Value For Money
What is Value for Money?
Value for Money (VFM) is the term used to assess whether or not an organisation has obtained the maximum benefit from the goods and services it acquires and provides, within the resources available to it. It not only measures the cost of goods and services, but also takes account of the mix of quality, cost, resource usage, fitness for purpose, timeliness, convenience and satisfaction, to judge whether or not, when taken together, they constitute good value.
Corporate Objective: Achieving Value for Money
It is vital, from a business perspective, that we continue to seek and implement efficiencies throughout our operations. We must be able to demonstrate that we spend money in a way that achieves the best outcomes for the least money. This does not mean that the cheapest option will necessarily be the best and so we will strive to ensure that we get the balance right between cost and quality in all that we do.
VFM & Efficiency Pledges:
All employees will be aware of their obligation to improve value for money.
- We will support staff by providing information, tools and systems, which enable staff to deliver ‘value for money’.
- We will work to reduce our unit costs, by improving service efficiencies.
- We will achieve more for less, by doing things differently, undertaking processes reviews.
- We will consider all ideas for reducing our costs; nothing will be excluded from consideration.
- We will promote our published information on value for money achieved, particularly promoting our VFM self assessment to increase awareness.
- We will continue to publish targets for savings and demonstrate performance against our targets going forwards.
- We will promote Innovation to achieve Excellence in value for money whilst continuing to uphold our core value of Care.
- We will review our VFM Strategy every two years.