Evaluation is the systematic and objective assessment of the design, implementation or results of a government program or activity for the purposes of continuous improvement, accountability and decision-making. It provides a structured and disciplined analysis of the value of policies, programs and activities at all stages of the policy cycle.
Commonwealth Evaluation Toolkit (Australian Centre for Evaluation)
Evaluation can take many forms. But ultimately, it means using evidence to make an informed judgement about the value or quality of something.
The Commonwealth Evaluation Policy principles outline that evaluations need to be:
- fit for purpose
- useful
- robust, ethical and culturally appropriate
- credible
- transparent where appropriate.
Monitoring is also an evaluative activity and an important part of the evaluation cycle. Monitoring involves regularly collecting data on the operation of a policy or program to assess how it is achieving its intent or objective.
What good evaluation looks like depends on several factors, including:
- the scale of the policy or program
- its risk
- strategic importance
- the context in which it operates (for example. ethical and cultural sensitivities).
It is also informed by what other assurance activities have been, or will be, undertaken.
The range of evaluation activities
The appropriate evaluation activities depend on the size and impact of the program.
Small, low impact programs
Data is collected under a monitoring and evaluation framework, where regular reporting and program health checks inform ongoing program development. The team responsible for delivering the program does this monitoring and evaluation.
Large programs with a broad impact across the economy
A formal impact evaluation assesses the program’s effectiveness and value for money. It is run independently to the program’s administration.
The evaluation may use several tools, including the program’s monitoring and evaluation framework and baseline data. These are established as part of evaluation planning at the start of the program and linked to the Policy Impact Analysis undertaken during policy design.
Evaluation may also include stakeholder surveys and a cost-benefit analysis to:
- determine if the program achieved its outcomes
- see if it had any other impacts (economic or otherwise),
- consider how the program could be improved
- provide lessons for future programs.
The strategy sets out how we will approach evaluation and which evaluation activity may be appropriate in different circumstances. More information is at Principle 2.2.
Why evaluation matters
Evaluation is an important part of developing and delivering evidence-based policy and programs. It is a foundational tool to support continuous improvement, good governance, risk management and accountability.
Good evaluation supports the department’s core purpose by helping us understand if our actions are having the intended effect. It helps us understand what works and what does not, for whom and why, and how we can improve the way we do things. Evaluation helps us understand and reflect on if the purpose of a government intervention has played out through the lived experience of those involved. It also helps us understand if this experience differed between cohorts.
Along with other assurance activities – such as impact analysis and internal and performance audits – evaluation maximises the value Australians receive from public funds and helps manage risks. It also creates an evidence base to inform future policy, program and operational decisions.
Evaluation is successful if it informs decisions that drive effective actions. The strategy supports high-quality evaluation that is fit for purpose and influential. It also aims to embed a culture of learning from experience throughout the department.