What does Value for Money mean?
Creating the best return on investment for the consumer or end-user through your personal, or your business' activities. Turning the most cost-effective inputs into the most valuable outputs for everyone involved.
The Four Es of Value for Money
One way of thinking about Value for Money is through the Four Es (below).
Each of these applies to a different part of your activities or operations.
Economy
Getting the best quality inputs at the best value prices.
This does not mean somehow maximising the quality and minimising costs; instead, it is about finding an economical balance that suits your goals.
Efficiency
How inputs are most efficiently turned into outputs through your company's transformation processes. Minimising waste and maximising productivity.
Effectiveness
How well outputs (your products or services) are turned into outcomes and impacts for the consumer or end user.
Equity
Who and how many people benefit from your work.
A later addition than the others (thought of by the now defunct UK Department for International Development), this refers to the equal distribution of your impacts across the community and society as a whole.
Now, you should go away and reflect on each stage of this – are you delivering your products or services in the most VFM way? The questions alongside the Four Es in the image below can act as the overarching framework for doing so. 