The traditional enterprise financial management mainly focuses on the book value of assets, the profit assessment, and ignores the long-term profitability and the opportunity cost of funds. From the value management point of view, the enterprise value is equal to the discounted value of future cash flow, depending on the level of capital cost and investment return. As a modern enterprise management method, value management should consider the time factor of obtaining asset returns and reflect the enterprise's potential profitability. On the other hand, we should consider the opportunity cost of capital and risk factors, so as to arrange the enterprise development plan in a coordinated manner, select the investment plan rationally, arrange the financing effectively, and scientifically formulate the performance incentive policies and management measures that are compatible with the growth of value. The main characteristics of value management are as follows.
1.1 Value management focuses on cash flow management
Unlike traditional profit management, value management pays more attention to the ability to create cash flow in the future. Modern enterprise valuation theory believes that corporate value is a more important determinant than accounting indicators such as earnings per share, sales, and profit growth. Corporate value depends not on the current financial book value, but on the ability of the target company to generate cash flow in the future. Cash flow is the amount of cash received and paid by the company's cash outflow and cash inflow in the current year. It represents the change in the amount of actual disposable cash of the company. It is essentially the value of monetized investment that investors can obtain. Cash flow management is an important function of modern enterprise management, and a sound cash flow management system is an important guarantee for the profitability and financial strength of enterprises.
1.2 Value management challenges are value drivers
Value driving factor is the key variable that affects the value creation of the enterprise, and it is the decisive factor that determines the future direction of the enterprise. It has a major impact on the future business activities of the enterprise. According to Aerfuleide·lapabote's value management model, the drivers that affect corporate value include cash flow and capital costs. Specific indicators include sales growth rate, market share, inventory turnover rate, cash cost, net profit margin, cash flow, and weighted average capital costs. Wait. Value drivers exist in all aspects of the enterprise's production and operation, involving various fields such as R&D, production, and sales. The difficulty of enterprise value management is to grasp the current and future potential value drivers, make management decisions and adopt appropriate measures to effectively enhance enterprise value.
1.3 Process management is at the heart of value management
The core of value management is to transform the functional management model into a process management model. The focus of the traditional functional management model is on the front end of resource approval, and the middle and end management are weak or absent, making it difficult to mobilize enterprise resources to form core competitiveness. The decision-making focus of value management is on process management, including the whole process of strategy, organization, planning, control, evaluation and implementation. The company uses value management to carry out strategy and daily management decisions, and dynamically allocate resources around strategy implementation and performance realization to enhance the core competitiveness of the company.
1.4 The essence of value management is human management
The realization of enterprise value depends on human creativity and labor. High-quality and high-skilled talents are inexhaustible sources of enterprise core competitiveness. Only by giving full play to people's subjective initiative can we mobilize the company's resources and translate them into actions to enhance the company's value. In the process of implementing value management in enterprises, each management activity needs to be decomposed into specific tasks according to value drivers and eventually implemented to various functional departments, project groups and individuals. Successful value management actions need to fully mobilize the subjective initiative of all members, improve the efficiency of the team cooperation through corporate culture and performance assessment, and realize the value creation of the company.

2. Development of Value Management Research
The development of enterprise management is roughly divided into three stages: First, from the end of the 19th century to the beginning of the 20th century, from the classical management theory to the scientific management stage; The second is the lean management phase of Toyota Motor Co., Ltd. in the 1980s; Third, the end of the 20th century, value chain management as the core of the enterprise value management stage. Although the academic community has different interpretations of enterprise value management, in essence, value management is a method and tool to help companies integrate various types of resources to maximize value, and through adjusting corporate development strategies, implement value drivers analysis and process reengineering. We should make full use of the existing resource potential to realize the closed-loop circular management of value target prediction, driving factor analysis, value evaluation and problem handling. The ultimate goal of value management is to maximize the value of stakeholders and realize the maximum value of shareholders.
2.1 Overview of Foreign Studies
In June 1958, Professor Miller and Modigelaini conducted a scientific analysis of the value of the company and the cost of capital, and proposed that the value of the company has nothing to do with the capital structure, but is related to the ability of the company to create cash flow. Through the rationalization of investment decision, enterprises can create the ideal cash flow of business activities and maximize the value of the company. In 1969, the economist James Tobin proposed the "Tobin Q theory," that is, the Tobin Q value is equal to the ratio of the market value of the company to the value of the company's property. Because Tobin Q has the ability to distinguish the marginal efficiency of capital from the financial cost of capital, it is widely used in the study of corporate value. In the 1990s, Tangmu·kepulan, Dimu·kele, and Jack Merlin published "Value Assessment: Measurement and Management of Enterprise Value", which elaborated the basic principles of value creation, analyzed the drivers of enterprise value creation, and expanded the ways of enterprise value., Discusses the enterprise discount cash flow evaluation model and the economic profit model. In 2002, Aerfuluode·lapabote proposed the principle of value management in his book "Creating Shareholder Value", which confirmed that there is a direct connection between competition strategy and shareholder value, and proposed that the core of value management is to convert the principle of value creation into specific value management practices.
2.2 Overview of domestic studies
Our country started late in the research field of enterprise value assessment. It was not until the late 1990s that value management theory was introduced into our country. The research of Chinese scholars in this field is mostly based on the theories and methods of foreign countries to carry out integrated innovation and explore the value management that suits the characteristics of Chinese enterprises. In 1995, Yangzhongzhi explored the theory of asset evaluation and established an asset return model in the form of case studies. However, he did not further study the valuation of enterprises. In 2000, Wangping studied three major drivers of value management: cash flow, budget control, and capital costs. In 2001, two scholars, Lilin and Liji, combined business management mechanisms, competitive advantages, and corporate values. In 2002, Zhangzhenchuan discussed the impact of corporate risk systems on corporate value contributions, and initially established a risk management system that began with strategic decision-making and finally performance evaluation. In 2005, Chenhuamin pointed out that it is necessary to emphasize the value motivation analysis of enterprise causal value system. Li Dong and Wang Xiang have constructed three latitudes of the enterprise value strategy, namely, unique resource development strategy, value power system optimization strategy and value image resource development strategy. Heying proposed a full set of management systems that integrate various management practices with the concept of value management. That is, to increase cash flow through effective investment decisions and implementation, to reduce capital costs through reasonable financing decisions, to improve the corporate governance system, to strengthen customer relationship management to optimize organizational and process management, and to strengthen risk management as a guarantee. Formed by strategic management, performance management and budget management of the three components of closed-loop feedback loop system.
3. Implementation of Value Management in China's Oil Enterprises
Since the beginning of the 21st century, some oil enterprises in China have applied the model and method designed by McKinsey consulting company to evaluate the value of oil and gas business and design the value management framework, but the application effect and effect are limited. At present, although some enterprises have embedded EVA, FCF and other value indicators in their performance appraisal system, both weight design, performance appraisal and index management are still in the initial application stage, and China's oil enterprises are still far from the standards of enterprises with excellent value management. There are some outstanding problems in the practical application of value management.

3.1 Inadequate understanding of the strategic significance of value management in enterprises
Since the implementation of value management in China's oil enterprises, EVA and other evaluation indicators have been introduced, and the weight of its assessment is placed in a prominent position. On January 20, 2014, the SASAC issued the "Guidance on Strengthening the Value Management of Central Enterprises with Economic Value Added as the Core", requiring central enterprises to fully integrate value concepts into the existing business management system and institutionalize value management, tooling, and informatization. Value management needs to adjust and perfect the existing management system with the thinking of value creation and the concept of capital cost, so that value management can be integrated into the enterprise management process, and realize the integration of strategy, plan, budget, assessment and incentive around the value main line. Although SASAC's new management methods have attracted great attention from oil companies, most corporate leaders and employees 'understanding of value management still stays at the assessment level and fails to rise to the management tool level. The daily investment management and management decisions of enterprises still emphasize the scale and profit, and lack a clear and profound understanding of value management. Some senior managers even believe that the SASAC's value management and enterprise management system conflict, lack of strategic vision and long-term understanding of enterprise value management work.
3.2 Low level of development and informatization of value management tools
SASAC in the construction of the central enterprise value management system clearly requires the establishment and improvement of the value diagnosis system and indicator monitoring system. At present, China's oil enterprises in value drivers analysis, tracking, monitoring and management, has not yet achieved standardization and informatization, tracking the depth, breadth and frequency of monitoring. Although China National Offshore Oil Corporation(CNOOC) has established asset portfolio financial performance forecasting models, and China National Petroleum Corporation(CNOOC) has also established value management tools such as overseas oil and gas project valuation models, none of them has achieved online management and dynamic monitoring. Management tools have limited application value and utility. In the process of value management, it is the key to the success of value management to provide real-time verification information system for value management. Using the cash flow method to monitor the future value of the project dynamically can fully reflect the actual value and development potential of the enterprise. It is of great strategic significance to improve the management assets management and decision-making and maximize the value of the enterprise.
3.3 The current budget management system focuses on finance rather than value
Most of the petroleum enterprises in China have the background of state-owned enterprises and need to bear more social responsibilities. The overall assets and number of enterprises are relatively large, with more subordinate enterprises and long value chains. Judging from the existing fund budget management system, China's oil enterprises 'budget management focuses on the financial budget rather than the value budget, and the value management required by the SASAC has been improved. Most oil enterprises are only implemented at the stage of evaluation of indicators. The full value management in the real sense has not been achieved. The disadvantage of financial budget lies in the "resource-based" thinking. Most of the investment decisions and strategy implementation of enterprises rely on the amount of existing resources, and they fail to consider the long-term development of enterprises from the perspective of value growth. The fund management method under this planning system, which relies too much on the resource allocation of the upper strata of the group, can easily lead to information distortion, miss the market opportunity, and can not really play the role of planning and control. There is still a big gap between the goals of building international large oil companies.
3.4 Existing performance appraisal systems highlight profits rather than business value
The current assessment system of petroleum enterprises in China still focuses on profit, not EVA and other value indicators, which is difficult to reflect the long-term development potential of enterprises. Enterprise profits can not reflect the true cost of the enterprise's funds. Part of its own funds does not require financial expenses, and financial accounting is regarded as zero cost. However, enterprises 'own funds are converted through the return on investment, and the cost of funds is often higher than the interest on debt funds. Profit-centred performance evaluation systems that ignore the cost of using existing resources tend to lead to over-investment and overproduction, often resulting in lower returns on investment. Taking profit as the center for assessment, it is easy to lead to short-term behavior of the enterprise. In order to cope with the assessment, the leaders of the enterprise often make large profits through less depreciation and cost distribution, which damages the long-term development potential and market value of the enterprise. Because this kind of assessment method only cares about the growth of operating income and profits, and does not pay attention to the cash flow of the company, it will lead to insufficient cash flow, affect the overall profitability of the company and its ability to resist risks, and is not conducive to the long-term sustainable development of the company.

4. Measures and Suggestions to Improve the Value Management of Oil Enterprises in China
To implement value management in petroleum enterprises in China, it is necessary to change the profit-centered management, change to value-centered management, and accelerate the transition from value accounting to value management. The company management should realize the process reorganization, improve the level of value management, better to the overall strategy of the company and daily business decisions to play a supporting function.
4.1 Enhanced top-level design and implementation of "Group 3" enterprise value management
The existing oil enterprise organization management model, at the group level, each business department according to the division of functions, separately carry out value enhancement activities such as cost reduction and efficiency; At the professional company level, each professional company carries out the value of its own production field. The group company shall make overall arrangements for each department and unit to formulate an overall plan and action plan for value enhancement. It is proposed that a value management leading group with unified command and control be set up at the top of the oil company, headed by the chairman or general manager and attended by senior management members of the company. It is mainly responsible for the formulation and improvement of the overall value management system of the company and the overall principles and plans for designing value management. It is proposed that the value management committee should consist of three dedicated management committees, consisting of a value assessment committee, an investment decision-making committee and a risk management committee. The value assessment committee is mainly responsible for value measurement and rolling monitoring, market value management and value driver management; The investment decision-making committee is mainly responsible for project approval, equity restructuring and resource allocation management; The Risk Management Committee is mainly responsible for policy and market environment analysis, risk point control management, risk prevention and control, assessment and supervision.
4.2 Business process re-engineering using "Internet +" information technology
To implement enterprise value management, we should make full use of expert resources, integrate investment decision and production operation data in the whole business scope, and carry out online platform data management of investment decision. To this end, it is necessary to simplify the approval process and authorization system and implement online business process reengineering. Specifically, it includes: cleaning up the management process and approval process that does not create value, implementing the online processing of "shunt", and solving the problem of inefficient report delivery; We will strengthen standardization, structure and standardization of the examination and approval process, and improve the efficiency and quality of the examination and approval process. Using Internet technology and mobile phone online office functions to develop the characteristics of oil enterprises online approval management; With the technology of big data analysis and knowledge management, we can realize real-time information sharing and information push function based on different rights to improve office efficiency and quality.
4.3 Emphasis on professional services to improve the quality and efficiency of resource allocation throughout the business chain
Oil enterprises create value throughout all production and operation activities in the chain of values, mainly including exploration, construction and production, oil and gas gathering and transportation, refining and sales and professional services. Professional services are ancillary production activities such as consulting and research and development, human resources management, and integrated logistics support. At present, professional services occupy a small proportion in the petroleum value chain. With the changes of the external business environment and technological updates, the market potential of professional services is increasing. Professional services are an important leverage for the value transfer and brand value enhancement of the major international oil companies. The great success of the American shale revolution has been mainly due to the long-term commitment of some private oil companies to research and development and technological innovation, and they have made technological breakthroughs. The United States oil and gas industry has been fully recovered and its value has increased. It can be seen that although professional services are not the main business of oil companies, they can become an important breakthrough to enhance brand awareness, management level and overall value. It is also a key to improve the competitiveness of our petroleum enterprises in the international market.
4.4 Value management-oriented, comprehensive budget management system
Comprehensive budget management, which closely links enterprise planning, planning, budgeting and evaluation, is an important means for modern enterprises to improve their management quality and level. Comprehensive budget management is a whole process of management interaction that integrates prior assessment, control and post evaluation, and runs through the entire life cycle of the project. Oil enterprises should establish and improve a market-oriented budget management system, link budget management with strategic planning and performance appraisal, guide resource allocation in a rational way, and optimize investment structure and business development direction. We will establish a budget control and evaluation system, strengthen the management of budgets throughout the life cycle and throughout the process, do a good job in controlling budget deviations, and adjust the direction of business development and resource allocation in a timely manner to ensure that the company's value is maximized. Oil enterprises should strengthen the analysis of key value drivers and control of risk points, and, in the process of preparing and implementing rolling budgets and annual budgets, implement key company indicators into specific budget implementation plans, and carry out budget assessments through in-action and after-action evaluations. To achieve the role of motivation and restraint to ensure maximum value of enterprises.
4.5 Broadening the Talent Incentive Mechanism through Multiple Channels to Improve the Sustainable Development of Enterprises
Because of the special social background, oil enterprises in our country can not work out the salary according to the salary system of international energy companies. To do a good job in introducing high-level talents and creating the value of existing outstanding talents, we need to implement the talent incentive mechanism that suits the National conditions and the enterprise reality. Therefore, the establishment of differentiated and diversified talent incentive model is particularly important for the full realization of talent potential and the improvement of enterprise competitiveness. Enterprises should set up different assessment standards for new and old employees. The overall principle should maximize the value of human capital, quantify employee performance with value contribution, and improve the transparency of evaluation. Differentiated wage system shall be established for employees of foreign enterprises and foreign affairs personnel. For special positions such as design, R&D, etc., should be set with its value to create a corresponding compensation system and reward standards. In addition to developing the distribution incentive mechanism guided by the realization of the value of talent capital, enterprises should also fully mobilize the self-confidence and satisfaction of employees through cultural cultivation and institutional incentives, stimulate the enthusiasm of talents for work, and advocate the values of dedication to oil.

5. Concluding remarks
The oil industry has the characteristics of complex expertise, high geopolitical uncertainty, high volatility of international oil prices, and high market risk. China's oil enterprises should have a clear and profound understanding of the strategic significance of value management. The implementation of value management must be well organized, institutional mechanisms and cultural guarantees. Value management is a systematic action of the enterprise. It is necessary to form a professional value management team, at the group level, professional plate companies and regional public
The division needs to establish a value management center. The company grants the value management center the right to make production decisions, technology research and development, and internal assessment, and through the bid international oil companies, urges the company to change from a profit-centered management approach to a value-centered management approach. Value management needs to change the corporate culture, and forming a corporate culture with the goal of maximizing value is an important premise of value management. The purpose of implementing value management is to enhance productivity. The perfect value management scheme and evaluation model do not exist, and it needs to be improved continuously in the practice of value management.