Whats a BRD and how it helps project delivery?

The BRD, not the BRP if you read this from NL… :)

There might be few reasons you want to read this:

1. To give AI proper instructions to build stuff for you:

Lately I was tinkering with vibe coding tools.

We can now do cool and functional apps by providing a cool initial prompt.

How to make sure that the LLM will have the proper context to have from the very beginning the best possible app or its best first iteration?

2. To make sure you build whats required

If you are part of AIOps / AI|BI or whatever domain specific projects, how to make sure that stakeholders expectations are captured and have everyone happy during the delivery?

3. To make sure that AI builds what you want

Why these are important

You might think that spending time on filling some docs is just bike-shedding, a waste of time.

Yet actually, when working cross-functionally with several teams, they are very beneficial to track the stream of value and how resources are utilized.

Trust me, keep this handy:

1. BRD (Business Requirements Document)

   • Who defines it: Primarily the Business Analyst (BA). They work closely with Business Stakeholders, Project Sponsors, and sometimes Product Owners/Managers.
   • Why them: BAs are skilled at understanding business needs, translating them into clear requirements, and acting as a bridge between the business side and the technical teams. Business stakeholders provide the “why” and the overall vision.

2. PRD (Product Requirements Document)

   • Who defines it: The Product Manager or Product Owner.
   • Why them: Product Managers are responsible for the success of the product. They take the high-level business needs from the BRD (or directly from business strategy) and define the specific features, user experiences, and functionalities that the product will have to meet those needs. They act as the voice of the user and the market. They collaborate extensively with designers and development leads.

3. FRD (Functional Requirements Document)

   • Who defines it: Often the Business Analyst or Systems Analyst, sometimes in conjunction with a Technical Lead or Solution Architect.
   • Why them: The FRD delves into the technical “how.” BAs and Systems Analysts have the analytical skills to break down product features into granular system behaviors. Technical leads and architects ensure that the detailed requirements are technically feasible and align with the overall system design. In many modern agile teams, detailed functional requirements might be captured as elaborated user stories and acceptance criteria directly in the development backlog, with the Development Team itself defining the fine-grained “how” during sprint planning.

4. RACI Matrix

   • Who defines it: The Project Manager or Program Manager. They typically create this in collaboration with the team leads and key stakeholders who will be involved in the tasks.
   • Why them: The Project Manager is responsible for project planning, execution, and ensuring clear communication and accountability. The RACI matrix is a crucial tool for this.

When is Project Estimation Done?

Project estimation is an ongoing and iterative process throughout the project lifecycle, but it becomes more refined and accurate as more information becomes available.

Here’s how estimation typically progresses:

1. Initiation Phase (Very Early - BRD Stage):

   • Type of Estimate: Rough Order of Magnitude (ROM) estimate. This is a very high-level, preliminary estimate, often given as a wide range (e.g., -25% to +75% accuracy).
   • Purpose: To determine the project’s feasibility and secure initial budget approval. It answers the question: “Is this even worth pursuing?”
   • Who does it: Often senior management, project sponsors, or experienced project managers based on similar past projects or industry benchmarks. It’s usually based on the high-level scope outlined in a preliminary BRD or even just a project idea.

2. Planning Phase (After BRD, during PRD/FRD definition):

   • Type of Estimate: Estimates become more definitive and detailed, narrowing the range (e.g., -10% to +25% or even -5% to +10% as more details emerge). This is where more robust techniques like analogous estimating (comparing to similar past projects), parametric estimating (using historical data and statistical relationships), and eventually bottom-up estimating come into play.
   • Purpose: To create a detailed project budget, schedule, and resource plan. This is when the development team starts to weigh in more heavily.
   • Who does it:
     • Project Manager: Facilitates the estimation process, gathers input, and consolidates estimates.
     • Product Manager/Owner: Provides clarity on features and priorities from the PRD.
     • Development Team (Architects, Leads, Developers): Crucially, the people who will actually do the work provide the most accurate task-level estimates for effort and duration. They break down the FRD (or detailed user stories) into individual tasks.
     • QA/Testing Team: Estimates time for testing cycles.
     • Other Teams (Design, Marketing, etc.): Provide estimates for their respective contributions.

3. Execution and Monitoring Phases (Throughout Development):

   • Type of Estimate: Estimates are continuously refined and updated through a process called progressive elaboration. As work progresses and new information or challenges arise, estimates for remaining work are adjusted.
   • Purpose: To track progress, manage costs, forecast completion dates, and identify potential risks or deviations from the plan.
   • Who does it: The Project Manager, in collaboration with the Development Team and other relevant stakeholders, continuously monitors actuals against estimates and updates forecasts.

The BRD

Let’s try explaining a BRD in a slightly different way, focusing on its role as a project’s “constitution” or “foundational agreement”.

Explaining a BRD in Another Way: The Project’s “Constitution”

Imagine a project isn’t just about building something, but about setting up a mini-country. The Business Requirements Document (BRD) is like that country’s constitution.

• It defines the “Why”: Just as a constitution states the core values and reasons for a country’s existence, the BRD explains why this project is happening. What problem are we solving? What opportunity are we seizing? What are the ultimate business goals?
• It sets the “What”: A constitution outlines the fundamental rights and responsibilities of its citizens and government. Similarly, the BRD clearly defines what the business needs from this project to achieve its “why.” It specifies the high-level capabilities, features, and functions that are essential from a business perspective.
• It establishes the “Who” and their “Expectations”: A constitution identifies the people it governs and their expected roles. The BRD clarifies who the key stakeholders are (users, business owners, etc.) and what their expectations are for the project’s outcome. It ensures everyone is on the same page about the desired results.
• It’s the “Source of Truth” for Business: Just as people refer to a constitution to understand the foundational laws, the BRD serves as the primary reference point for all business-related aspects of the project. If there’s a disagreement about what the business truly needs, the BRD provides the answer.
• It’s a “Living Document”: No constitution is written once and forgotten. It’s amended, interpreted, and sometimes even rewritten as societies evolve. Similarly, a BRD isn’t static. As the project progresses and business understanding refines, the BRD is reviewed and updated to ensure it always reflects the current, agreed-upon business needs.
• It’s for the “Policy Makers”: While developers might be the “engineers” building the infrastructure, the BRD is primarily for the “policy makers” – the business leaders, stakeholders, and end-users – to ensure the project aligns with strategic objectives.

In essence, the BRD ensures that everyone involved in the project, especially those on the business side, agrees on the fundamental purpose and essential outcomes before diving into the technical specifics of how to build it. It prevents building the right thing the wrong way, or worse, building the wrong thing entirely.

Questions a BRD Has to Reply To:

Think of the BRD as an exhaustive interview of the business, where it provides answers to critical questions that drive the project. Here are the main questions a BRD must answer:

1. What is the Problem or Opportunity?

   • What specific business pain point are we trying to alleviate?
   • What market opportunity are we aiming to capitalize on?
   • Why is this project necessary now?

2. What are the Business Objectives?

   • What measurable goals will this project achieve for the business? (e.g., “Increase customer retention by 15%”, “Reduce operational costs by 10%”, “Enter a new market segment”)
   • How will success be defined and measured from a business perspective?

3. What is the Scope of the Project (from a Business Perspective)?

   • What business functions or processes are included in this project?
   • What business functions or processes are excluded from this project?
   • What are the high-level features or capabilities the business needs? (e.g., “Ability for customers to track orders online,” “Automated invoice generation”)

4. Who are the Stakeholders and What are Their Needs/Expectations?

   • Who are the primary users of the system or beneficiaries of the project? (e.g., customers, sales team, finance department)
   • What are their core business requirements and expectations from the solution?
   • What are their high-level use cases or scenarios?

5. What are the Key Business Processes Involved/Affected?

   • How does the business currently operate in the area being addressed?
   • How will these business processes change or improve with the new solution?
   • Are there any workflows or data flows that need to be understood?

6. What are the High-Level Requirements (Business-Centric)?

   • What must the solution do to meet the business objectives? (These are often expressed as “The system must enable X,” or “Users must be able to Y.”)
   • Are there any non-functional business requirements like regulatory compliance, security needs, or specific performance expectations from a business standpoint?

7. What are the Assumptions and Constraints?

   • What assumptions are being made about resources, technology, timelines, or market conditions that could impact the project’s success?
   • What are the known limitations or constraints that the project must operate within (e.g., budget, existing systems, regulatory frameworks)?

8. What are the Key Deliverables and Success Metrics?

   • What tangible outputs are expected from the project from a business perspective?
   • How will the business measure the success of the project once it’s implemented?

By answering these questions comprehensively and clearly, the BRD provides a solid foundation for all subsequent project phases, ensuring that everyone is aligned on the business’s ultimate goals and needs.

The FRD

You’re right to ask about the Functional Requirements Document (FRD) next, as it’s the natural follow-up to the BRD in the project lifecycle. If the BRD is the “What” and the “Why” from a business perspective, the FRD is the “How” from a system perspective.

Explaining a Functional Requirements Document (FRD) in Another Way: The System’s “Instruction Manual”

If the Business Requirements Document (BRD) is like the constitution of a project’s “country,” then the Functional Requirements Document (FRD) is the detailed instruction manual for its operating systems and machinery.

Imagine our project “country” from the BRD. Now, the FRD isn’t about why the country exists or what its citizens generally need. Instead, it’s about:

• The “Buttons and Levers”: It describes every specific button, lever, switch, and function within the system. If the BRD says “Citizens need to be able to vote,” the FRD explains exactly how that voting system works: “A user logs in, clicks ‘Vote Now,’ selects a candidate from a dropdown list, clicks ‘Confirm Selection,’ and receives a confirmation message.”
• The “Rules of Operation”: It outlines the precise rules and logic for how the system behaves under different conditions. “If a user enters an invalid password three times, their account will be locked for 15 minutes.”
• The “Blueprint for Engineers”: This document is specifically crafted for the people who will build the system – the developers, engineers, and IT specialists. It gives them the exact specifications they need to design, code, and test the software. They don’t need to understand the broad business strategy from this document; they need to know what to build.
• The “Test Script Baseline”: Because it details every function, the FRD also becomes the primary document for Quality Assurance (QA) testers. They use it to create test cases, verifying that the system performs exactly as specified in the FRD.
• The “Granular Detail”: While the BRD speaks in broad strokes (“Automate invoice generation”), the FRD drills down: “The system shall generate PDF invoices, including client name, address, itemized list, quantity, unit price, subtotal, tax (at 7%), and grand total. Invoices shall be numbered sequentially…”

In short, the FRD translates the high-level business needs articulated in the BRD into concrete, verifiable, and detailed system functionalities. It answers the question: “Given what the business needs, how will the system behave to deliver that?”

Questions a FRD Has to Reply To:

The FRD dives into the technical specifics of how the system will function to meet the business requirements. It answers questions that are critical for developers, designers, and testers.

1. What exactly will the system do?

   • What are the specific features and functionalities that the system will provide?
   • What are the detailed steps for each user interaction or system process? (e.g., “User clicks X button, System displays Y screen, User enters Z data.”)

2. How will the system respond to specific inputs?

   • What are the exact inputs (user actions, data) the system will accept?
   • What is the precise output or response for each input? (e.g., “If User enters text, System validates for alphanumeric characters only. If invalid, error message ‘Invalid characters’ is displayed.”)

3. What are the detailed business rules the system must enforce?

   • What calculations, validations, or logic must the system apply? (e.g., “Discount of 10% is applied to orders over $500,” “Minimum password length is 8 characters, including one uppercase, one number, and one special character.”)

4. How will data be handled within the system?

   • What specific data inputs will the system process?
   • What data will the system store, and what are its attributes? (e.g., “User ID will be a unique integer, Email will be a string, max 255 chars.”)
   • How will data be manipulated, retrieved, and presented?

5. How will the system interact with other systems?

   • What are the detailed integration points with existing or external systems?
   • What specific data will be exchanged, and in what format? (e.g., “System will send order details via API call to fulfillment system in JSON format.”)

6. What are the specific non-functional requirements (from a system perspective)?

   • Performance: How fast must the system respond? (e.g., “Page load time under 2 seconds for 90% of requests.”)
   • Security: What specific security measures must be implemented? (e.g., “All user data must be encrypted at rest and in transit,” “Role-based access control must be enforced.”)
   • Usability: What are the detailed UI/UX requirements? (e.g., “Navigation menu must be visible on all pages,” “Error messages must be clear and actionable.”)
   • Reliability: What is the required uptime or error tolerance? (e.g., “System uptime must be 99.9%.”)
   • Scalability: How many concurrent users or transactions must the system support?
   • Maintainability: Are there specific technical standards or architectures to follow?

7. What are the error handling and recovery procedures?

   • What happens when an error occurs? (e.g., “System logs error and displays user-friendly message,” “Administrator is notified via email.”)
   • How does the system recover from failures?

By meticulously answering these questions, the FRD provides the precise specifications needed for development, ensuring that the final system aligns perfectly with the detailed expectations of the project team and, ultimately, fulfills the higher-level business needs outlined in the BRD.

The BRD and FRD with the SDLC

The Business Requirements Document (BRD) and Functional Requirements Document (FRD) are foundational artifacts within the Software Development Life Cycle (SDLC). The SDLC is a structured process that software development teams use to plan, design, develop, test, and deploy software. It provides a roadmap for the entire project, from conception to maintenance.

Here’s how the BRD and FRD relate to the typical phases of the SDLC:

1. Requirements Gathering and Analysis Phase

This is typically the first and most crucial phase of the SDLC, where the BRD and FRD play their most significant roles.

• BRD’s Role: This phase starts with the business problem or opportunity. The BRD is the primary output of the initial requirements gathering and analysis activities. Business analysts work closely with stakeholders to understand the “what” and “why” from a business perspective. They document:

  • The overarching business goals.
  • The project vision and scope (at a high level).
  • The problems to be solved or opportunities to be seized.
  • The high-level business requirements.
  • Stakeholder expectations.
  • Key business processes.

  The BRD ensures that everyone, especially business stakeholders, agrees on the project’s purpose and the value it aims to deliver. It acts as the anchor for the entire project.

• FRD’s Role: Once the high-level business needs are understood and documented in the BRD, the team moves to define how the system will address these needs. The FRD is often created in the later part of the Requirements Analysis phase or the early part of the Design phase. It elaborates on the BRD’s high-level business requirements by translating them into detailed system functionalities. This involves:

  • Breaking down high-level business requirements into specific, actionable functional requirements.
  • Defining system behavior, inputs, outputs, and rules.
  • Specifying non-functional requirements (performance, security, usability, etc.) from a technical perspective.
  • Often incorporating use cases, user stories, process flows, and wireframes to illustrate functionality.

  The FRD acts as the bridge between the business needs and the technical design, ensuring that developers have a clear blueprint for what to build.

2. Design Phase

Once the requirements (both business and functional) are clearly defined, the project moves into the design phase.

• BRD/FRD’s Role: The FRD is the direct input to the Design phase. System architects and designers use the detailed functional requirements outlined in the FRD to:

  • Develop the system architecture.
  • Design the database structure.
  • Create detailed user interface designs.
  • Plan integrations with other systems.

  While the BRD provides the overall context and business goals, the FRD gives the granular detail needed for technical design. Any design decision made here must trace back to a functional requirement in the FRD, which in turn traces back to a business requirement in the BRD.

3. Development/Implementation Phase

This is where the actual coding happens.

• FRD’s Role: The FRD serves as the primary specification document for developers. They refer to it to understand exactly what functionalities to code, how the system should behave, and what rules to implement. A well-written FRD minimizes assumptions and reduces rework during development.

4. Testing Phase

Once development is complete, the software is rigorously tested.

• FRD’s Role: The FRD is crucial for Quality Assurance (QA) teams. Test cases are directly derived from the functional requirements. Testers verify that each function specified in the FRD works correctly and meets its defined criteria.
• BRD’s Role: While the FRD guides functional testing, the BRD is referenced during User Acceptance Testing (UAT). UAT is where business stakeholders verify that the built solution actually addresses their original business needs and objectives. They check if the “what” (from the BRD) has been successfully delivered by the “how” (from the FRD).

5. Deployment and Maintenance Phases

• BRD/FRD’s Role: While not actively created or updated in these phases as much, both documents serve as important reference materials.
  • For deployment, they provide context for operational teams on the system’s purpose and functionality.
  • For maintenance and future enhancements, they serve as historical records of the system’s initial requirements and design. If new features are requested or bugs need fixing, these documents help understand the original intent and impact of changes.

Interdependence and Evolution

It’s important to remember that the BRD and FRD are not created in isolation. They are interdependent and often iterative, especially in agile methodologies:

• The BRD comes first, setting the high-level vision.
• The FRD elaborates on the BRD, translating business needs into system specifics.
• Changes in the BRD (due to evolving business needs) will necessitate changes in the FRD.
• Conversely, technical feasibility identified during FRD creation or design might lead to adjustments in the BRD.

In essence, the BRD and FRD are critical communication tools that guide a project through the SDLC, ensuring that the final software product effectively addresses the initial business problem.

Conclusions

How a BRD, FRD, RACI, and Project Charter relate to each other in the context of project management.

They are all crucial documents, but they serve different purposes and are typically developed at different stages of a project lifecycle.

• Project Charter: The Foundation

  • What it is: The Project Charter is the very first document. It formally authorizes the project, defines its high-level objectives, scope, stakeholders, and assigns the project manager. It’s a foundational document that provides the “why” and the initial “what” of the project.
  • Relationship to others: It sets the stage for everything else. Without a Project Charter, you wouldn’t typically move on to detailed requirements or role assignments. It provides the initial mandate and context for the BRD, FRD, and RACI.

• Business Requirements Document (BRD): The “What” from a Business Perspective

  • What it is: The BRD comes after the Project Charter. It elaborates on the business needs and objectives outlined in the charter. It describes what the business wants to achieve, the problems it wants to solve, and the high-level functionalities required, often without specifying how those functionalities will be technically implemented. It focuses on the “why” and “what” from a business user’s perspective.
  • Relationship to others:
    • Relates to Project Charter: The BRD expands upon the high-level objectives and scope defined in the Project Charter. It provides more detail on the business problems and opportunities that the project aims to address.
    • Leads to FRD: The BRD serves as the primary input for the FRD. The functional requirements defined in the FRD directly flow from the business requirements outlined in the BRD.
    • Informs RACI: While not directly linked, the business processes and stakeholders identified in the BRD can help in understanding who needs to be involved in various aspects of the project, which can then feed into the RACI matrix.

• Functional Requirements Document (FRD): The “How” (from a Functional Perspective)

  • What it is: The FRD builds directly upon the BRD. It translates the high-level business requirements into specific, detailed, and measurable functional requirements. It describes how the system or solution will behave, what features it will have, and how users will interact with it. It focuses on the “how” from a functional standpoint, often detailing user stories, use cases, and system functionalities.
  • Relationship to others:
    • Derives from BRD: The FRD is a direct descendant of the BRD. Every functional requirement in the FRD should be traceable back to a business requirement in the BRD.
    • Influences RACI: The specific functionalities and modules defined in the FRD can help in identifying the specific roles and responsibilities needed for development, testing, and deployment, which are then documented in the RACI matrix. For example, if a new reporting module is defined in the FRD, you’d need to identify who is Responsible for developing it, Accountable for its accuracy, etc.

• RACI Matrix: Defining Roles and Responsibilities

  • What it is: RACI stands for Responsible, Accountable, Consulted, and Informed. A RACI matrix is a tool used to clarify and define the roles and responsibilities of different stakeholders for various tasks or deliverables within a project. It identifies who does the work (Responsible), who is ultimately answerable (Accountable), who provides input (Consulted), and who needs to be kept in the loop (Informed).
  • Relationship to others:
    • Informed by all: The RACI matrix is informed by the information contained in all the other documents.
      • The Project Charter identifies key stakeholders and the Project Manager (who is often Accountable for the overall project).
      • The BRD and FRD describe the deliverables and processes that need to be completed. For each requirement or task outlined in these documents (e.g., “Develop User Authentication,” “Test Reporting Module”), the RACI matrix would assign the R, A, C, and I.
    • Supports execution: The RACI matrix doesn’t define what needs to be done (that’s the job of the BRD and FRD), but rather who is doing it, ensuring clear communication and accountability throughout the project lifecycle.

Here’s a simplified flow:

1. Project Charter: “We need to build a new online store to increase sales by 20%.” (High-level why and what)
2. BRD: “The online store needs to allow customers to browse products, add to cart, and checkout. It should support various payment methods and provide order tracking.” (Detailed business needs)
3. FRD: “The system shall allow users to search for products by keyword. The checkout process shall integrate with PayPal and credit card gateways. Users will receive email notifications for order status changes.” (Specific functional details)
4. RACI: For the task “Develop payment gateway integration,” John is Responsible, Sarah is Accountable, the Finance team is Consulted, and the Marketing team is Informed. (Who does what for the tasks defined by the FRD and BRD).

In essence, the Project Charter provides the overarching authorization and direction.

The BRD defines the business needs, which are then translated into specific functional requirements in the FRD.

The RACI matrix then clarifies who is responsible for executing the tasks and deliverables derived from these requirements, ensuring accountability and smooth collaboration throughout the project.

They are interconnected and sequentially refined, building upon each other to guide the project from concept to completion.

In a nutshell

The Project Charter is a crucial document that fits right at the very beginning of the project lifecycle, specifically during the Initiation Phase.

Here’s a breakdown of its purpose, who defines it, and where it sits in the typical project flow:

What is a Project Charter?

A Project Charter is a formal, high-level document that:

• Formally authorizes the existence of a project. It’s the “go-ahead” signal from the organization.
• Empowers the Project Manager to apply organizational resources to project activities. This is critical for giving the PM the authority they need.
• Provides a high-level overview of the project’s purpose, objectives, high-level scope, key deliverables, high-level timeline, high-level budget, major stakeholders, and potential high-level risks.
• Aligns stakeholders by providing a shared understanding of the project’s goals and boundaries right from the start.
• Serves as a reference point throughout the project lifecycle to ensure the project stays on track and within its authorized scope.

Who Defines the Project Charter?

The Project Manager typically drafts the Project Charter, but it’s done in close collaboration with the Project Sponsor (the person or group who provides the financial resources and support for the project) and other key stakeholders.

The Project Sponsor’s formal approval and signature on the Project Charter are essential, as this signifies their commitment and grants the Project Manager the necessary authority.

Where Does it Fit in the Project Lifecycle?

The Project Charter comes before the detailed planning and requirements gathering (like the BRD, PRD, FRD).

Here’s the refined order:

1. Project Initiation Phase:

   • Business Case/Feasibility Study: (Often precedes the charter) A document that justifies the project from a business perspective, outlining the problem, opportunities, and potential benefits. This feeds into the charter.
   • Project Charter: This is the foundational document created here. It officially launches the project, defines its high-level parameters, and authorizes the Project Manager.

2. Project Planning Phase:

   • BRD (Business Requirements Document): Built upon the high-level needs identified in the charter and business case, this details the business problems and high-level solutions.
   • PRD (Product Requirements Document): Translates the business needs into specific product features and user requirements.
   • FRD (Functional Requirements Document): Details the technical “how-to” for specific system functions.
   • Project Management Plan: This is the comprehensive plan that includes detailed scope, schedule, budget, resource plan, risk management plan, communication plan, quality plan, and other subsidiary plans. The project charter provides the high-level inputs for this detailed planning.
   • RACI Matrix: Developed as part of the planning phase, often within the Project Management Plan, to define roles and responsibilities for specific tasks identified during detailed planning.

3. Project Execution Phase

4. Project Monitoring & Control Phase

5. Project Closure Phase

Think of it this way:

• The Project Charter is like getting permission and the initial funding to build a house, and agreeing on its general size and purpose (e.g., “We’re going to build a three-bedroom family home”).
• The BRD then clarifies why you need a three-bedroom family home (e.g., “Our growing family needs more space, and we want it to be energy-efficient”).
• The PRD details what features the house will have (e.g., “It will have an open-concept living area, a modern kitchen with an island, and a two-car garage”).
• The FRD goes into the specifics of how those features will be implemented (e.g., “The kitchen island will have a built-in sink with specific plumbing requirements, and the garage door will be controlled via an app”).
• The RACI defines who is responsible for pouring the foundation, framing the walls, installing the plumbing, etc.

The Project Charter acts as the mandate that gives life to the project, setting the stage for all the detailed work that follows.