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Functional Spec Tutorial :: What and Why
"By creating a blueprint of the application first, time and productivity are saved during the development stage. "
Just what I always say!
Extremely useful article full of good *practical* ideas and justifications for why you do it.
I think it's better, although difficult, to maintain a "code" functional spec that is the real thing in full detail, and an "executive" functional spec that summarizes changes, updates, and examples of screens, flows, etc. Coders rarely care about business justifications for stuff in their specs, and biz types' eyes glaze over when specs include detailed pre- and post-conditions for interactions, rules for form behavior, and other interaction nitty gritty. It's one more case of knowing your audience and writing for them.
Another of his interesting articles is "User Interface Design for programmers" at: http://www.joelonsoftware.com/uibook/chapters/fog0000000057.html