business requirement document example

Imagine investing time, effort, and resources in project requirements, only to realize that the requirements were wrong. The consequences can be detrimental and lead to a complete waste of resources.

Without a clear vision of the business requirements of a project, it's easy to lose sight of the end goal and face costly setbacks. Fortunately, there is a powerful tool that can pave the way for a successful project: a Business Requirements Document (BRD).

Using BRDs, you can capture, communicate, and manage project requirements so your project stays on course. In this article, we'll explore BRDs, go over the basics and how to use them in various project management scenarios. We'll also provide you with an outline to use and practical tips to leverage BRDs effectively.

What is a business requirement document (BRD)?

A BRD is a document used to define a project's requirements. It clearly outlines the project's key functionalities, features, and goals. It also acts as an active resource in the project management process and is vital for creating project plans.

Simply put, a BRD documents the specific expectations an organization hopes to achieve. It defines the “what,” “why,” and “when” of the business needs and objectives.

BRDs also help bridge the gap between project stakeholders, teams, and clients. Aiding them to work together better and to avoid unnecessary requirements mistakes.

Business requirements vs. other requirements

A business requirements document provides a high-level view of a project’s business solution. While it paints a broad picture, it’s just one of several requirements documents that may be needed for effective project management.

As your project progresses and evolves, other specialized requirements documents may be used to address specific aspects in finer detail. These may include:

Functional requirements

A Functional Requirements Specification (FRS) or Document (FRD) is a step-by-step guide — or the “how” of the process. It covers specific tasks, detailing how each feature of a product or system will function.

For example, if your project is to build new software, the functional requirements could describe how users would log in, how data would be saved, and how the search feature would work.

User requirements

Each project is ultimately designed for users or consumers. A User Requirements Document (URD) captures end-users’ needs and expectations. It explains what users want and expect from the project or product.

It also addresses pain points the users might have faced before. This could be as simple as finding an item in an online store or being able to easily edit a document using certain software.

Product requirements

As you might guess, a Product Requirements Document (PRD) offers details about the product itself, such as its main features and purpose. For a new smartphone, this could include its screen size, battery life, and camera quality.

These details are important for design and marketing teams to shape the final product and promote it to potential customers.

Non-functional requirements

Lastly, there’s the Non-Functional Requirements Document (NFRD), which focuses on the overall quality and performance of a product or project. They describe how well a system can operate under certain conditions and constraints.

For a software product, this could include maintaining speed with thousands of users at once, bolstering security to protect against potential hacks, or guaranteeing accessibility for those with disabilities.

Benefits of using BRDs

BRDs have many benefits that help projects get and stay on track.

The most obvious benefit is that it clearly defines the overall project requirements. In fact, according to research, poor requirements gathering is one of the main reasons many projects fail. So there really is no excuse for not using a BRD and reaping the rewards.

Let's quickly visualize two other important benefits:

• The BRD could play an active role in managing unexpected changes to the project expectations. The team can assess the changes' impact and ensure any addition is accounted for, not just in the BRD, but in terms of schedule and budget.
• In situations where following regulations was important, project managers can use the BRD to identify and include all necessary requirements. This way, the team can make sure that the project meets the required standards and avoids possible penalties or delays.

Another advantage of BRDs is how they help teams prioritize requirements. This way, they can visualize the requirements and focus on meeting the most critical needs first.

How can BRDs be used?

BRDs act as a valuable reference for future project iterations. They capture and document essential requirements so teams can refer to them when planning future projects.

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.

BRDs are useful beyond project management:

1. BRDs act as valuable tools when working with external vendors or suppliers. With a BRD, you can articulate your requirements and expectations.
2. BRDs are also instrumental in finding gaps and inefficiencies in current processes. To do this, you should create a BRD for your business process and use it as a reference point.

What should a business requirement document include?

A comprehensive business requirement document has eight main components. Let’s break down each one and go over its do’s and don’ts:

1. Executive summary

The executive summary is a snapshot of your entire project. This section offers a concise description of what the project is about, who it’s for, and what you expect to achieve.

Do:

• Keep it short and straight to the point.
• Highlight the project’s primary objectives and expected benefits.
• Mention the key project stakeholders or departments involved.

Don’t:

• Get technical.
• Use unnecessary jargon.
• Overpromise or oversell the expected outcomes.

2. Project objectives

Project objectives are the clearly defined goals that you aim to meet by the end of the project. Clear objectives help guide your team’s efforts.

Do:

• Make each objective SMART — specific, measurable, achievable, relevant, and time-bound.
• Align the project objectives with the business objectives.
• Clarify and distinguish between the project’s primary and secondary objectives.

Don’t:

• Be overly broad or vague.
• Set too many objectives, as that might dilute focus.

3. Project scope

A well-defined project scope marks what’s included in the project and what’s left out, helping your team focus on core objectives. This helps avoid scope creep.

Do:

• Clearly list what is and isn’t included.
• Regularly revisit and update the scope as needed.
• Include all stakeholders when determining the project scope.

Don’t:

• Assume something’s included without documenting it.
• Make changes to the scope without proper review and approval.

4. Business requirements

Business requirements detail what your business needs to address or change to achieve project success.

Do:

• Frame requirements in measurable terms.
• Identify and document how the business requirements can affect one another.

Don’t:

• Finalize business requirements without first getting feedback from stakeholders and end-users.

5. Key stakeholders

Key stakeholders are individuals or groups with a vested interest in the project. Including them in your business requirement document will clarify their roles and responsibilities.

Do:

• Identify all relevant stakeholders.
• Provide a clear description of each stakeholder’s role.

Don’t:

• Omit any significant stakeholder groups.

6. Schedule and timeline

The schedule and timeline section should detail the major project milestones and expected project completion date.

Do:

• Define your milestones and purpose in clear detail.
• Set realistic, achievable deadlines.

Don’t:

• Be rigid about schedules or timelines changing.

7. Project constraints

Project constraints are potential barriers or limitations that might affect the project.

Do:

• Present a realistic assessment of each constraint.
• Order the constraints from biggest potential impact to smallest.

Don’t:

• Downplay the identified constraints.

8. Cost-benefit analysis

Cost-benefit analysis involves comparing a project’s expected costs to its projected benefits.

Do:

• Thoroughly research and collect data.
• Express costs and benefits in measurable terms.

Don’t:

• Rush through the analysis and present inaccurate calculations.

Write an effective business requirements document in 10 steps

To create a powerful BRD, consider the following steps:

Step 1: Project background

Establish the purpose of the document and describe what the project aims to achieve as well as why it's significant.

Step 2: Define objectives

Articulate the business objectives outlined in the project scope linking them to measurable outcomes.

Step 3: Stakeholder analysis

Identify and analyze key stakeholders for their roles, responsibilities, and expectations.

Step 4: Gather requirements

Engage stakeholders through interviews, workshops, or surveys to capture important requirements accurately.

Step 5: Document assumptions and constraints

Document beliefs and limitations related to the project goals.

Step 6: Document functional requirements

Capture the desired capabilities of the system and what it must do to meet business needs.

Step 7: Document non-functional requirements

Identify and document non-functional requirements that contribute to the outcome.

Step 8: Prioritize requirements

Prioritize the gathered requirements based on importance and impact.

Step 9: Validate and review

Engage stakeholders and ask for feedback to ensure the documented requirements meet expectations.

Step 10: Get it signed

Share the finalized BRD with stakeholders for their sign-off to formalize agreement on the documented requirements.

Extra tips for a powerful BRD

• Use visuals: diagrams, flowcharts, or wireframes
• Include use cases: scenarios to illustrate system use
• Define key performance indicators (KPIs) to track achievements
• Think about user experience (UX) by capturing UI requirements
• Keep the BRD updated: to track changes

Why brevity is key

A good BRD must contain a lot of information. However, effective BRDs shouldn’t typically exceed 3-4 pages. The goal is concise and clear documentation to facilitate communication and understanding among all parties involved.