Business functions are the activities that your business uses to produce goods and services to its customers. These essential operations assist your business to generate revenue and ensure the effectiveness of your processes.
If a team in your company completes a task to a high standard, you know precisely who to reward. When a mistake occurs in a clearly defined function, you can easily identify the person accountable. If a function’s definition is unclear, it can cause confusion and a gap between departments.
To avoid this type of confusion, it’s important to understand the difference between business functions and business processes. A process is comprised of tightly connected tasks that have a specific purpose while a business task encompasses broader functions which are often interconnected. For example HR’s business function could be involved in disciplinary procedures such as hiring policies, training programs.
The ideal organizational structure for your business functions will depend on a myriad of factors. This includes your goals as well as the challenges that have arisen, as well as the projects in high demand. But to achieve the best results from your organization, it’s crucial to take three steps: align yourself with a value-creation strategy, take an approach that is BU-back to the design of your function, and then identify the archetype of a corporate function.
Affiliating yourself with a value-creation narrative and implementing a BU-back approach to development of functions, and establishing a corporate-function archetype might sound complicated, but it will save your company time and frustration in the long run. This will not only eliminate accidental overlaps and unnecessary duplication and unnecessary duplication, but also provide your employees a better understanding of how their work is integral to the success of your company.
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