Business functions are the processes that your business uses to produce products and services for its customers. These essential operations allow your business to earn revenue and ensure that the company’s processes run smoothly.
When a department in your company is able to perform an assignment to a high standard, you are aware of who to reward. If a mistake is made in an area that is clearly defined you are able to pinpoint the person accountable. When a function’s definition is unclear, it may create confusion and cause overlap between departments.
To avoid this kind of confusion, it’s crucial to understand the difference between business functions and business processes. A process involves tightly related tasks that have a specific purpose while a business task encompasses broader functions that are often interconnected. For instance HR’s role in business might be involved in disciplinary processes such as hiring policies, training programs.
Developing the right structure for your business needs is contingent on a myriad of factors, including your goals, challenges that have emerged and the projects that are in high demand. To get the most from your organization, you must take three steps. You must agree on the value creation narrative, use the BU back approach to function design and determine the archetype of http://allhomeonlinebusiness.com/what-is-a-business-hierarchy-and-does-it-work/ a corporate function.
Incorporating a value-creation ethos using a BU-back approach to developing functions, 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 eliminate any inadvertent overlap or unnecessary duplication but also give your team a clearer idea of how their work is contributing to the success of your company.
