Business functions are the activities that your company employs to produce products and services for its customers. These essential functions allow your business to earn revenue and ensure that the company’s processes are efficient.
You know who to recognize when a team within your organization performs at the highest level. In the same way when a mistake is made in a task that has been clearly defined, it is easy to pinpoint who is responsible. This clarity doesn’t exist when the definition of the function is unclear, which can result in inadvertent overlaps and confusion among departments.
To avoid this kind of confusion, you https://allhomeonlinebusiness.com/what-is-a-business-hierarchy-and-does-it-work need to know the distinction between business functions and business processes. A process is an array of closely related tasks that serve an objective, whereas the term “function” refers to a broad range of tasks that are typically connected. A HR business function, for example is likely to be involved with the hiring process, disciplinary procedures and training programs.
The right structure for your business functions depends on many factors, including your goals as well as the challenges that have been uncovered and projects that are in demand. To get the most from your organization, you must take three steps. You must agree on a value creation narrative, adopt the BU back approach to design your function and establish an archetype for corporate functions.
It may seem complicated, but aligning on the concept 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 stop duplicate work and accidental overlap, but also give your employees a clearer understanding of how their work is integral to the success of your business.