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Functions




Functions and processes across the lifecycle

Definition of service

The value proposition

A service is a means of delivering value to customers by facilitating outcome s customers want to achieve, without the ownership of specific cost s and risk s.

Services are a means of delivering value to customers by facilitating outcomes customers want to achieve, without the ownership of specific costs and risks. Services facilitate outcomes by enhancing the performance of associated tasks and reducing the effect of constraints. The result is an increase in the probability of desired outcomes.

Figure 2.1 A conversation about the definition and meaning of services


Function s are units of organizations specialized to perform certain types of work and responsible for specific outcome s. They are self-contained, with capabilities and resource s necessary for their performance and outcomes. Capabilities include work methods internal to the functions. Functions have their own body of knowledge, which accumulates from experience. They provide structure and stability to organizations.

Functions are a means of structuring organizations so as to implement the specialization principle. Functions typically define role s and the associated authority and responsibility for a specific performance and outcomes. Coordination between functions through shared process es is a common pattern in organization design. Functions tend to optimize their work methods locally, to focus on assigned outcomes. Poor coordination between functions, combined with an inward focus, leads to functional silos that hinder alignment and feedback critical to the success of the organization as a whole. Process model s help avoid this problem with functional hierarchies by improving cross-functional coordination and control. Well-defined processes can improve productivity within and across functions.




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