Course Outline

Key features and trends in value for money (VFM)

• The main features and principles of VFM.
• Where VFM has come from and where it’s going.
• Best practice in economic theory and tools for VFM.
• Overview of key players’ roles and understanding of VFM e.g. DFID, UN, World Bank).
• Tools to drive, evidence and manage VFM in organizations and programmes.

Importance of VFM assessment 

• How donors approach VFM
• Public perceptions of aid and VFM
• Who counts – what about the beneficiaries?
• Internal drivers
• Partner perspectives

Tools for VFM: driving efficiency and effectiveness

• Developing, understanding and testing your theory of change.
• Tools and techniques for managing efficiency and input-output relationships.
• Understanding and applying Cost-Utility Analysis (CUA).
• Where to apply efficiency measures within project design and delivery.

Tools for VFM: managing efficiency and effectiveness

• Understanding and applying Cost-Effectiveness Analysis.
• Understanding and conducting Cost-Benefit Analysis, including Social Return on Investment (SROI).
• Accounting for triple bottom line outcomes: social, economic and environmental.
• Understanding and applying Multi-Criteria Appraisal.
• Where to apply effective measures within project design and delivery.

Planning: considering VFM in programme design

• Using the theory of change and stakeholder analysis to generate options in programme design
• Using options analysis to make a business case
• Identifying the key components of VFM
• Risk analysis and pricing risk
• Valuing leverage and sustainability
• Addressing VFM in proposals to donors

Implementing: ensuring VFM during project implementation

• Activity-based budgeting and calculating unit costs
• Linking unit costs to outputs and outcomes
• Identifying and improving decision-making processes which add or destroy value: partner selection; procurement; monitoring and evaluation; budget management; risk management
• Reporting on the management of VFM

Reviewing: evaluating and reporting how VFM is achieved

• Identifying indicators and measurement processes
• Comparing and explaining different results
• Estimating the hard to measure benefits
• Reporting on the measurement of VFM

 Action planning: engaging your organization in developing a value for money action plan

• Developing a SWOT for your organization in relation to VFM
• How to engage key stakeholders in developing an organizational action plan on VFM
• Overcoming obstacles