The provision of a Value for Money (VfM) service is a key requirement of any organisation. Homes in Havering (HiH) has developed and applied a VfM strategy to establish a more cost effective and efficient service for residents.
What is VfM?
VfM is the balance between cost and quality. VfM is about providing the same service for less money or providing a better service for the same money.
How is VfM measured?
VfM is measured by comparing the cost of a service with the level of quality that it provides. This is achieved taking due considerations to:
- How much we pay for our goods and services (i.e. Economy)
- How well we use the goods and services we buy (i.e. Efficiency)
- How much our services deliver real outcomes that meet the needs of residents (i.e. Effectiveness).
Why is delivering VfM important?
Various groups have an interest in our delivery of a VfM service. These include:
- Residents:Tenants and leaseholders want good services at low cost as this will help to keep council tax down, prevent the wasting of funds and keep spending in-line with local priorities
- HiH Board:Our Board fully supports the VfM strategy as sound financial and resource management is one of the organisation's Strategic Themes
- The Audit Commission:The independent watchdog, which inspects the effectiveness and efficiency of local public services, assess our VfM strategy to see how we are meeting the challenge of delivering VfM services.
How is HiH delivering VfM?
We are delivering VfM by:
- Applying a VfM mentality to everything we do
- Comparing ourselves with similar organisations to make sure that we remain competitive
- Recognising that quality is as important as low costs
- Constantly looking at new ways of delivering better services for residents including partnership opportunities with other agencies
What examples are there that Homes in Havering is providing VfM?
Examples that we are providing VfM include:
- Using a cheaper external gas contractor
- Improving our voids process to generate a cashable saving
- Improved the Aids and Adaptations Service
What is the Audit Commission's view on how HiH is providing VfM?
In their most recent review of our services, the Audit Commission reported the following:
Achievements:
- Strengths of our VfM strategy outweigh the weaknesses
- We are delivering service at a relatively low cost whilst making improvements in performance
- Significant savings have been made
Areas for improvement:
- Increased involvement of residents in VfM activities
How can I get involved in the VfM strategy?
You can get involved by joining the Value for Money Steering Group (VfMSG). Click hereto find out how to join. You can also let us know your thoughts regarding our VfM strategy by completing the online form entitled 'Let us know what you think' available at the right of this page.
How does HiH plan to involve more residents in the strategy?
Some ways in which we encourage residents' thoughts and suggestions on our VfM activities include:
- The Value for Money Steering Group (VfMSG)
- Surveys
- Newsletters
- Various events and open days
- Setting priorities and reallocation of resources
- Setting service standards and commitments
