Business functions are the core processes that allow your business to produce products or services for its customers. These essential functions allow your business to earn revenue and ensure that the company’s processes function efficiently.
If a team in your company completes an assignment to a high standard, you know exactly whom to reward. When a mistake occurs in an activity that is clearly defined, you can easily identify the person responsible. This type of clarity does not occur when the definition of a task is unclear, which could cause accidental overlap and confusion between departments.
It’s important to know the difference between business processes and business functions in order to avoid confusion. A process is a set of closely related tasks that have a specific purpose, while a business function encompasses broader functions that are usually interconnected. A HR business function, for instance may be involved in hiring policies, disciplinary procedures and training programs.
The right structure for your business needs is contingent on a variety of factors that include your goals as well as the challenges that have been uncovered and projects that are in demand. To get the most value from your organization, you must take three steps. It is Read Full Article essential to align your organization with the value creation narrative, employ an approach that is BU back to design your function and establish a corporate function archetype.
It may seem complicated it may seem complicated, but focusing on the concept of value creation using a BU-back approach to function development and establishing an archetype for corporate functions will save your company time and frustration. This will not only reduce inadvertent overlaps and unnecessary duplication, but also provide your team a clearer understanding of the way their work contributes to the success of your business.