How to Write a Business Requirements Document (BRD)

In 2008, Lowe’s, the major home improvement retailer, launched a $1.4 billion IT project to modernize its supply chain. Three years later, they abandoned the project, citing “inadequate requirements gathering” as a key reason for failure. This expensive mistake shows why clear, detailed business requirements are crucial.

A Business Requirements Document (BRD) helps prevent such costly errors. It’s a key tool for project success, helping teams understand goals, align expectations, and plan effectively. Utilizing a business requirements document template can further streamline the process by providing structured guidance and outlining key sections, making it easier to create comprehensive BRDs.

Many struggle with creating useful BRDs. They often end up too vague, too complex, or simply ignored. If you’ve faced this problem, you’re not alone.

This guide aims to help you improve your BRD writing skills. We’ll cover the basics and share practical tips to make your BRDs more effective. While we can’t guarantee perfection, these ideas should help you create clearer, more useful documents.

Let’s get started with some practical advice for better BRDs.

What's a BRD?

A Business Requirements Document (BRD) is the foundation of any major business project. A business requirements document describes the high-level business needs, expectations of users, and serves as a guiding tool for stakeholders to ensure project alignment with overall business goals.

A BRD is essentially the business case for your project, written in clear language that both executives and team members can understand. It covers high-level objectives, expectations, and business needs without delving into technical details.

Why BRDs Matter

A good BRD helps in 4 ways. It:

1. Aligns stakeholders
2. Prevents misunderstandings
3. Guides decision-making throughout the project
4. Helps secure buy-in and resources from leadership

Clearly defining business objectives as part of project documentation is crucial. This aligns project stakeholders and articulates the strategic outcomes expected from projects, highlighting the necessity of linking objectives to broader business goals and requirements.

Without a BRD, you risk scope creep, misaligned expectations, and wasted resources.

When to Use a BRD

Create your BRD early in the project lifecycle - after initial approval, but before detailed planning or technical specifications. This ensures everyone understands what needs to be done before deciding how to do it.

Effective business analysis is crucial at this stage to identify and document requirements, ensuring a clear understanding of client needs and successful project outcomes.

Remember: While comprehensive, your BRD shouldn’t be static. Review and update it as your project evolves to keep it relevant and useful.

Next, we’ll explore the key components of an effective Business Requirements Document. These elements will help you create a BRD that both informs and guides your team throughout the project.

People Involved in Creating a BRD

Creating a Business Requirements Document (BRD) is a team effort that brings together various stakeholders, each contributing their expertise to ensure the document is comprehensive and accurate. Here’s a look at the key players involved:

• Business Analysts: These professionals are at the heart of documenting business requirements. They engage with stakeholders through interviews, surveys, and workshops to gather detailed information. Their role is crucial in translating business needs into clear, actionable requirements.
• Project Managers: They oversee the entire project, ensuring that the BRD aligns with the project’s objectives and scope. Project managers coordinate between different teams and keep the project on track.
• Stakeholders: These are the individuals or groups with a vested interest in the project’s outcome. Their input and feedback are vital to ensure the BRD meets their needs and expectations.
• Subject Matter Experts (SMEs): SMEs provide specialized knowledge on specific aspects of the project, such as technical or functional requirements. Their insights help in shaping a more detailed and accurate BRD.
• Project Sponsors: Typically senior executives, project sponsors provide strategic direction and support. They ensure the project aligns with the organization’s overall goals and objectives, and their buy-in is crucial for securing resources and support.

By involving these key players, you can create a BRD that is well-rounded, accurate, and aligned with your business goals.

Seven components of a BRD

A good Business Requirements Document (BRD) tells a clear, compelling story of your project’s purpose and potential. Here are the essential components:

1. Executive Summary: A brief overview that quickly conveys your project’s essence.
2. Project Objectives: Specific, measurable goals tied to business value.
3. Project Scope: Define what’s included and what’s not to prevent scope creep.
4. Business Requirements: The specific needs your project must fulfill to succeed. It is crucial to distinguish between business and functional requirements, as business requirements define the overarching goals and motivations behind a project, while functional requirements detail the specific functions needed to achieve those goals.
5. Key Stakeholders: People with a vested interest in your project’s outcome.
6. Project Constraints: Limitations in budget, time, resources, or technology.
7. Cost-Benefit Analysis: Expected costs versus anticipated benefits.

These components answer key questions: *What are we doing?*Why? Who’s involved? What do we need to succeed?

Your BRD is more than paperwork. It’s a tool for aligning your team, securing resources, and setting up your project for success. Next, we’ll explore each component in detail, showing you how to craft them effectively.

Writing a BRD: A Guide

Here’s a breakdown of the key sections in a Business Requirements Document (BRD) and what to include in each:

A business requirement document (BRD) is essential for ensuring that all stakeholders have a clear understanding of the project's goals, requirements, and scope, ultimately aiding in the project's successful execution.

Executive Summary

Write a brief overview that:

1. States the main purpose of the project
2. Summarizes key benefits
3. Keeps to one page or less
4. Uses clear, jargon-free language

Example

"Project Phoenix will implement an AI chatbot for customer service, aiming to reduce response times, improve satisfaction scores, and lower support costs."

Project Objectives

List 3-5 specific, measurable goals:

1. Tie each to a business goal
2. Make them specific and measurable
3. Include a timeframe

Examples

• Increase online sales conversion from 2% to 3% by Q4 2024
• Reduce customer churn from 5% to 3% within 12 months of launch
• Achieve 98% uptime for the new platform in the first month

Project Scope

Clearly state:

1. What's included in the project
2. What's not included
3. Any project phases, if applicable

Example

"Project includes:

• AI chatbot development
• CRM system integration
• Staff training

Does not include:

• Customer service portal revamp
• Third-party messaging app integration"

Business Requirements

List the key needs the project must address:

1. Focus on what needs to be done, not how
2. Be clear and specific
3. Prioritize the requirements

It is important to distinguish between functional requirements and non-functional requirements. While functional requirements focus on essential system features, non-functional requirements pertain to quality attributes and usability factors that enhance user experience.

Examples

• Reduce average response time to under 5 minutes
• Chatbot must handle 80% of common queries without human intervention
• Integrate with existing customer database for personalized responses

Key Stakeholders

List relevant parties:

1. Include their roles
2. Note their level of involvement
3. Mention how the project affects them

Project stakeholders play a crucial role in various phases of project documentation and execution. Their involvement is essential for ensuring data privacy, alignment with business goals, document validation, and defining project scope.

Examples

• Sarah Johnson, VP of Customer Experience: Project sponsor, oversees customer service KPIs
• Mark Lee, IT Director: Manages technical implementation, allocates IT resources

Project Constraints

List known limitations:

1. Budget
2. Timeline
3. Resources
4. Technology

Examples

• Budget: $500,000 for FY 2024
• Timeline: Launch by Q3 2024
• Resources: Current IT team at capacity
• Technology: Must be compatible with existing Oracle database

Cost-Benefit Analysis

Provide a basic breakdown:

1. List major costs
2. Estimate key benefits
3. Include non-financial benefits

Example

• Costs:some text
  • Development: $400,000
  • Annual maintenance: $50,000
• Benefits:some text
  • Estimated annual support cost savings: $2M
  • Projected increase in sales: $1.5M/year
  • Expected improvement in customer satisfaction

Remember, a BRD is a working document. You may need to revise it as the project details become clearer.

Advice for Writing Your BRD

Now that we’ve covered the main sections of a BRD, I’d like to share some practical advice based on my experience. Here’s what I’ve found helpful:

1. Keep it simple. You’re writing for a variety of stakeholders, not all of whom will be familiar with technical jargon. Use plain language whenever possible.
2. Be specific. Vague requirements lead to misunderstandings. If you find yourself using words like “improve” or “enhance,” ask yourself if you can quantify that improvement.
3. Collaborate. Don’t write your BRD in isolation. Talk to stakeholders, team members, and end-users. Their input is invaluable and will help you avoid oversights. Utilizing the Business Analysis Body of Knowledge (BABOK) can be crucial for effectively gathering and categorizing business, stakeholder, and product requirements.
4. Use visuals. If a picture is worth a thousand words, a good diagram or chart can save you a lot of writing. Consider using flowcharts, mind maps, or even simple tables to illustrate complex ideas.
5. Prioritize. Not all requirements are equally important. Clearly indicate which are must-haves and which are nice-to-haves. This will help with decision-making later in the project.
6. Review and revise. Your first draft won’t be perfect, and that’s okay. Share it with key stakeholders and be open to feedback. A BRD is a living document that can and should evolve.
7. Think long-term. While focusing on immediate needs, also consider how this project fits into your organization’s long-term strategy. This can help justify the project and guide future decisions. Ensure it ties to your company’s OKRs.

Role of Business Analysts

Business Analysts (BAs) are pivotal in the creation of a Business Requirements Document (BRD). Their responsibilities extend beyond mere documentation; they ensure that the project’s business requirements are thoroughly understood and clearly articulated. Here’s how they contribute:

• Gathering and Documenting Requirements: BAs use various techniques such as stakeholder interviews, surveys, and workshops to gather business requirements. They document these requirements in a clear and structured manner, ensuring they are understandable to all stakeholders.
• Analyzing and Prioritizing Requirements: Once gathered, BAs analyze the requirements to ensure they align with the project’s objectives and scope. They prioritize these requirements based on their importance and impact on the project.
• Developing and Maintaining the BRD: BAs are responsible for creating the BRD and ensuring it remains accurate and up-to-date throughout the project lifecycle. They regularly review and revise the document as new information becomes available.
• Collaborating with Stakeholders: BAs work closely with stakeholders to ensure their needs and expectations are met. They facilitate communication between stakeholders and the project team, ensuring everyone is on the same page.
• Providing Guidance and Support: BAs support the project team by clarifying business requirements and ensuring the team understands the project’s goals. They help translate business needs into technical specifications, bridging the gap between business and technology.

In essence, Business Analysts ensure that the BRD is a true reflection of the business needs and that the project delivers value to the organization.

How BRD fits with your existing docs

Your Business Requirements Document (BRD) is just one piece of the project documentation puzzle. Software development plays a crucial role in project execution and documentation management, ensuring that well-defined requirements are met throughout the software development life cycle. Let me explain how it relates to other important documents you might encounter:

Functional Requirements Document (FRD)

While your BRD outlines what you want to achieve, the FRD details how you’ll do it. It’s the BRD’s more technical iteration. For example:

• BRD: “We need to reduce customer response time to under 5 minutes.”
• Business requirements documents are crucial in managing and streamlining high-impact projects, particularly in the technology sector.
• FRD: “The system will use AI to categorize and auto-respond to common queries within 30 seconds.”

User and product requirements

These documents zoom in on specific aspects:

• User Requirements focus on what your end-users need.
• Product Requirements outline specific features your product should have.
• Both should align with the goals in your BRD.

Choosing the right documents

You don't always need all these documents. Here's a simple guide:

For a small project, a BRD might be enough.

For a complex technical project, you'll probably want a BRD and an FRD.

For new product development, consider using all four types.

My advice?

Don't create documents just for the sake of it. Use only what you need to clearly communicate your project's goals and requirements. And remember, these documents should work together, not contradict each other.

When you're writing these documents, collaborate with your team. Getting input from different perspectives will help you create more comprehensive and accurate documentation.

In the end, good documentation is about clear communication, not about following a rigid template. Use these documents as tools to help your team understand and achieve your project's goals.

Making Your BRD Work Harder

So, you’ve got your BRD basics down. Nice work! Now, let’s chat about how to make that document really shine.

At Slite, we believe in making work feel less like work. That includes creating and managing your BRDs. Here are some features we think make a big difference:

1. Ready-to-go templates: Jump-start your BRD with a structure that just makes sense.
2. One home for all docs: Keep everything in one spot. No more “Where did I save that file?” moments.
3. Time travel for docs: See how your BRD has evolved. Useful for those “Wait, who changed that?” situations.

We’ve built Slite to be the kind of tool we’d want to use ourselves. It’s designed to make your life easier, so you can focus on the important stuff - like nailing those project requirements.

Whether you’re a BRD newbie or a seasoned pro, good tools can help you create clearer, more effective documents. And that means smoother projects and happier teams. Sign up for Slite today. Try us out!