Why local athorities and not for profit organisation are concentrated on…

Value for money can be broken down into the three E’s: (learn these!)

Efficiency
Effectiveness
Economy

Companies whose main objective is to make profit have very clear goals: to make profit!
However, Not for Profit Organisations have to think a bit more about its objective, and there may be more than one.
Therefore, we to talk about value for money as an objective. Consider this example of a police station using the three E’s:

Effectiveness – the objective of a police station may be to reduce crime in the city to 10%.

Efficiency – the objective is to arrive at a crime scene within 10 minutes.

Economy – keep costs below 10 million per year.

When these objectives are met, we have Value for Money!