QUESTION 65
WHAT’S VALUE FOR MONEY?
Why it’s important: Every organisation must pursue economy, efficiency and effectiveness if it wants to survive and prosper.
Value for money (VFM) is a concept that came to prominence in the UK in the early 1980s and became one of Margaret Thatcher’s foundational strategies to control public sector expenditure. It has since found its way into most organisations in one form or another.
VFM consists of three interrelated concepts:
- Economy is concerned with obtaining goods of the right standard at the least cost.
- Efficiency is concerned with maximising the production of goods and services at the required standard ...
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