Business Functions and Organizations

Business functions are the activities which your company utilizes to create products and services to its customers. These essential operations can help your business earn revenues and increase the effectiveness of your processes.

If a department within your company is able to perform the task to a very high standard, you know exactly who to reward. If there is a lapse in an area that is clearly defined, you can easily identify the person accountable. If the definition of a particular function is unclear, it may create confusion and cause overlap between departments.

It is important to understand the distinction between business processes and business functions to avoid confusion. A process is an array of closely linked tasks that serve particular goals, while functions are a larger collection of activities which are often interconnected. For instance HR’s business function could be involved in disciplinary procedures including hiring policies, training programs.

The proper organizational structure to support your business functions will depend on many aspects. These include your goals, the challenges that have arisen, as well as the projects in high demand. To reap the maximum benefit from your business, you should follow three steps. You must align on an overall value creation narrative, implement an approach called BU back to function design and determine an archetype of corporate function.

Affiliating yourself with a value-creation narrative, taking a BU-back approach to function development, and establishing a corporate-function archetype may sound complicated, but they will save your company time and frustration in the end. This will not only prevent the possibility of accidental overlap and unnecessary duplication and unnecessary duplication, but also provide your employees a better understanding of how their work contributes to the success of your business.


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