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Business Functions and Organizations

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Business functions are the processes which your company utilizes to create products and services to its customers. These fundamental functions help your business generate revenue and ensure the effectiveness of your processes.

If a team in your company completes an assignment to a high standard, you know precisely who to praise. If a mistake is made in an activity that is clearly defined you are able to pinpoint the person responsible. This type of clarity does not occur when the definition of a task is unclear, which can result in accidental overlap and confusion between departments.

To avoid this type of confusion, it’s important to be aware of the difference between business functions and processes. A process is a sequence of closely related tasks that have an exact purpose, whereas the term “function” refers to a broad collection of activities which are often interconnected. For instance HR’s business functions could be involved in disciplinary procedures, hiring policies, and training programs.

The right structure for your business functions depends on a myriad of factors such as your goals and challenges that have arisen and the projects that are in high demand. To get the most from your organization, you must follow three steps. It is essential to align your organization with a value-creation narrative, employ a BU back approach to design the function and decide on an archetype for corporate functions.

It might seem difficult 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 company time and frustration. This will not only reduce accidental overlap and unnecessary duplication as well as give your employees a better understanding of how their work contributes to the success of your business.