# Evolution of Business Functions: From Necessity to Liability By:: [[Brian Heath]] 2024-06-01 Since the beginning of businesses as we understand them, there has been an increasing number of business functions that specialize in niche organizational problems. Examples include information technology, accounting, finance, sales, marketing, operations, and human resources. In the beginning, none of these business functions existed. The tasks that fell within their accountability today were simply done, if required at all, by whomever happened to be assigned the task. Managers handled the vast majority of human resource needs and owners and their assistance did much of the accounting and sales activities. In start-ups and small businesses, one still sees this way of operating. The ability to run a business without these functions is largely why start-ups and small businesses regularly compete and beat their more resourced competition. However, these business functions are often necessary as the business grows in size and complexity. There are simply too many things to manage and process, so it is often a economic necessity to create specialized functions. Yet, it is worth considering when these business functions transform from a necessity for growth to a liability that limits adaptation and agility that allows them to be beaten by a less resourced and nimble competitor. It is hard to pinpoint exactly when this transformation occurs, because it is often slow and occurs when times are decidedly good for the business. But one can detect it's occurrence when the business functions begin to manufacture work and projects that are self-serving for the function. For example, when human resources decides to roll-out mandatory management training and meeting schedules when there is no evidence that there are management and meeting issues. Now, the human resources department will always show that there are issues in the name of continuous improvement, but often these initiatives have no positive return on the investment. Essentially, human resources is bored and the modern business culture and training norms propel us to keep busy at all times. The second that business functions begin to manufacture these kinds of projects is the moment of transformation from value-added to red-tape generation machines. To avoid this trap, organizations need to rethink their behavioral norms and the benefits of intentional mediocrity for the greater good. #### Related Items [[Business]] [[Busy]] [[Economics]] [[Organization]] [[Human Resources]] [[Function]] [[Work]]