What’s the front-office?
A company’s front-office serves customers. A firm’s front office activities include customer service, sales, and industry specialists offering advice.
Front-office tasks create most of a company’s income.
Understanding Front-Office
The phrase “front office” originated in early 20th-century law enforcement. Criminals called the central police office or detective bureau the “front office” since it was the highest law enforcement facility in a local region. By the 1930s, the word front office referred to managers and executives, the most critical employees.
Front office personnel interact primarily with clients. Most firms have a front office for reception and sales. In financial services, front-office staff are wealth management professionals who create money by delivering direct customer service. Receptionists and other front-office workers may be the lowest-paid in their business.
Front, middle, and back offices
Many companies have a front office, a middle office, and a back office. The front office handles sales and client service, the middle office manages risk and corporate strategy, and the back office offers analysis, technical, and administrative support.
In this arrangement, middle and back office staff assist front office staff. Middle office staff ensures a corporation stays stable and follows standards and ethics. Financial services firms may have corporate strategy, compliance, and financial control departments.
The back office comprises administrative assistants, HR, and accounting professionals. IT and technology departments are crucial to back-office operations. Financial services firms rely on predictive analytics and algorithms.
Special Considerations
In investment banking, hotels, and sports, “front office” has a particular connotation.
Customers enter the hotel through the main office. It is also known as the receiving area. A receptionist works in the front office and contacts clients, confirms reservations, and answers inquiries.
In investment banking, the front office often generates money. The front office specializes in investment banking and markets. Investment bankers guide M&A and capital-raising strategies. Market-type front-office employees of investment banks either sell and trade or do research.
Sports teams employ various individuals in the front office, from owners to general managers to ticket sales offices.
Conclusion
- Many companies have a front office, a middle office, and a back office.
- The front office includes marketing, sales, and service staff.
- Because of its direct client contact, the front office generates most of the firm’s revenue.
- The back office provides HR, IT, financial, and secretarial support to the front office.
