Business Functions and Organizations

Business functions are the underlying activities that allow your company produce goods or services to its customers. These core operations allow your business to generate revenue and ensure that the business’s processes run smoothly.

When a department in your business performs the task to a very high standard, you are aware of who you should reward. Similar to that in the event of a lapse committed in a process that is clearly defined, it is easy to identify the person who is responsible. This type of clarity does not exist when the definition of a function is unclear, which can result in inadvertent overlaps and confusion among departments.

It is crucial to know the distinction between business processes and business functions in order to avoid confusion. A process is comprised of tightly connected tasks that have a particular goal and a business function encompasses more general activities which are often interconnected. For instance HR’s role in business could be involved in disciplinary processes including hiring policies, training programs.

Making the right structure for your business functions depends on a variety of factors such as your goals and challenges that have arisen and projects that are in high demand. To get the most from your business, you should take three steps. You must agree on an overall value creation narrative, implement the BU back approach to design functions and identify an archetype of corporate function.

Incorporating a value-creation ethos using a BU-back approach to developing functions, and determining a corporate-function archetype may sound complicated, but they will save your company time and frustration in the end. This will not only stop inadvertent overlap and unnecessary duplication but also give your team a clearer idea of how their work is contributing to the success of your company.