Requirements Management 101: Processes, Plans, and Best Practices

A requirement is a single component that is necessary to complete a deliverable. All requirements represent a need, and every product or service includes several requirements.

The internationally recognized business analysis standard, Business Analysis Book of Knowledge (BABOK® Guide), Version 2.0, defines a requirement as follows:  

1. A condition or capability needed by a stakeholder to solve a problem or achieve an objective.
2. A condition or capability that must be met or possessed by a solution or solution component to satisfy a contract, standard, specification, or other formally imposed documents.
3. A documented representation of a condition or capability as in (1) or (2).

An assigned team identifies, gathers, and analyzes a project’s requirements to ensure the project is in line with business goals.

Requirements management is the formalized process used to meet customer and stakeholder needs. First, managers and analysts list the needs in a requirements management plan (RMP) document. Then they track and validate each requirement’s progress.

 Effective requirements management planning visualizes, organizes, and communicates a proposed project’s requirements. Typically, a business analyst develops the document, sometimes referred to as a business analysis plan. However, if the company has limited resources, a project or product manager is responsible for collecting, analyzing, refining, and prioritizing the requirements. 

Gerard Blokdyk, founder and CEO of The Art of Service, describes requirements management as the way to ensure “your organization assists project members with analysis and evaluation and with the preparation of recommendations for requirements of system improvements, optimization, development, and maintenance efforts.” 

Requirements management is most common in system engineering, but is also part of other disciplines, such as business analysis and project management. Blodijk identifies requirements management in “information systems architecture, networking, telecommunications, automation, communications protocols, electronic analysis, software, lifecycle management, software development methodologies, modeling and simulation, and disaster recovery.”

Requirements management involves five activities: collection, analysis, definition, prioritization, and validation. A business analyst leads the team in planning, tracking, and controlling the requirements. Once validated, a requirement might need maintenance or enhancement. 

As the analyst develops and executes the RMP, each requirement goes through the following activities:  

• Collection: Gather the proposed needs from customers, stakeholders, and internal departments.  
• Analysis: Review the proposed requirements and determine if they align with the business objectives and product goals. 
• Definition: Formally document and categorize each requirement. Define “complete” for each requirement.
• Prioritization: Order requirement execution based on the project schedule, release plan, or sprint.

• Validation: Track each requirement’s progress through completion and test it to make sure the product meets the client’s needs. 
• Maintenance: Schedule ongoing improvements or upkeep.  

You can find more detailed examples of what occurs during each activity below. 

Once obtained, it is helpful to itemize the requirement’s actions and deliverables on a checklist template, as in the example below.

A project manager or business analyst is responsible for requirements management. They lead a team that gathers the requirements from stakeholders and subject matter experts, and they own all stages of the process, including developing the requirements management plan. 

The primary owner is the business analyst, but teams might also include the following roles and responsibilities:

Every member of the requirements team is responsible for communicating updates and requirements changes. Additionally, the RMP document includes sections for details about the following activities, which both support the team’s effectiveness: 

• Baselining: The team documents baselines as a comparison tool between all or a subset of requirements over a select period. It is used as a common language when communicating changes. This baseline is not a one-time event but a snapshot of a moment. The team develops a baseline strategy by determining baselining guidelines, including the frequency, content, and revisions. 
• Change Control: This RMP section defines how the team communicates, manages, and controls requirement changes. It identifies the process owners on the change control board and the authorization levels when making changes.

Requirements management planning is a repeatable process during which the project team defines the approach and techniques they will use to carry out all requirements-related activities. It occurs during the development stage of the requirements management process. 

During this planning phase, the project manager works with stakeholders and subject matter experts to identify all requirements necessary in the RMP. They use this information to help manage the project scope. Additionally, the designated planners document their approach for identifying stakeholders, collecting artifacts, employing management tools, monitoring requirement progress, controlling changes, and reporting.

Requirements management activities occur in an ordered process cycle, including gathering, analyzing, defining, and prioritizing each requirement, and ending with requirement validation and maintenance. 

Below, we’ve defined each activity in more detail.

You write a requirements management plan at the same time as the project plan. The team discusses and documents all process-related activities for managing, tracking, and reporting the requirements, as well as strategizes the communication and change management. 

Once the plan is completed, you’ll have answers to the following questions: 

• Who is the end user for the product or service?
• Who is responsible for each requirements management activity?
• What is our approach to identifying, defining, and prioritizing requirements?
• What is our change management process? How will we communicate changes?
• How will we track, test, and monitor each requirement? 
• How will we determine which requirements to include?

The analyst collects and records the information into the requirements management plan, sequenced below. The RMP combines several documents into one location. Attach it to the project plan for larger projects.

1. Using a requirements management plan template, write the project’s general information, purpose, scope, and stakeholders. Refer to the project charter to find the information. 
2. Outline the tentative schedule and any document conventions. 
3. Determine the process the team will use to prepare the RMP. You might need to schedule meetings with the team to discuss the best methods. 
4. Specify the necessary methods or processes for each requirement activity (gather, analyze, define, prioritize, validate, trace, track, report, and maintain). 
5. Detail how you will share the information in a communication plan. 
6. Outline the procedure for requesting changes in a change management plan. 
7. Determine the authorization levels necessary for any change approvals. 
8. Attach additional supporting documents that clarify how you will gather, manage, analyze, define, and track the requirements, such as in a work breakdown structure, gap analysis, BPMN, or dashboard, or by using definition criteria. 
9. Review the document. Confirm the document specifies all procedures for the product or project. Double-check your organizational planning and activities by answering the following questions, provided by Blokdyk: 

• Are software tools used to improve efficiency in roadmaps, requirements management, and business planning?
• Look at identifying resource requirements management planning. Does the team have bandwidth to take on the outlined commitments, and will the document help you to make more informed decisions about the activities?
• Does the RMP define how changes will be identified?
• Does the RMP indicate that each requirement will be uniquely identified?
• Does the software group use the allocated requirements as a basis for software plans, work products, and activities?

Once you complete the requirements management plan, share it with stakeholders. That said, don’t assume stakeholders will read the plan. Instead, meet with each group to baseline and agree on the requirements before approval. 

Then put the plan into action. Establish and update traceability metrics to monitor each requirement. Follow through on the change management procedures outlined in the plan for any change requests. Document and report any compliance issues.

Download Requirement Management Plan Example Template
Microsoft Word | Google Docs

Use this requirements management plan example to get an idea of the data you need for an effective plan. It outlines the format for each activity and provides a framework to organize all necessary documents before presenting it for approval. 

A requirements management process includes four major activities: planning, development, verification, and change management. The sub-processes within each activity involve gathering, defining, documenting, and testing. Change management tracks and controls the requirements once implemented.

 Here is more info on each stage of the process:

• Requirements Planning: The team creates their approach to developing and executing the plan, which is reviewed and approved by stakeholders and sponsors. The team uses the information from this stage as the primary input to all other requirements processes. 
• Requirements Development: The team takes action on the approved plan by gathering, defining, and analyzing the requirements. 
• Requirements Verification: The team performs acceptance testing and validation to track and measure how the requirements are satisfied.  
• Requirement Change Management (RCM): This technique manages the change control system implementation and the changes. It identifies the change control board as the deciding body for procedures and change requests.

Requirement management metrics monitor how each requirement adds value. The team internally decides which metrics best monitor the project progress. The metrics ensure the end product satisfies the original vision. 

Here are common metrics that teams use: 

• Size: Document the number of requirements within a single project. Then compare the actual requirements completed from the estimated between iterations. 
• Traceability: Link the functional requirements to the product (i.e., between design and code). You should also track the percentage of traced requirements.
• Quality: Use inspection data to calculate the product’s efficiency and effectiveness.
• Stability: Track the number of change requests over the number that have been resolved to identify the relative stability of the requirement.
• Status: Monitor the completion percentage of each requirement. Common statuses are proposed, approved,  implemented, verified, deferred, deleted, or rejected. This metric helps developers and managers communicate, especially for developers working on multiple requirements.
• Change: Record the number of change requests.

Download Requirements Management Starter Kit

Use this starter kit to handle the planning, documentation, analysis, and maintenance needs of requirements management. These essential templates will help you take care of the data and information demands of requirements management and communicate effectively.

In this kit, you’ll find:

• A requirements management plan template for Microsoft Word to use alongside a project plan so that you can thoroughly document your approach and processes. 
• A requirements plan dashboard template for Excel to visualize and track the document’s completion progress.  
• A business requirements document (BRD) template for Microsoft Word to define your project components and critical business needs. 
• A requirements checklist template for Excel to account for and track each requirement’s status. 
• A requirements analysis template for Microsoft Word to document the project purpose, business drivers, and versioning.
• A requirements prioritization matrix template for Excel to evaluate and prioritize requirements, features, or use cases. 
• A functional specifications template for Microsoft Word to detail what the product or feature(s) will do for the user. Alternatively, view our roundup of functional specifications templates or technical specification templates.
• A requirements traceability matrix template for Excel to ensure each requirement meets customer needs. 

Need more templates to boost your requirement management activities? View our extended collection of free, customizable project requirements templates.

Requirements management is important because it ensures the end product meets customer needs. Requirements management integrates business goals with the team’s deliverables, and it boosts team productivity by reinforcing strong communication and clear procedures.

For every project, program, or portfolio, stakeholders must agree on what is essential. However, miscommunication is one of the most common influencers of failed projects. Requirements management reduces the risk of project failure by creating a communication channel among stakeholders. This process creates a shared understanding of expectations and general protocols to help the team reach a consensus. 

Additionally, by defining the requirements at the project’s start, the project is less likely to incur cost overruns and mistakes. 

Especially in Agile development methodology, Blokdyk advises, “Have a best practice in place for incorporating requirements management, risk management, system architecture definition, and testing or documentation.”

Best practices for requirements management include providing upfront communication, clearly defining requirements, and adhering to the requirements management plan. In addition, analysts must work to engage and educate stakeholders and team members. 

In Understanding the Sources of Information Systems Project Failure, John McManus and Trevor Harper-Wood identify poor requirement definition as a leading factor contributing to 35 percent of project failures. In addition to clearly defining your project requirements, adhere to the following best practices: 

• Proactively communicate and encourage feedback from team members. 
• Include requirements management throughout the business’s strategic objectives and as a part of operations. 
• Confirm that all project team members understand the importance of following the RMP and actively managing requirements. 
• Do not change the baseline requirements once completed without going through a change process and approval. 
• Have a clear change management plan. 
• Avoid surprises by planning requirements upfront and communicating roles, timelines, and responsibilities. Make sure your requirements are well defined.  
• Link each requirement to a test to assess its ongoing performance. 
• Engage stakeholders and managers in the RM process from the beginning. 
• Implement the RMP at the project’s start, and refer to it throughout its lifecycle. 
• Use requirement management software tools to expedite processes, communication roadblocks, and schedules. 

Blokdyk also adds the following best practices:

• Rate the quality of requirements management at your supplier organization.
• Ensure that systems engineers do the requirements management work.
• Keep the tools synchronized when you maintain multiple tools in the same lifecycle domain for requirements management.

Digital requirements management refers to a centralized collection platform. It is the hub where the team tracks, analyzes, and manages the requirements online securely. Teams use software to support real-time collaboration.

Digital solutions benefit the company by doing the following:

• Reusing the same requirement in several locations without redefining it 
• Working in real time to identify the requirement state, reducing errors
• Sharing information between documents within the system 
• Collaborating live from any location 
• Automatically recording each requirement’s history 
• Tracking the time, date, and user for each change 
• Building a database of history for audits 
• Organizing data according to the team’s communication style 
• Sorting requirements by categories, such as type, priority, risk, and status 
• Consistently keeping track of the status

Requirement lifecycle management is an official knowledge area in the BABOK®.  It describes the tasks a business analyst performs to manage and maintain requirements, including tracing, maintaining, prioritizing, assessing changes, and approving the requirements from start to finish. 

A business analyst (BA) leads an Agile project management process, documenting artifacts and advancing each stage. The BA is responsible for creating an environment that encourages analysis from all teams, as well as aligning the stakeholders, design team, and management to the requirement’s business objectives. 

The input categories in requirements lifecycle management are requirements, designs, and proposed changes. The analyst conducts the following five activities for these inputs:

• Trace Requirements: The analyst creates traces between the design and requirements, then determines which requirements are relevant to the design initiative and sets up how they will be evaluated.  
• Maintain Requirements: The analyst supports the requirement’s accuracy and consistency throughout the process, as well as examines and facilitates the requirements reuse.
• Prioritize Requirements: Next, assess the business value and risk, and then rank the requirements in order of urgency in the context of each initiative. 
• Assess Requirements Change: Review newly suggested requirements or changes to existing ones to determine if they are essential to the project. 
• Approve Requirements: The analyst communicates with stakeholders and prepares requirements for approval.  

Once completed, the analyst will have the following outputs: 

• Completed requirements from the task cycle 
• Completed designs from the task cycle
• Design and requirement change assessments

Large corporations use enterprise requirements management to organize projects between hundreds of employees. Companies this size must use RM software and modeling tools. These tools help cross-functional teams trace, develop, and execute the RMP in real time. 

An enterprise requires an architecture, or structured framework, for a team to manage the dynamic requirement changes. They have the resources and budget to implement top-level management software. Typically, the enterprise has a business architect who develops the company’s model and maintains the software. This digital platform helps business teams maintain momentum in recording and tracing data. Plus, it supports the team’s communication, agility, and momentum in a fast-paced environment.

The future of requirements management revolves around improving and enhancing current practices. Companies will increasingly adopt automation tools to optimize their processes and systems as technology advances. As a result, artificial intelligence (AI) will be a major player.

Companies continuously seek to improve their systems and processes, and requirements management is no different. Generally, companies look to advance the requirements data management through the following activities: 

• Consolidating requirements and models 
• Automating processes
• Reducing requirements
• Aligning current and future IT initiatives
• Updating RM platforms
• Integrating advanced remote work procedures
• Evaluating new technology
• Developing future-oriented IT architecture strategies

 As Blokdyk recommends, “Safeguard that your strategy is collaborating with your engineering and product peers to analyze enterprise business context (business strategy and trends), as well as change requirements in other enterprise architecture viewpoints to derive the technology architecture future state.” 

Forward-looking businesses are also experimenting with AI to enhance their existing data management systems. 

Kavita Ganesan, the Founder of Opinosis Analytics and author of The Business Case for AI: A Leader's Guide to AI Strategies, Best Practices & Real-World Applications, sees the use case for AI to prioritize and structure the data, particularly text data. 

“Specifically, with the use of Natural Language Processing, a branch of study within AI, you can extract the most common set of requirements from all requirements and problems submitted,” she says. “You can then organize these requirements by type (e.g., user interface, speed, display, etc.) and summarize the requirements so that it becomes easy for teams to plan around those requirements.”

In the future, she notes that AI can align the requirements with the company’s product visions and augment the requirements gathering process with real-time requirements input analysis. But it requires the correct data, specifically historical data, to make AI-powered solutions possible.

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