Value for money

In this lesson

1. 0:00 Value for Money and the Three Es
2. 0:49 Economy: Minimising Wasteful Spend
3. 2:10 Efficiency: Maximising Output from Inputs
4. 4:22 Effectiveness: Achieving Your Objectives
5. 6:04 Balancing the Three Es in Practice
6. 8:21 Evaluating Value for Money: Case Study
7. 10:25 Analysing Economy: Staff Costs and Mix
8. 12:05 Measuring Efficiency: Output Per Input
9. 13:26 Assessing Effectiveness: Meeting Goals

About this lesson

This video breaks down each element with practical examples: economy focuses on minimising input costs without wasteful spending; efficiency measures output relative to inputs (like students per teacher); effectiveness evaluates whether objectives are actually achieved. You'll see how these three elements can conflict—cutting costs or increasing efficiency might reduce service quality—and how to apply this framework to real exam questions, including a worked example analysing a police force's performance data. By the end, you'll be able to define and distinguish between the three E's, identify relevant performance indicators for each, and structure evaluation answers that combine theory with numerical analysis. This is essential knowledge for Performance Management and Strategic Business Leader papers, where you'll encounter value for money questions worth significant marks. The key is starting with clear definitions, categorising measures correctly under each E, and reaching a justified conclusion about whether an organisation is delivering value for money overall.

Duration: 15m