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ACCA Strategic Professional · Advanced Performance Management · Performance optimisation in specific contexts

Marlowe Council runs a social housing service. The board is told that cost per repair has fallen 12%, but tenant complaints have risen sharply and repeat visits have doubled. Which assessment is most appropriate using a value for money lens?

Economy or efficiency may have improved through lower unit cost, but effectiveness has probably declined because complaints and repeat visits show repairs are failing to meet tenants' needs. Value for money requires all three Es, so it has not clearly improved.

  1. AEconomy and efficiency may have improved, but effectiveness has probably fallen, so value for money has not clearly improvedCorrect
  2. BValue for money has improved because unit cost fell
  3. CEffectiveness has improved because more visits are completed
  4. DOnly economy matters in public services, so the result is positive

Explanation

Lower cost per repair suggests better economy or efficiency. Rising complaints and repeat visits show repairs are not achieving their intended outcome, so effectiveness has fallen. Value for money needs all three Es, so improvement is not demonstrated.

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