An independent mono-eye is always more trusted than a subjective pair of eyes.

What value is it if the communication is not on time? Define value at the onset, so as to avoid expectation gaps.

Ensure common understanding of value for money.

Determine the user of the communication - complex or a simple user? Informed or uninformed? Engaged or disengaged? Cynical or believing?.

So, what are the minimums when it comes to communicating VfM? It is said that many times, value is deemed not to have been delivered because it is not declared. However difficult or seemingly impossible it is to articulate, plan, deliver and measure VfM in the public sector, a clear communication strategy is important.

Multiple stakeholders with different and unclear expectations complicate the measurement of value for money.

Cost accounting - how do you do cost accounting in the public sector?.

The public good problem - not always easy to value a public good, because money (cost) is not the only measure.

And remember, that prevention is better than cure.ĭefining and measuring value for money is fraught with various challenges in the public sector such as.

Inadequate monitoring and evaluation processesĪ public practitioner who is keen to deliver value, will work towards sealing these leaks, which can jeopardize value for money and thereby affect the social contract.

Value for money leaks, and therefore it is important to identify the typical leak points, which include: Good intentions, ethical behaviour, adept planning does not always guarantee value for money.

Revise your plans based on lessons learnt.How will you measure value for money? Tools?.Agree what value for money is with your stakeholders.

It is important to clearly define the scope of such audits, so as to get the right outcome. Different synonyms are used for value for money audit, such as – performance audits, technical audits, procurement audits, system audits, process audits etc. This is an independent practitioner’s evaluation.

User surveys/feedback is a powerful tool that helps the implementer to hear from the beneficiary if indeed the social contract was fulfilled.

Once an expenditure budget has been approved by the citizens either directly or through their elected leaders, the public sector practitioner must have a way of ensuring that he does not exceed those budget limits. Usually, value for money can be measured by comparing at the granular level, the cost of delivering an output.

Comprehensive budget (zero based vs incremental).

Public participation is expected for any government intervention, where value for citizens is conceived, articulated, and a social contract “signed”.

Stakeholder involvement at concept level.

Various tools exist for ensuring value for money, such as: It is not the intention of this article to define the 4 E’s, but to explore how the 4 E’s can be deployed in the public sector. In an attempt to provide a standard for defining and measuring value for money, 3 E’s – economy, efficiency and effectiveness, were initially introduced and later a fourth E (equity). Value for money is used interchangeably with synonyms such as:

It must also support the value of equity. In relation to public spending, it implies a concern with economy (cost minimization), efficiency (output maximization) and effectiveness (full attainment of the intended results). The concept of Value for Money (VfM) in everyday life is easily understood as “not paying more for a good or service than its quality or availability justify”. Value for money is based not only on the minimum purchase price (economy) but also on the maximum efficiency and effectiveness of the purchase. Value for money has been defined as a utility derived from every purchase or every sum of money spent.

Sononym of components