The Three E’s
VFM is often described and assessed in terms of “the three Es” of economy, efficiency and effectiveness; and sometimes a fourth E (for equity) is included:
Economy - careful use of resources to minimise expense, time or effort.
Efficiency - delivering the same level of service for minimum input of cost, time or effort; or obtaining maximum benefit from a given level of input.
Effectiveness – delivering a successful outcome and meeting objectives as fully as possible.
Equity – delivering services and using resources in a way that is fair to all.