Business functions are the operations that your company uses to create products and services for its customers. These essential functions allow your business to generate revenue and ensure that your business’s processes are efficient.
When a team within your company completes a task to a high standard, you know exactly whom to reward. Similar to that when a mistake is made in a job that has been clearly defined, you are able to pinpoint who is responsible. When a function’s definition is unclear, it can cause confusion and a gap between departments.
It is crucial to know the difference between business processes and business functions in order to avoid confusion. A process is comprised of tightly connected tasks that have a particular goal, while a business function encompasses broader tasks that are usually interconnected. A HR business function, for instance could be involved in disciplinary processes, hiring policy and training programs.
Establishing the proper organizational structure to support your business operations is dependent on many aspects that include your goals and challenges that have arisen and the projects that are in high demand. To maximize the value of your company, it’s essential to follow three steps: align on a value-creation narrative, take the BU-back approach to your the design of functions, and establish a corporate-function archetype.
Aligning on a value-creation narrative using a BU-back approach to the development of functions and establishing a corporate-function archetype might sound complicated, but it will save your company time and frustration in the end. This will not only eliminate inadvertent overlaps and unnecessary duplication, but also provide your team a better understanding of the way their work contributes to the success of your organization.
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