Internally, your organization needs to be managed in ways that ensure investors and customers stay interested. In order for your organization to survive for the long-term, it needs to obtain value from vendors and employees.
There are numerous variables your organization manages internally to keep external stakeholders interested through value creation. One of the most significant ways to create value internally is by managing expenses with vendors and employees.
- Vendors. In order to manage expenses well, your colleagues work with vendors to find the best price for the best product or service to fulfill budget expectations and support margin objectives. Whether it is airline tickets, benefit plans, paper clips, or coffee, you and your organization take on the role of a customer, just like the external customer described previously.
- Employees. Today’s fast-paced and competitive marketplaces demand that organizations remain nimble and creative, increase revenue while reducing costs, and change frequently. In order to achieve these challenging objectives, organizations need you focused on creating value. Good performance is expected – you must contribute more than just doing your job well. Your organization needs you to focus on activities (i.e., managing expenses) that connect your contributions to your organization’s business performance.