Business Functions and Organizations

Business Functions and Organizations

Business functions are the processes that your company uses to create products and services for its customers. These fundamental operations enable your business to generate income and ensure that the business’s processes run smoothly.

If a department within your company performs the task to a very high standard, you will know exactly who to reward. In the same way in the event of a lapse made in a job that has been clearly defined, you can quickly identify the person responsible. This type of clarity does not exist when the definition of a task is unclear, which could lead to inadvertent overlap and confusion among departments.

It is crucial to know the difference between business processes and business functions to avoid confusion. A process is an array of closely related tasks with a specific purpose, while an function is a wider set of activities which are often interconnected. A HR business function, for example could be involved in the hiring process, disciplinary procedures, and training programs.

The ideal organizational structure for your business functions will depend on many aspects. This includes your goals, the challenges that have arisen, as well as the projects in high demand. However, to make the most of your company, it’s essential to follow three steps: align yourself with a value-creation strategy, take the BU-back approach to your function design, and determine the archetype of a corporate function.

It may seem complicated and confusing, but aligning yourself with a narrative of value-creation by 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 eliminate accidental overlaps and unnecessary duplication however, it will also give your employees a better understanding of how their work is integral to the success of your company.

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