*What output do you get for the input (money) you put in?* >[!External Links]+ >[[Value for Money Position Statement]] ## Definition The utility derived from every purchase or every sum of money spent. Not just the minimum purchase price (economy) but also on the maximum efficiency and effectiveness of the purchase. So it's about the relationship between these four E's: - economy (cost minimisation). *Are inputs of appropriate quality bought at a minimised price?* - efficiency (output maximisation). *How well are inputs converted into outputs?* - effectiveness (attainment of (intended) results). *How well do those outputs achieve outcomes?* - Equity: *How are services available to everyone?* [](https://www.nao.org.uk/wp-content/uploads/sites/4/2013/02/commission_flow_chart_large-1.jpg) ## Poor value for money Poor value for money means either that: - more needs to be spent to achieve the expected outcomes, leaving less money for other programmes, services, users and outcomes; or - the impact of the programme or service is less: fewer users receive the expected benefits or outcomes; or all or some users benefit less than they should. ## Improving Value for Money There are [[Value for Money Tools]] and [[Steps to achieve value for money]]. It is essential to have a clear communications strategy - define the value proposition early to avoid expectation gaps - corroborate the value with an independent third party **Best** value for money is defined as _the most advantageous combination of cost, quality and sustainability to meet customer requirements_ ## Impact on Students' Unions Students' Unions BOTH 1. Ensure value for money in universities - Provides assurance through public participation in the development of projects at the concept level where value for students is conceived, articulated and a 'social contract' signed. 2. Are subject to value for money questions from their university. See [[Why I think we offer the University value for money]].