Value for money – efficiency, effectiveness and economy

by The Gateshead Housing Company & filed under About us - Value for Money.

The Gateshead Housing Company has a strong commitment to value for money, which is reflected in the business plan and in service-delivery plans.

What is value for money?

Contrary to how it sounds, value for money isn’t just about saving money! It is about ensuring that the business is efficient, effective, and economical.

Efficiency
This is a measure of productivity – how much you get out in relation to what you put in. It is the efficiency of converting resources (inputs) into results (outputs).

Effectiveness
This measures the impact of obtaining value for money. It can be quantitative (the amount of effectiveness) or qualitative (the value of effectiveness).

Economical
This is the price paid (the impact on people as well as actual money spent) for providing a service at best value, taking price and quality into account.

What we do to secure value for money

It is our aim to continually assess opportunities to enhance our services to customers and actively involve our employees and customers to achieve value for money.

We continually look for the best value for money by sourcing the best materials at the best price. And we’re always looking for ways to make our services work more efficiently and effectively.

There is a culture of “do the right things” and “do things right”, helping ensure our service delivery is efficient, effective and economical.

Who monitors whether we provide value for money

The Homes and Communities Agency (HCA) standards state that we must demonstrate:

  • How we have ensured value for money has been secured and tested
  • Our plans and priorities for delivery of further value for money improvements.

Benchmarking

The Gateshead Housing Company is a member of the HouseMark benchmarking group, which helps social housing landlords compare the costs of service delivery, resources and key performance indicators across all areas of the business.

Benchmarking is conducted annually to analyse all areas of the business and is used to identify high performing, low cost services.

Using the HouseMark annual benchmarking exercise results, the organisation can plan to target those areas that are low performing and high cost.

Services will be expected to use benchmarking information to learn from best practice, change procedures and processes to achieve enhanced methods of working, and reduce unnecessary expenditure.