What is value for money (VfM)? A complete beginner's guide

Last reviewed: November 2026

Imagine you're responsible for buying ten new laptops for your team.

One supplier offers laptops for £350 each. Another charges £550 each.

At first glance, the cheaper laptops look like the obvious choice. After all, choosing them would save your organisation £2,000.

But what if the cheaper laptops are slower, have shorter warranties and need replacing after two years, while the more expensive laptops could last five years?

Suddenly, the decision isn't quite so straightforward.

This is where Value for Money (VfM) becomes important.

Value for Money is about making sure that the resources you use produce worthwhile results. It considers cost, quality, efficiency and outcomes rather than simply choosing the cheapest option.

Whether you're purchasing equipment, managing a budget, organising training, running a business or delivering public services, understanding Value for Money can help you make better decisions.

In this guide, we'll explain what Value for Money means, how it works, how to measure it and how to demonstrate it in everyday workplace situations.

You don't need any previous knowledge of finance, procurement or business management to follow along.

What is value for money?

Value for Money (VfM) means making the best use of available resources to achieve the results you need.

In simple terms, it asks:

Are we getting a worthwhile result from what we're spending?

Although we often associate Value for Money with financial decisions, it isn't only about money.

Resources can also include:

• Staff time.
• Equipment.
• Buildings and facilities.
• Technology.
• Materials.
• Energy.
• Professional expertise.
• Organisational capacity.

For example, an organisation might purchase inexpensive software but require employees to spend several additional hours each week using it.

Although the software costs less to buy, the additional staff time could make it more expensive overall.

Equally, a training course might be expensive but produce significant improvements in performance, reduce mistakes and improve customer satisfaction.

The key is to consider the relationship between resources used and results achieved.

The UK's National Audit Office describes Value for Money in terms of using resources effectively, efficiently and economically to achieve intended outcomes.

These principles are particularly important in public services, but they are equally useful in private businesses, charities and everyday workplace decisions.

Why is value for money important?

Every organisation operates with limited resources.

Even large organisations with substantial budgets must make choices about how they spend money and allocate staff time.

Good Value for Money helps organisations:

Make better financial decisions

Understanding Value for Money helps managers compare different options and avoid spending money on products or services that do not deliver sufficient benefits.

Reduce unnecessary waste

Organisations can identify activities, processes or purchases that consume resources without producing worthwhile results.

Improve the quality of services

Value for Money encourages organisations to consider quality and outcomes rather than focusing only on expenditure.

Make better use of employees' time

Staff time is a valuable resource.

A process that takes five hours when it could reasonably take one may represent poor Value for Money, even if no additional money is being spent.

Demonstrate accountability

Organisations may need to explain how they have used their resources to senior managers, trustees, governors, investors, funders or regulators.

Support long-term planning

A decision that looks inexpensive today may create higher costs later.

Considering long-term Value for Money helps organisations make more sustainable decisions.

The difference between price, cost and value

Before exploring Value for Money in more detail, it's important to understand three words that are often confused.

Price

Price is the amount you pay to buy something.

For example, a laptop might have a purchase price of £500.

Cost

Cost is the total amount of resources needed to buy, use, maintain and eventually replace something.

The laptop might cost £500 to purchase, but additional costs could include software, maintenance, technical support and replacement.

Value

Value is the benefit or usefulness you receive.

A laptop that allows an employee to work efficiently for five years may provide greater value than one that regularly breaks down.

These differences explain why the cheapest option isn't always the best.

Example:

In this simplified example, Laptop B has a higher purchase price but a lower annualised purchase cost.

This doesn't automatically make Laptop B the better choice. You would still need to consider performance, maintenance, suitability and other costs.

However, it demonstrates why looking only at the initial price can lead to poor decisions.

The three es of value for money

One of the most widely used approaches to assessing Value for Money is known as the Three Es.

These are:

1. Economy.
2. Efficiency.
3. Effectiveness.

Each examines a different aspect of how resources are used.

Understanding the difference is essential because an organisation can perform well in one area but poorly in another.

1. Economy: are we buying resources at the right price?

Economy means obtaining the resources you need at an appropriate cost while maintaining the required quality.

It focuses on what an organisation buys and how much it pays.

For example, imagine a business needs to purchase 100 office chairs.

Three suppliers offer different prices:

Supplier A is the cheapest.

But before choosing it, the organisation should consider:

• Are the chairs suitable for employees?
• Do they meet relevant safety and ergonomic requirements?
• How long are they expected to last?
• What warranty is included?
• Are delivery and assembly included?
• Will they need replacing sooner?

If Supplier A's chairs are unsuitable or fail quickly, the apparent saving may disappear.

Good economy is about purchasing appropriate resources at a sensible price, not automatically selecting the lowest price.

How can organisations improve economy?

They can:

• Compare suppliers.
• Negotiate prices.
• Review contracts.
• Avoid unnecessary purchases.
• Consider quality and durability.
• Combine purchases where appropriate.
• Check whether existing resources can be used.

Remember: Economy is mainly concerned with the resources going into an activity.

2. Efficiency: are we using resources well?

Efficiency means producing the required work, goods or services with as little unnecessary waste as possible.

It looks at the relationship between resources used and what is produced.

Imagine two teams processing customer applications.

Both teams employ five people.

Team A processes 200 applications each week.

Team B processes 300 applications each week.

If the applications are comparable and both teams maintain the same quality, Team B is more productive.

However, suppose Team B processes applications faster because employees skip important checks.

This could lead to mistakes, complaints and additional work.

In that case, the apparent efficiency improvement may not represent good Value for Money.

How can organisations improve efficiency?

They might:

• Simplify administrative processes.
• Remove unnecessary duplication.
• Improve communication.
• Introduce appropriate technology.
• Reduce waiting times.
• Provide staff training.
• Improve scheduling.
• Use resources more effectively.

A simple efficiency example

A manager introduces an online booking system.

Previously, employees spent ten hours each week managing bookings manually.

After implementation, the process takes three hours.

The organisation saves seven hours of administrative work each week.

If the new system maintains or improves the quality of the booking process, this could represent an efficiency improvement.

However, the organisation should also consider the cost of the software and whether the time saved is used productively.

Remember: Efficiency is about how well resources are converted into work or services.

3. Effectiveness: are we achieving the intended results?

Effectiveness means achieving the outcomes or objectives you set out to achieve.

This is arguably the most important principle to understand.

An organisation can purchase resources cheaply and deliver activities efficiently, but if those activities do not achieve the intended results, overall Value for Money may still be poor.

Example: staff training

Imagine a company wants to improve customer service.

It purchases an inexpensive online course for £1,000.

One hundred employees complete the training.

From an efficiency perspective, the organisation has trained a large number of employees at a relatively low cost.

But what happens afterwards?

If customer complaints remain unchanged and employees continue making the same mistakes, the training may not have achieved its purpose.

Now imagine another course costs £3,000 but includes practical exercises, coaching and follow-up support.

Afterwards, customer complaints fall, employees report greater confidence and managers observe improvements in performance.

The more expensive course may provide better Value for Money because it achieves the intended outcome.

How can organisations improve effectiveness?

They can:

• Set clear objectives.
• Identify what success should look like.
• Measure outcomes.
• Collect feedback.
• Review performance.
• Make improvements based on evidence.
• Stop or redesign activities that aren't working.

Remember: Effectiveness is about whether the activity actually makes the difference you intended.

Understanding the three es together

The Three Es work together.

Think about organising a workplace training programme.

Economy: Did you purchase appropriate training at a reasonable price?

Efficiency: Was the training delivered without wasting time, money or resources?

Effectiveness: Did employees actually develop the knowledge or skills they needed?

A programme should be considered across all three areas.

Buying the cheapest training doesn't automatically represent good Value for Money.

Neither does delivering the largest number of training sessions.

What ultimately matters is whether the resources were used well and whether the intended benefits were achieved.

What are the four es of value for money?

Some organisations use an expanded framework called the Four Es.

This adds equity to economy, efficiency and effectiveness.

4. Equity: are resources and benefits distributed fairly?

Equity considers whether people can access services and benefits fairly, taking account of their different needs and circumstances.

This is particularly relevant in public services, education, healthcare and organisations serving diverse communities.

Example: workplace training

An organisation introduces a professional development programme.

All employees are technically allowed to attend.

However, the sessions take place only during normal office hours.

Employees working night shifts cannot participate.

Although the programme is available in principle, access is not equitable.

The organisation could improve equity by offering alternative session times, accessible learning materials or flexible online options.

Equity is not always about treating everyone identically

Different people may need different types of support to achieve comparable opportunities.

For example, an employee with a disability may require reasonable adjustments to participate in training.

Providing these adjustments can improve access and help the organisation achieve its intended outcomes.

Equity encourages organisations to ask:

• Who benefits from this spending?
• Who might be excluded?
• Are services accessible?
• Are resources reaching the people who need them?
• Are there barriers that could be removed?

Remember: Equity is about fairness in access, distribution and outcomes.

What are the five es of value for money?

Some frameworks use Five Es, adding cost-effectiveness as a separate consideration.

The five are:

1. Economy.
2. Efficiency.
3. Effectiveness.
4. Equity.
5. Cost-effectiveness.

The exact framework depends on the organisation and the purpose of the assessment. Some frameworks use three or four criteria, while others assess cost-effectiveness separately.

5. Cost-effectiveness: how much does it cost to achieve a result?

Cost-effectiveness compares the cost of an activity with the outcomes it achieves.

For example, imagine two programmes designed to help unemployed people find work.

Programme B costs more overall.

However, it achieves more employment outcomes at a lower cost per outcome.

On this measure, Programme B is more cost-effective.

But this is not necessarily the whole story.

You might also need to consider:

• Whether participants remained employed.
• The quality of the employment.
• Differences in participants' starting circumstances.
• Whether the programmes reached people facing greater barriers.
• Whether the outcomes would have happened without the programme.

A lower cost per outcome is useful evidence, but it does not automatically prove that an intervention offers the best overall Value for Money.

Inputs, activities, outputs and outcomes explained

These four terms are essential when assessing Value for Money.

They describe the journey from spending resources to achieving results.

Inputs

Inputs are the resources used.

Examples include money, staff time, equipment and facilities.

Activities

Activities are the work carried out using those resources.

Examples include delivering training, conducting assessments or providing support.

Outputs

Outputs are the immediate products or services delivered.

Examples include the number of training sessions delivered, applications processed or people supported.

Outcomes

Outcomes are the changes or benefits resulting from the activity.

Examples include improved employee performance, reduced errors, increased confidence or better customer satisfaction.

A practical example

Imagine an organisation invests £10,000 in leadership development.

The number of managers completing the programme is an output.

Improved management practice is an outcome.

This distinction matters because delivering an activity is not the same as achieving its intended benefit.

An organisation might deliver everything it promised but still fail to achieve meaningful improvements.

How to measure value for money

There isn't one universal formula that captures every aspect of Value for Money.

Instead, organisations use a combination of financial information, performance measures and professional judgement.

Here are several practical methods.

1. Cost per output

This measures the cost of delivering a unit of activity.

Formula:

Cost per output = Total cost ÷ Number of outputs

Example:

A training programme costs £4,000 and 80 employees complete it.

£4,000 ÷ 80 = £50 per employee trained.

This is useful for understanding delivery costs.

However, it doesn't tell you whether the training improved performance.

2. Cost per outcome

This measures the cost of achieving a particular result.

Formula:

Cost per outcome = Total cost ÷ Number of successful outcomes

Example:

A programme costs £12,000.

Thirty participants achieve the intended outcome.

£12,000 ÷ 30 = £400 per successful outcome.

This can help compare different approaches, provided the outcomes are genuinely comparable.

3. Return on investment (ROI)

Return on investment compares financial benefits with the cost of an investment.

Formula:

ROI (%) = (Financial benefit − Investment cost) ÷ Investment cost × 100

Example:

A business spends £5,000 on a new system.

It generates £8,000 in measurable financial benefits.

ROI = (£8,000 − £5,000) ÷ £5,000 × 100

ROI = 60%

This suggests a positive financial return.

However, the calculation is only as reliable as the figures used.

You should be clear about the period measured, what costs have been included and how the benefits were estimated.

Not all benefits can be expressed easily in money.

For example, improved employee wellbeing may be valuable even where a precise financial return is difficult to calculate.

4. Quality measures

Quality indicators help determine whether services meet the expected standard.

Examples include:

• Customer satisfaction.
• Error rates.
• Complaint levels.
• Inspection findings.
• Service reliability.
• Employee feedback.
• Compliance with required standards.

An organisation should avoid improving cost measures at the expense of essential quality.

5. Outcome measures

Outcome measures focus on the difference an activity makes.

Examples include:

• Improved staff retention.
• Increased learner achievement.
• Better customer satisfaction.
• Reduced accidents.
• Improved productivity.
• Greater service accessibility.

The right measure depends on the objective.

What is whole-life costing?

Whole-life costing means considering the total cost of something throughout the period it will be used.

It goes beyond the initial purchase price.

For example, buying a printer might involve:

• Purchase cost.
• Installation.
• Ink or toner.
• Paper.
• Maintenance.
• Electricity.
• Repairs.
• Replacement.
• Disposal.

A printer that costs £100 initially may be more expensive over three years than one costing £250 if it uses significantly more expensive ink.

Whole-life costing is particularly useful when purchasing:

• Technology.
• Vehicles.
• Equipment.
• Buildings.
• Software.
• Machinery.
• Long-term services.

It helps organisations avoid making decisions based only on short-term savings.

How to assess value for money step by step

You don't need to be a finance expert to undertake a basic Value for Money assessment.

The following seven steps provide a practical starting point.

Step 1: define what you're trying to achieve

Start with the objective.

What problem are you solving?

What result do you need?

For example:

"We want to reduce the time managers spend completing employee appraisals while maintaining the quality of feedback."

A clear objective makes it easier to assess whether spending is worthwhile.

Step 2: identify your options

Consider realistic alternatives.

These might include:

• Continuing with the current approach.
• Improving an existing process.
• Purchasing new technology.
• Outsourcing an activity.
• Providing additional training.
• Changing how work is organised.

Don't assume that buying something new is always necessary.

Sometimes improving an existing process provides better Value for Money.

Step 3: calculate the costs

Include all relevant costs, not just the purchase price.

Consider:

• Initial expenditure.
• Ongoing fees.
• Staff time.
• Training.
• Maintenance.
• Implementation.
• Support.
• Replacement.
• Potential exit costs.

Use the same assessment period when comparing options.

Step 4: identify expected benefits

Think about what each option should achieve.

Benefits might include:

• Time savings.
• Reduced expenditure.
• Better quality.
• Improved employee experience.
• Fewer mistakes.
• Increased capacity.
• Better compliance.
• Improved outcomes.

Some benefits will be measurable in money.

Others may require qualitative evidence.

Step 5: consider risks

Every option involves uncertainty.

For example:

• Will employees use the new system?
• Could implementation disrupt services?
• Is the supplier reliable?
• Could costs increase?
• Will the solution remain suitable as the organisation grows?

A low-cost option with a high risk of failure may represent poor Value for Money.

Step 6: compare the options

Review economy, efficiency, effectiveness and, where relevant, equity and cost-effectiveness.

You could use a simple comparison table.

You may also use a weighted scoring method where some criteria are more important than others.

For example, quality might account for 40% of the decision, cost 30%, usability 20% and support 10%.

Agree the criteria before scoring options wherever possible.

Step 7: review the results

Value for Money shouldn't be assessed only before a purchase.

Once the activity has been implemented, review what actually happened.

Ask:

• Did we achieve the intended results?
• Were the costs accurate?
• Did unexpected problems occur?
• Are employees or customers benefiting?
• Could the approach be improved?
• Would we make the same decision again?

This helps organisations learn from experience and improve future decisions.

A worked example: is a new workplace system good value for money?

Imagine a company with 50 employees currently uses spreadsheets to manage professional development records.

Managers spend approximately six hours each month updating records, chasing information and preparing reports.

The organisation is considering a new system costing £1,200 annually.

Step 1: calculate current administrative costs

Assume the relevant staff time costs the organisation £25 per hour.

Six hours × £25 = £150 per month.

£150 × 12 = £1,800 per year.

Step 2: estimate costs after implementation

The new system is expected to reduce administrative time to two hours per month.

Two hours × £25 = £50 per month.

£50 × 12 = £600 per year.

Add the annual software cost:

£600 + £1,200 = £1,800.

Step 3: compare the costs

On these assumptions, the new system does not produce a direct annual financial saving.

However, it might still provide additional benefits.

For example:

• Better access to CPD records.
• Fewer missing documents.
• Easier reporting.
• Improved employee experience.
• Reduced risk of administrative errors.
• More reliable information for management decisions.

These benefits may justify the investment.

Equally, the organisation should consider implementation time, training, data migration and whether the expected improvements actually occur.

The Value for Money decision depends on the overall benefits, not just whether the software costs less than the existing process.

All figures in this example are illustrative.

Value for money in different workplace settings

Value for money in education and training

Education providers may need to demonstrate that funding is being used appropriately and that learning programmes achieve worthwhile outcomes.

Relevant measures might include:

• Cost per learner.
• Learner attendance.
• Achievement and completion rates.
• Learner progression.
• Employment outcomes.
• Quality of teaching.
• Learner satisfaction.
• Accessibility and inclusion.

However, cost per learner should not be considered in isolation.

A programme supporting learners with significant additional needs may cost more but deliver important outcomes that would otherwise be difficult to achieve.

Value for money in healthcare

Healthcare organisations may consider:

• Treatment outcomes.
• Patient safety.
• Waiting times.
• Service accessibility.
• Staffing efficiency.
• Equipment costs.
• Patient experience.

A lower-cost service is not necessarily better value if it produces poorer outcomes or increases risks.

Value for money in charities

Charities often need to demonstrate how resources contribute to their charitable purposes.

They may examine:

• Cost per beneficiary.
• Number of people supported.
• Quality of services.
• Changes in beneficiaries' circumstances.
• Administrative efficiency.
• Long-term impact.

The number of people reached is useful, but it does not automatically demonstrate the quality or effectiveness of support.

Value for money in small businesses

Small businesses may focus on:

• Software subscriptions.
• Supplier contracts.
• Staff productivity.
• Equipment purchases.
• Marketing expenditure.
• Customer acquisition.
• Operational processes.

For example, a business might discover that an inexpensive marketing campaign generates many enquiries but very few paying customers.

A more expensive campaign that attracts fewer but better-qualified enquiries may provide better Value for Money.

Value for money in public services

Public organisations are expected to consider how resources are used to achieve public objectives.

Assessments may consider costs, benefits, risks, service quality and how outcomes are distributed across communities.

Public Value for Money can be more complicated than a simple financial return because services may create social benefits that cannot easily be expressed in pounds.

How to demonstrate value for money to managers, funders or governors

Making a good decision is one thing.

Being able to explain and evidence that decision is another.

A strong Value for Money report should answer five questions.

1. What were we trying to achieve?

Explain the objective and why it mattered.

2. What resources did we use?

Provide accurate information about expenditure, staff time and other relevant inputs.

3. What did we deliver?

Describe the activities and outputs.

4. What difference did it make?

Explain the outcomes, supported by evidence.

5. Was this a good use of resources?

Consider costs, quality, alternative approaches, risks and opportunities for improvement.

Example of a simple value for money statement

"Our organisation invested £8,000 in a new customer service training programme.

A total of 60 employees completed the training, representing a direct programme cost of approximately £133 per participant.

Following implementation, customer complaints reduced by 15% over the next three months.

Employee feedback also indicated increased confidence when handling difficult conversations.

Although the reduction in complaints cannot automatically be attributed entirely to the training, the findings provide encouraging evidence of improved performance.

We will continue monitoring complaints and customer satisfaction to assess whether these improvements are sustained."

This statement is stronger than simply saying:

"The training was good Value for Money because 60 employees attended."

It considers both expenditure and outcomes, while acknowledging uncertainty.

Common mistakes when assessing value for money

Choosing the cheapest option automatically

Low price does not guarantee good quality or long-term value.

Measuring activity rather than impact

Delivering 100 training sessions means little if the training doesn't achieve its purpose.

Ignoring staff time

Employee time has a cost, even where no additional payment is made.

Overlooking hidden costs

Implementation, maintenance, training and replacement can substantially affect total expenditure.

Using misleading comparisons

Two services may have different costs because they support different groups or deliver different levels of quality.

Comparisons should account for relevant differences.

Claiming savings that haven't happened

An expected saving is not the same as a realised saving.

For example, saving employees ten minutes each day doesn't automatically mean the organisation has reduced its expenditure.

Ignoring quality

Reducing expenditure by removing essential checks, support or safeguards may undermine the intended outcome.

Failing to review decisions

An option that represented good Value for Money when purchased may become less suitable as circumstances change.

Value for money checklist

Before making a significant workplace spending decision, consider the following questions.

• Have we clearly defined what we're trying to achieve?
• Have we considered realistic alternatives?
• Do we understand the full cost of each option?
• Have we considered quality and suitability?
• Are we making efficient use of resources?
• Do we know what successful outcomes look like?
• Have we considered accessibility and fairness?
• Have we identified relevant risks?
• Can we explain why our preferred option offers good value?
• Do we have a plan to measure the actual results?

You can use these questions for purchases, projects, training programmes, contracts and other workplace decisions.

Frequently asked questions about value for money

What does value for money mean in simple terms?

Value for Money means using resources wisely to achieve worthwhile results. It considers cost, quality and outcomes rather than simply choosing the cheapest option.

What are the three es of value for money?

The Three Es are economy, efficiency and effectiveness.

Economy considers purchasing resources at an appropriate price.

Efficiency considers how well resources are used.

Effectiveness considers whether the intended results are achieved.

What are the four es of value for money?

The Four Es are economy, efficiency, effectiveness and equity.

Equity considers whether benefits and services are distributed fairly and reach the people they are intended to support.

What are the five es of value for money?

Some frameworks use economy, efficiency, effectiveness, equity and cost-effectiveness.

The fifth element examines the relationship between the resources invested and the outcomes achieved.

Is value for money the same as cost-cutting?

No.

Cost-cutting focuses on reducing expenditure.

Value for Money focuses on making the best use of resources to achieve worthwhile outcomes.

Reducing costs can improve Value for Money, but not if essential quality or outcomes are lost.

Is the cheapest supplier always the best value?

No.

You should also consider quality, reliability, maintenance, suitability, risk and long-term costs.

Can value for money be measured?

Yes, although no single measure captures every aspect.

Organisations may use cost per output, cost per outcome, financial returns, quality indicators and evidence of impact.

What is the difference between efficiency and effectiveness?

Efficiency concerns how well resources are used to produce goods or services.

Effectiveness concerns whether those goods or services achieve the intended results.

An organisation can be efficient without being effective.

What is a value for money assessment?

A Value for Money assessment is a structured review of whether resources are being used appropriately to achieve the intended objectives.

It may involve comparing costs, benefits, quality, outcomes and risks.

What is a value for money audit?

A Value for Money audit examines how economically, efficiently and effectively resources have been used.

In the public sector, these audits can help identify opportunities to improve spending and service delivery.

Can something expensive represent good value for money?

Yes.

A higher-cost option may offer better long-term value if it lasts longer, produces better outcomes or reduces other costs.

Who is responsible for value for money in an organisation?

Responsibility depends on the organisation.

Senior leaders and governing bodies may have overall accountability, while managers, budget holders, procurement teams and employees contribute through their everyday decisions.

Final thoughts: value for money is about better decisions, not just lower costs

Value for Money is a simple concept with important implications.

Every organisation has limited resources, and every spending decision involves choices.

The goal is not necessarily to spend the least amount of money.

It's to make sure that the resources available are being used appropriately, efficiently and effectively to achieve meaningful results.

The Three Es provide a useful starting point:

Economy: Are we obtaining the right resources at the right price?

Efficiency: Are we making good use of those resources?

Effectiveness: Are we achieving the results we intended?

Where relevant, equity and cost-effectiveness provide further ways to assess whether resources are being used fairly and producing worthwhile outcomes.

The next time you're asked whether something represents good Value for Money, don't just look at the price.

Ask what it costs, what it delivers, what difference it makes and whether there's a better way to achieve the same objective.

That's how Value for Money becomes a practical workplace skill rather than just another management phrase.

Continue developing your professional skills

Understanding Value for Money can help you make more confident decisions, manage resources effectively and contribute to better workplace outcomes.

Explore WorkplaceHero's free workplace learning resources, practical guides and professional development tools.

You can also save this article to your WorkplaceHero Insights Library and return to it whenever you're preparing a business case, reviewing expenditure or making an important workplace decision.

Further reading and official guidance

• National Audit Office – About us and Value for Money
• HM Treasury – The Green Book
• HM Treasury – The Magenta Book
• Government Efficiency Framework
• Northern Ireland Audit Office – Value for Money Audit

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This guide provides general educational information about Value for Money. Formal assessments, public procurement decisions and grant-funded activities may be subject to additional organisational, contractual or regulatory requirements.