Business functions are the fundamental processes that allow your business to produce products or services for its customers. These fundamental operations enable your business to generate income and ensure that your business’s processes run smoothly.
When a department in your company completes tasks to a high standard, you are aware of whom to reward. Similar to that in the event of a lapse made in a job that has been clearly defined, you can quickly identify the person responsible. When a function’s definition is unclear, it can cause confusion and a gap between departments.
It’s important to know the distinction between business processes and business functions to avoid confusion. A process is a set of closely related tasks that have a particular goal and a business function encompasses more general activities that are usually interconnected. A HR business function, for example, might be involved with disciplinary processes, hiring policy, and training programs.
The proper organizational structure to support your business functions will depend on many factors. These include your objectives as well as the challenges that have arisen, and the projects that are in high demand. To maximize the value of your organization, you must follow three steps. You must be aligned on the value creation narrative, adopt the BU back approach to design your function and establish an archetype for corporate functions.
Affiliating yourself with a value-creation narrative and implementing a BU-back approach to function development, and determining a corporate-function archetype might sound difficult, but it will save your company time and frustration in the end. This will not only eliminate accidental overlaps and unnecessary duplication however, it will also give your employees a clearer understanding of how their work is integral to the success of your company.
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