Business Functions and Organizations

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

If a department within your company is able to perform an assignment to a high standard, you are aware of whom to reward. When a mistake occurs in a clearly defined function, you can easily identify the person accountable. If the definition of a function is unclear, it could cause confusion and a gap between departments.

It is crucial to know the distinction between business processes and business functions in order to avoid confusion. A process is a set of closely related tasks with an exact purpose, whereas functions are a larger set of tasks which are often interconnected. For example HR’s business functions could be involved in disciplinary processes as well as hiring policies and training programs.

The ideal organizational structure for your business needs will depend on many factors. This includes your goals and objectives, the issues that have arisen, as well as the projects in high demand. To get the most value from your organization, you must take three steps. You must be aligned on a value-creation narrative, employ an approach that is BU back to function design and determine the archetype of a corporate function.

It may seem complicated, but aligning on a narrative of value creation using a BU-back approach to function development and determining an archetype for corporate functions will save your business time and frustration. This will not only prevent accidental overlap and unnecessary duplication, but also give your employees a clearer understanding of how their work is integral to the success of your company.