Functional Requirements and Specifications: A Quick Tutorial

Summary

The script explores the importance of functional specifications in IT projects, explaining their purpose to define software requirements. It discusses various formats like FRDs, SRSs, BRDs, Use Cases, and User Stories, emphasizing their role in aligning business and IT objectives. The speaker shares insights on creating concise documents for better alignment and provides a free use case template for effective requirement documentation.

Takeaways

• 📝 A functional specification is a document that defines the requirements to be implemented by a software solution.
• 🔍 It is created to align business needs with IT solutions, often involving business process changes, organizational changes, or configuration adjustments.
• 📚 Common formats for functional specifications include Functional Requirements Document (FRD), System Requirements Specification (SRS), and Business Requirements Document (BRD).
• 📋 Use Cases and User Stories are alternative formats that provide context and clarity to functional requirements, reducing ambiguity.
• 🤝 The functional specification serves as a bridge between business and IT stakeholders, ensuring mutual understanding and agreement on system capabilities.
• 📈 The document is crucial for confirming that the software meets the business users' needs and is feasible and implementable from a technical perspective.
• 📉 Early in a career, functional specifications might be extensive, but as a business analyst matures, the preference often shifts towards shorter, more focused documents.
• 📝 'System shall' statements in FRDs, SRSs, or BRDs outline the functionalities required but can lack context, making them harder to implement and test.
• 🔗 Use Cases provide a step-by-step guide that embeds functional requirements within user actions, aiding in clarity and reducing scope creep.
• 👤 User Stories succinctly capture user goals, functional requirements, and business benefits in a single statement, facilitating easy planning and alignment.
• 🛠 The choice of specification format should consider organizational standards and stakeholder preferences to avoid future issues.
• 🔑 Use case thinking, often paired with wireframes, is essential for uncovering detailed requirements and ensuring that no critical needs are overlooked.

Q & A

What is a functional specification in the context of an IT project?

A functional specification is a document that defines the requirements to be implemented by the software solution in an IT project.

Why is creating a functional specification important for business analysts?

Creating a functional specification is important to capture what the software needs to do to support a business user, ensuring alignment between business and IT stakeholders.

What are some common formats for a functional specification document?

Common formats include the Functional Requirements Document (FRD), System Requirements Specification (SRS), Business Requirements Document (BRD), Use Cases, and User Stories.

How do business process changes relate to functional specifications?

While not all solutions are software-based, business process changes can be part of the requirements defined in a functional specification, especially when they are supported by IT systems.

What is the purpose of the 'system shall' statements in a functional specification?

'System shall' statements are used to represent functional requirements, typically organized in tables by feature with a priority identified.

How do use cases differ from 'system shall' statements in capturing functional requirements?

Use cases provide a series of steps in the context of user actions, which helps eliminate ambiguity and provides context that is often missing in 'system shall' statements.

What is the syntax for capturing functional requirements in a User Story?

The syntax for a User Story is 'As a {user}, I can {do something} so that {I receive some benefit}.' This format captures user goals, functional requirements, and business benefits.

Why might a business analyst choose a shorter scope document over a longer one?

A shorter scope document can be more efficient to write and approve, consolidating overview sections with use cases or user stories to focus on the functional details.

What are the advantages and disadvantages of using system shall statements, use cases, and user stories?

System shall statements are easy to track but lack context. Use cases provide context but can expand in scope. User stories are concise and link goals and benefits but may lose the big picture if used in isolation.

How can a business analyst ensure they capture the right requirements in a functional specification?

By using use case thinking and corresponding wireframes, a business analyst can ensure they capture the right level of detail and discover requirements that might be missed otherwise.

What is the significance of the functional specification in aligning business and IT stakeholders?

The functional specification is the document that sits in the middle, holding everything together, and ensuring that both business and technical stakeholders confirm the requirements are what is needed and feasible.

Outlines

00:00

📝 Understanding Functional Specifications

This paragraph introduces the concept of a functional specification in the context of IT projects, emphasizing its importance for business analysts. It explains the purpose of such a document, which is to define the software requirements needed to solve a business problem. The paragraph also touches on the various formats a functional specification can take, such as the Functional Requirements Document, System Requirements Specification, and Business Requirements Document, among others. It highlights the significance of aligning business and IT through this document, which is reviewed and approved by both business and technical stakeholders to ensure the software meets the desired outcomes and is feasible to implement.

05:03

📚 Evolution of Documentation Formats

The speaker shares personal experiences with the evolution of documentation formats used in business analysis. Initially, they created extensive software requirements specifications, which were comprehensive but cumbersome and time-consuming. Over time, they moved towards more concise documents that combined overview sections with use cases to delve into functional details. The paragraph also mentions the use of user stories in agile projects as an alternative format. The essence of the functional specification, regardless of format, is to create alignment between business users' needs and IT's capabilities. The speaker also discusses the representation of functional requirements in different documents, such as system shall statements, use cases, and user stories, providing examples for each.

10:53

🔍 Pros and Cons of Requirement Capture Methods

This paragraph delves into the advantages and disadvantages of different methods for capturing functional requirements. System shall statements are easy to track but lack context, making them difficult to implement and test. Use cases provide context, which helps in getting the right requirements approved and implemented, but they can become too broad or lose individual requirements within larger documents. User stories effectively link business benefits, functionality, and user goals, facilitating easy planning, but they can lose the big picture if not used in conjunction with other documentation. The choice of approach is often dictated by organizational standards, but when absent, it's important to consult with stakeholders. The paragraph concludes with the importance of use case thinking and corresponding wireframes for capturing the right level of detail in software requirements.

Keywords

💡Functional Specification

A functional specification is a document that outlines the specific functions and features a software system should have. It is integral to the IT project development process, ensuring that the software meets the business needs. In the video, it's described as a tool to define requirements for the software solution, and it's often reviewed and approved by both business and technical stakeholders to confirm alignment between business needs and technical feasibility.

💡Business Analyst

A business analyst is a professional who acts as a bridge between stakeholders and IT teams, ensuring that the project meets the business requirements. In the script, the role of a business analyst is highlighted in the context of creating functional specifications and aligning business needs with IT capabilities.

💡Software Requirements

Software requirements are the detailed descriptions of what the software should do to meet the business needs. They are a subset of the functional specification and are crucial for guiding the development process. The video mentions that these requirements can be documented in various formats, such as 'system shall' statements or use cases.

💡Use Cases

Use cases are a form of behavioral requirements that describe how a system should respond to a set of inputs, typically from a user. They provide context to functional requirements, helping to eliminate ambiguity. The script uses 'use cases' to illustrate how functional requirements can be organized into a series of user actions and system responses.

💡User Stories

User stories are a way of capturing product features from an end-user perspective, typically following the format 'As a [user], I want [feature] so that [benefit].' They are used in agile development methodologies to focus on user goals and benefits. The video script provides examples of user stories to demonstrate how they can capture functional requirements concisely.

💡System Shall Statements

System shall statements are a common way of expressing functional requirements, typically starting with 'The system shall...'. They are used to clearly define what the system must do. In the script, these statements are mentioned as a way to organize functional requirements in tables within a functional requirements document.

💡Agile Projects

Agile projects refer to a flexible approach to project management and product development that involves iterative progress through small, incremental builds. The script mentions that in some agile projects, user stories are the preferred format for capturing functional requirements, emphasizing the iterative and user-focused nature of agile methodologies.

💡Technical Stakeholders

Technical stakeholders are individuals or groups who have a technical interest in the project, often including developers, engineers, and IT professionals. They are important in the review and approval process of functional specifications to confirm that the requirements are feasible and implementable, as mentioned in the script.

💡Business Process Change

A business process change refers to the modification or improvement of the way a business operates to achieve better efficiency or outcomes. The script notes that while functional specifications are often associated with software, they can also involve changes to business processes, organizational structures, or configuration adjustments.

💡Requirements Management Systems

Requirements management systems are tools used to track, organize, and manage requirements throughout the project lifecycle. The script mentions these systems in the context of tracking 'system shall' statements, indicating their importance in maintaining clear visibility of project requirements.

💡Wireframes

Wireframes are simplified, schematic representations of a user interface that guide the design and layout of a system. The script suggests that wireframes, along with use case thinking, can help in discovering requirements that might be missed and in achieving the right level of detail in software requirements.

Highlights

A functional specification is essential for defining software requirements in an IT project.

Business solutions can involve changes beyond software, like business processes or organizational adjustments.

Functional specifications are crucial for aligning IT solutions with business needs.

Different formats for functional specifications exist, including FRD, SRS, BRD, Use Cases, and User Stories.

Functional specifications bridge the gap between business and technical stakeholders.

Early career projects may involve lengthy software requirements specifications.

Mature business analysts may opt for shorter, more focused functional specification documents.

Use Cases provide context to functional requirements, reducing ambiguity.

User Stories capture user goals, functional requirements, and business benefits in a concise statement.

System shall statements are easy to track but can lack context for implementation.

Use Cases can expand in scope, potentially misaligning with business goals.

User stories facilitate easy planning but may lose the big picture if focused on alone.

Organizational standards often dictate the approach to functional specification documentation.

Engaging with stakeholders is key to defining the functional specification format.

Use case thinking, with wireframes, helps in detailing software requirements effectively.

The functional specification is a moment of true alignment between business and IT.

Bridging the Gap teaches use cases as a foundational skill for business analysts.

A free use case template is offered to help business analysts get started with documentation.

Transcripts

If you find yourself in a business  analyst role on an IT project, it’s  

likely that at some point you’ll need to  create a functional specification – and  

these can take many different forms depending on  the methodologies in place at your organization.  

But what is a functional specification? Why  do you create a functional specification? And,  

perhaps more importantly, what  goes into a document like this?

The purpose of a functional specification is  to define the requirements to be implemented  

by the software solution. Now, as business  analysts, not all aspects of our solutions  

are software-based. A perfectly legitimate  solution to a business problem could involve  

a business process change, organizational  change, or even a configuration adjustment.

But since so much of business today  is supported directly by IT systems,  

many times solving a problem means  upgrading or building new software…and  

that means specifying functional requirements. 

Depending on your methodology and business  analysis practices, a functional specification  

can come in a variety of different formats.  A few of the most common formats are:

Functional Requirements Document System Requirements Specification 

Business Requirements Document (contrary  to the name, they commonly do not  

include only business requirements but  also functional, software requirements) 

Use Cases and User Stories, which is  what we teach at Bridging the Gap.

Whatever template is in place at  your organization, the purpose of the  

functional specification is to capture what the  software needs to do to support a business user.  

Often it is reviewed and approved by  both business and technical stakeholders.  

The business users confirm that yes, this is what  they really want the system to do. The technical  

users confirm that, yes, these requirements  are feasible, implementable, and testable. 

The functional spec is the moment of true  alignment between business and IT. Other  

documents, such as business process models and  business needs assessments might be primarily  

reviewed by business stakeholders. More technical  documents such as technical design specifications,  

are often primarily reviewed by BAs,  QAs,  and technical stakeholders.

It’s the functional spec that sits in  the middle and holds everything together.

Early in my career I tended to create 50+  

page software requirements specifications which  included information about the project,  

project team, open issues, environment,  assumptions, dependencies, constraints,  

key dates, business model, data requirements,  and, finally, the functional requirements. (The  

functional requirements typically took up all  but 10-15 pages of these long documents.) These  

documents were thorough, but they were heavy  and took entirely too long to write and approve.

As I matured as a business analyst, I  gravitated towards a shorter scope document  

that consolidated many of the overview sections  in my earlier documents along with a set of use  

cases to drill into the functional details.  I’ve also been on a few agile projects  

where user stories were the preferred format.

Whatever the format, my focus was creating  alignment between what the business users  

wanted and needed the system to do and what IT was  prepared to build for them. And that’s really the  

essence of the functional spec. I’ll share examples of a use  

case and user stories. But first, let’s discuss  the longer documents – FRDs, SRSs, or BRDs.

In a FRD, SRS, or BRD, functional requirements  are typically represented as “system shall”  

statements. You’ll typically have a list of  system shalls, often organized in tables by  

feature with a priority identified. For  example, “The system shall enable course  

participants to submit a question.” or “The  system shall enable the course instructor to  

view all course participant questions.” In a Use Case,  

functional requirements are typically  represented as a series of steps. The use  

case puts a collection of functional requirements  into the context of user action, which typically  

eliminates a lot of ambiguity that makes it’s way  into an out-of context list of system shalls. For  

example, “Course participant selects to  submit a question. Course participant provides  

their name, selects a question category,  

and provides a textual question. System sends  an email to the course instructor containing the  

information provided by the course participant.” You can use the link below to download my use case  

template – it’s absolutely free. In a User Story, functional requirements are  

typically captured in the following syntax:  “As a {user}, I can {do something} so  

that {I receive some benefit}. When used  appropriately, the user story syntax is  

brilliant at capturing user goals, functional  requirements, and business benefits altogether in  

one concise statement.  For example, “As a course  participant, I can submit a question so that I  

get my concerns about the course materials  addressed” and “As a course instructor, I  

can view all course participant questions  so I can respond in a timely manner.”

Each of these ways of capturing functional  requirements has its pros and cons.

System shall statements are easy to  track in requirements management systems  

but difficult to implement and test as  they are often presented without context. 

Use cases provide great context which helps  get the right functional requirements approved  

and implemented, but it’s also easy for  the scope inside a use case expand while  

meeting user goals (which may not align to  business goals) or for individual requirements  

to get lost in larger use case documents. User stories link together business benefits,  

functionality, and user goals and are often at the  right level of detail to facilitate easy planning,  

but it’s easy to lose track of the big  picture if you focus on user stories alone.

The approach you choose will often be  dictated by organizational standards.  

In the absence of standards, you get to define  your own. It’s a good idea to start by asking the  

business and technical stakeholders what they’d  like to see in a spec, as this can help you avoid  

a lot of issues down the line. Believe me, I  know from some personal, painful experiences. 

And no matter what specification format you use  to document your functional requirements, ensuring  

you get the right requirements requires use case  thinking, often with corresponding wireframes.

When you think in terms of the interchange  of a user and system interaction,  

you will get to the right level of  detail in your software requirements  

and often discover requirements that  otherwise will often get missed.

This is why we teach use cases as a core  foundational skill at Bridging the Gap.

And if you want to learn more  about that and get started  

right away, again you can download my  absolutely free use case template below.

We build our profession one business analyst  at a time, and success starts with you.