Business functions are the processes that your company employs to create products and services to its customers. These core operations allow your business to generate revenue and ensure that the business’s processes function efficiently.

If a department within your company completes the task to a very high standard, you know exactly who to praise. If there is a lapse in the context of a clearly defined task you are able to pinpoint the person accountable. If a function’s definition is unclear, it can cause confusion and a gap between departments.

It is crucial to know the distinction between business processes and business functions to avoid confusion. A process involves tightly related tasks with a specific goal, while a business function encompasses broader tasks which are often interconnected. For example, an HR business function might be involved in disciplinary procedures including https://allhomeonlinebusiness.com/what-is-a-business-hierarchy-and-does-it-work hiring policies, training programs.

The proper organizational structure to support your business functions will depend on many factors. These include your objectives and the challenges that have arisen, as well as the projects that are in high demand. To get the most from your organization, you must take three steps. You must align on a value-creation narrative, employ a BU back approach to function design and determine a corporate function archetype.

The importance of aligning with a value-creation story and implementing a BU-back approach to developing functions, and determining an archetype for corporate functions might sound difficult, but it will save your company time and frustration in the end. This will not only reduce 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.