify and analyze the key stakeholders for the project.

Stakeholders are individuals or groups that can influence a project’s outcome. If we use the example from before about creating the app, we can identify app users as stakeholders. We can then identify certain characteristics about them and think about what they need and the role they will play in the project.

You can also create user stories, which are great for figuring out user requirements. User stories follow a format like: “As a (user), I want to be (assume requirements here).”

Step 4: Gathering requirements

To gather info from stakeholders, try interviews, workshops, or surveys. Try to tailor these around their needs, expectations, and desired outcomes.

Here you need to dig deep and listen carefully to what stakeholders say. You should ask open-ended questions to encourage them to provide detailed and specific information.

This way, you can capture all the important requirements accurately.

Step 5: Document assumptions

In this step, you should document the assumptions of the project goals.

Assumptions come from beliefs we create about something without having concrete evidence. Constraints are the limitations or restrictions that may affect the project’s execution.

Let’s use an example. In this one, we are developing a website for a client. An assumption could be that ‌website users will know how to navigate through web pages. A constraint could be that the website must be compatible with a specific web browser.

Documenting these two elements helps us manage expectations and make informed decisions later on.

Step 6: Document functional requirements

Next up, you should focus on capturing the functional requirements that outline the desired capabilities of the system.

Functional requirements describe what the system should be able to do to meet business needs.

Step 7: Document non-functional requirements

Up next, you should identify and write down the non-functional requirements of the system.

These requirements focus on factors like performance, usability, security, and other quality aspects. Basically, they are the requirements that fall outside the basic function of the system. However, they still contribute to the success of the system.

For example, scalability could mean making sure the system can handle more users or data as it grows without slowing down. Reliability requirements could be about making sure the system works consistently without unexpected issues. Regulatory compliance is so that the system follows relevant laws and rules. Usability is about making the system easy to use and so forth.

Step 8: Prioritize requirements

Now, you should prioritize the requirements you gathered based on their importance and impact.

Prioritizing helps us focus on the most critical aspects of the project so that they receive proper attention.

To prioritize requirements, you can use techniques like MoSCoW prioritization or a ranking system.

MoSCoW stands for Must have, Should have, Could have, and Won’t have. It helps to categorize requirements based on their level of importance and urgency.

Here’s a quick example:

1. Requirement: The system should allow users to search for products by category.
   1. Priority: Must have
   2. Explanation: This is essential as it directly contributes to the system’s core functionality.

Step 9: Validate and review

After ranking the requirements, you should get the BRD validated and reviewed. This makes sure that the requirements accurately capture the project needs and align with the desired outcomes.

To validate the requirements, you can engage ‌‌stakeholders and ask for their feedback. This way, you can see if the documented requirements meet their expectations and make changes if needed.

You should also conduct a full review of the BRD. Check the language used and the details, and ask your team to review it.

Step 10: Get signed off the document

In the last step, you share the finalized BRD with the stakeholders and get their sign-off. Sign-off guarantees that all parties involved agree and formally approve the documented requirements.

To obtain sign-off, you can circulate the BRD among the stakeholders and allow them to review it. Make sure it is clear who has authority to approve the BRD.

Ask them for their sign-off once they are content and have no further changes or requests.

Obtaining a sign-off is an important milestone in the BRD creation process. Knowing that the documented requirements are approved can give you a ton of confidence to tackle the project.

Business requirements document template

Below is a BRD template that you can use to create your own BRD.

[Project Name]

Business Requirements Document

1. Introduction:

• Provide overview of the project and project objectives.
• State the abstract of the BRD.

2. Project overview:

• Describe the project background, including the need for the project.

3. Stakeholders:

• Identify the key stakeholders involved in the project.
• List their roles and responsibilities.

4. Business requirements:

• Describe the high-level business needs and objectives that the project aims to address.

5. Functional requirements:

• Specify the specific functionalities and features required to meet the business needs.
• Organize the functional requirements into categories or modules.

6. Non-functional requirements:

• Outline the quality attributes, constraints, and performance expectations for the project.

7. Assumptions and dependencies:

• List any assumptions made during the development of the BRD.

8. Constraints:

• List any limitations or project constraints.
• This may include budgetary restrictions, time constraints, or resource limitations.

9. Acceptance criteria:

• Define the criteria or conditions that must be met for the project to be considered complete.
• Clearly state the measurable outcomes or deliverables that demonstrate project success.

10. Sign-Off the document:

• In this stage sign off on the BRD document from customer. 

How to write a powerful BRD…

To create a more compelling and useful BRD, try these tips:

• Use visuals: such as diagrams, flowcharts, or wireframes
• define use cases: DEfine use cases for illustrate how the system will be used
• Define success metrics: or key performance indicators (KPIs) to track the achievements
• Think about user experience (UX): Think about UX by capturing user interface (UI) requirements
• Involve subject matter experts: especially for complex or specialized domains
• Keep the BRD updated: to track changes.