Financial management by the company

For value creation stimulation the organization has to concentrate the efforts on elimination of losses (the kinds of activity which are not creating a value added). It needs such system of budget planning and drawing up the reporting which will help to define and to accurately allocate the amount of losses in the organization.

All-widespread tactics to make losses of the organization visible is in marking somehow such kinds of activity. Such marking will allow the management to group and summarize costs of the kinds of activity which are not creating a value added within a certain business process, department or function.

Quality achievement due to decrease in working loading. The problem of value creation demands search of ways of reduction of working loading without decline in quality of the end result. It can achieve by correction of level of service or reduction of number of performance of separate elements.

As key to the successful solution of a task of decrease in working loading serves the deep understanding of requirements imposed by consumers to the final product. It is more, than just the nobility that is wanted by consumers (both internal, and external). It also means understanding of an essence of the need for a concrete product and its intended use.

Change of approach to the used or not used functionality for the purpose of value creation. In order that in the conditions of today's market to manage to create cost, the organization has to change the approach to planning and pass from budget planning on the basis of variable and constant costs to the budget planning aimed at value creation. Partially problems with constant and variable costs are connected with the word "constants". When someone refers any expenses to category of constant costs, there is a belief that with such expenses nothing can already be made. By definition, constant expenses are such expenses which are not subject to change.

Instead of reflecting over something that cannot be changed, the management has to concentrate the attention on the used and not used functionality.