Rules Describe the Operations- Business Rules OK! – Part 1

If you have ever worked for someone else then you probably know how frustrating it can be when your owner/boss is inconsistent with their demands. One minute it’s this, the next minute it’s that. You can’t make decisions about your job with confidence for fear of being balled out for doing the wrong thing. Your work suffers and you feel dispirited and less motivated to go to work every day. In other words, you become sub-optimally productive and subsequently get blamed by your boss for not using your initiative. Sound familiar?


Have you ever thought that you might be doing the same thing with your own staff? “Not me!” is the indignant reply. Then ask your staff one day and check the responses.


In your own business, the solution lies in formalising the very decisions you are already making. Formalising means writing down and publishing. Even at you’re worst you are using business rules; you’re just not using them consistently. It’s time to get some structure in there.


In a business-political sense, knowledge of business rules is a source of power. I constantly find staff who are unwilling to divulge how they do their work because they fear they no longer have a bargaining position on their jobs. So don’t be surprised if you have to really pry this sort of information out of people.


But owners tend to hoard information as much as staff do; so check yourself to see if you’re holding anything back. It’s often about delegation. Sometimes when you fear letting information out, you are actually constraining your business growth. Remember, your goal is to become a business owner rather than a business manager. Your objective therefore is to delegate everything! Business Rules are a key means of controlling your business from the outside.


What are Business Rules?


Business Rules describe the operations, definitions and constraints that apply to your business. Business rules describe in detail what a business can do—compared with strategy that talks about how.They can apply to people, processes, your business ethics and computing systems in your business.


Some Examples of Business Rules:


● Preferred Customers: people the boss likes, or people who spend over a certain amount per month. The customers are known as Influencers (read The Tipping Point)


● Preferred Customers Discount: 10%


● Order Error Discount: for example; a free dessert at a restaurant


● When to call the boss: when the customer won’t accept order error discount


● Business Units: definitions of profit centres within your organisation


● Head Office Allocations: a share percentage of HO costs among business units


● Pricing: all prices to end in 99c or $9


● Sales Labels: labels to show original price as crossed out, plus the new price in bold and the sales discount percentage


● Credit checks: when dealing with a repeat customer this is not required


● Credit Card Use Surcharge Visa: 3%


● Preferred suppliers: see supplier list preference indicator


● Supplier Payments Priority: inventory, essential services, and others


So that’s the theory of business rules. Next time I’ll show you some examples and explain how to implement business rules into your own business.


Graeme Stevens
CEO and Co-Founder
neXtep easy


neXtep Business Builder Community Pte Ltd
Singapore ACRA Business Registration Number: 201424522Z
80 Kitchener Road #09-09/10 Singapore 208539