Business functions refer to the various activities and processes necessary for a company to operate effectively and efficiently. These functions may include marketing and sales, finance and accounting, human resources, and operations. They are the building blocks of any organization and are necessary for the smooth running of the business. They can be divided into three main categories: operational, management, and support.
- Operational functions are those that directly generate revenue and include activities such as production, sales, and customer service.
- Management functions are responsible for planning and organizing the company’s resources, setting goals and objectives, and overseeing the day-to-day operations.
- Support functions help the company to operate effectively and efficiently but do not directly generate revenue such as finance and accounting, human resources, and information technology.
All these functions work together to help the company achieve its goals and objectives and are essential for its success.
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VIDEO 1: Functions of a Business
A business function is also defined as any set of activities performed by the department that is initiated by an event, transforms information, materials or business commitments, and procedures and output (e.g., order fulfillment, invoicing, cash management, manufacturing, customer response tracking, regulatory submissions, etc.)
The challenge: People in these functions will likely need to agree on the path forward, and you will have to help them see what is possible.
VIDEO 2: Organizations Operate in Silos
You likely know that functions organize businesses. But have you thought about the specific focus those functions have?
Each department comprises experts specializing in specific areas, such as accounting, sales, or digital marketing, rather than wearing multiple hats.
The challenge: Businesses are aligned vertically, creating silos you will have to navigate.