Doing More With Less: Value for Money Rationale

Over the years, we have carried out numerous engagements with companies of different sizes, from Small Medium Enterprises (SMEs) to multinational companies, supporting them in the pursuit of Value for Money from deployed resources. Value for Money is now a significant economic concept premised on obtaining best value for sums expended. it has developed into a modern management tool as a collection of structured set of techniques that are applied to obtain cost reduction, process improvement and enhanced productivity.

It is equally now a comprehensive plan of action aimed at optimising output for maximum impact from available resources. It’s also potent in project support so that it is delivered on schedule and to budget. The principles of Value for Money are applicable to both the private and public sectors and even to individuals in all walks of life. To this effect, it has been considered necessary to drive more interest in its application and use in all strata of life on all possible platforms. Since I gave this indication, there has been a buzz of significant interest in all my social media handles. This is highly welcomed and heart-warming.

There are lots of useful tips ahead as we progress.
From the foregoing, it’s apt to remember and bring in here the frequently quoted Mr Micawber’s principle on his advice in David Copperfield: “Annual income 20 pounds, annual expenditure, 19 [pounds], 19 [shillings] and six [pence], result happiness. Annual income, 20 pounds, annual expenditure, 20 pounds and six, result misery”.

This is the essence of value for money as it targets spending our scarce resources prudently.Given that resources are scarce, we make choices every day. If an individual buys a car, he will not have the money to go on the long-planned holiday. Similarly, if a company builds an assembly line, it will not be able to build the planned staff quarters. So it applies to government too. Matching our numerous needs to our scarce resources with an eye for opportunity cost is the essence of economics and the source of satisfaction, happiness and wealth creation.

Unfortunately, resources are continuously misallocated and misapplied at all levels – individual, corporate and government and as such obtaining Value for Money has become a mirage. The implication of this is the quantum of misery all over for the people – low and continuous slide in productivity, failed and failing businesses, increasing poverty, unemployment, deteriorating infrastructure and most abysmal, falling standards of living.

It also sadly remains the fact that while it’s essential that we ceaselessly try to optimise output for maximum impact from available resources, no matter how little, there is always the wrong assertion that the choice is between increase in output and reduction in quality. This is in negation of the principle of Value for Money, which requires that we at all times strive to optimise resources, do more with less towards increase in output and avoid reduction in quality. There is a need to discuss the related principles in detail so as to give a direction on how to go about it.

On the whole, the general principles of Value for Money teach the judicious use of input and improved processes to generate higher output, prescribing the relevance of information on price, quantity and quality for a choice to be made. Value for Money is obtained when we are happy with a choice that we have made and can say that we obtained maximum satisfaction from the scarce resources deployed. It is on this core, that a commercial product is deemed successful if it provides satisfaction on price, quantity and quality as it would rarely attract patronage in the absence of these.

Value for Money is obtaining maximum benefit from available resources or spending less, spending well and spending wisely to achieve maximum benefit. It is a call to Do More with Less, applying the Value for Money Principles.
For sure, we can do it by applying the principles.