Business Decision Records (BDRs): A New Tool for Strategic Clarity

While designing and developing software, we have a great tool that helps us keep track of why we make certain decisions: Architectural Decision Records, or ADRs. These are documents that capture the details of why a particular architectural path was chosen along with the trade offs. As an architect myself, I've seen firsthand the benefits in terms of clarity, accountability and traceability ADRs bring to technology projects. But what about the decisions we make in business? This brings us to an innovative idea: Business Decision Records (BDRs).

What are BDRs?

Business Decision Records are a proposed method for documenting critical business decisions. Like their architectural counterparts, BDRs would record not only what decision was made, but why it was made and any alternatives that were considered. This practice isn't just about keeping a log; it's about creating a memory for an organization's strategic moves.

Why BDRs?

Imagine you're part of a company that decided not to pursue a market opportunity because, at the time, there wasn't enough customer interest. Fast forward five years, now the market landscape has changed. Customer interest has spiked, and you wonder, "Why didn't we explore this before?". Or lets say a new executive is questioning why the company does not have a "footprint" on certain industry business processes. Without a detailed record, the rationale behind past decisions can be partial, misunderstood, or lost after many organizational changes.

BDRs serve several key purposes:

1. Capability Tracking: Just as ADRs help track technology choices and their impacts over time, BDRs can do the same for business capabilities. They enable organizations to revisit past decisions with a clear understanding of the context, rationale, and considerations. Searching a BDR log for specific keywords related to capabilities can retrieve all business decisions associated with that capability.
2. Strengthening Organizational Memory: By systematically documenting the thought process behind strategic decisions, organizations can build upon previous insights. This documentation can stem from the Business Architectures design (of Solution Architectures), introducing a holistic governance around business documenting practices.
3. Facilitating Onboarding and Team Alignment: For new team members, BDRs can be a great resource to quickly get up to speed on the strategic decisions that have shaped the current business "footprint" on the overall industry landscape.

Implementing BDRs

Starting with BDRs doesn't have to be complicated. Here are some ideas to consider:

1. Identify Key Decisions: Not every decision requires a BDR. Focus on those that have long-term implications for your business.
2. Keep Structured Records: For each decision, document the context, the options considered, the decision made, and the rationale behind it. Also, note any assumptions. Providing templates to business teams will help with consistency.
3. Review and Update: Business landscapes change, and so do the relevances of past decisions. Regularly review and and supersede your BDRs to reflect new insights or changes in the business context. (Just like their architectural counterparts, BDRs are also immutable, so we cannot simply update them. We create a new version, with a new context and supersede the previous version)
4. Socialize and Discuss: Ensure BDRs are easily accessible by utilizing user-friendly tools, making them available and searchable for all relevant stakeholders. Use them as tools for discussion, brain storming and alignment in strategic sessions.

Conclusion

The introduction of Business Decision Records could mark a significant step forward in how organizations track, learn from, and build upon their past decisions. While this concept is inspired from the tech world, its application could have far-reaching implications for business strategy and organizational learning.

By adopting BDRs, companies can create a structured repository (or log) of knowledge, while enhancing decision making and alignment across all levels of the organization. It's a simple idea, but I believe it has the potential to improve how businesses navigate their complex landscapes..