The title of Jim Sinur’s breakfast session this morning is based on the “lack of respect” that rules have as a key component in business processes: as he pointed out, it’s very difficult to explain to a business executive what business rules do and their value (something to which I can personally attest). I’ve been talking about the value of externalizing rules from processes for a number of years, and Jim and I are definitely on the same page here. He has some numbers to back this up: a rules management system can expect to show an IRR of 15%, and in some industries that are very rules-intensive, it can be much higher.

Rules are everywhere: embodied in multiple systems, as well as in manual procedures and within employee’s heads; it goes without saying that there can be inconsistent versions of what should be the same rule in different places, leading to inconsistent business processes and outcomes. Extracting the rules out of the systems – and with more difficulty, from people’s heads – and managing them in a common rules system allows those rules to become