Determining the Cost of Program Evaluation: Factors and Considerations
When embarking on a program evaluation, the cost can vary significantly based on the context, objective, and budgetary constraints. Understanding how to effectively determine the cost of a program evaluation is crucial for the success of any evaluation project.
The Importance of Budgetary Determination
The budget for conducting an evaluation is often determined by a number of factors. One critical aspect is the financial preparedness of the sponsoring agency or the agency that requests the study. They fix the cost of the evaluation as part of their program budget. Subsequently, you need to decide on the evaluation design and implementation methods based on the budget allocated.
If there is no set evaluation budget, it is essential to provide a cost scope in your response. It is important not to underestimate the scope and expertise required. Consider submitting two budget options in your proposal, giving the funders the flexibility to choose between a more comprehensive and costly option.
Typical Breakdown of Program Evaluation Costs
Upfront costs typically amount to 20-25% of the total budget. This includes expenses related to purchasing office items, equipment, recorders, hosting gatherings, and training costs. The remaining portion is allocated for the evaluation activities, including data collection, analysis, and reporting.
The cost of a program evaluation is closely tied to the program objectives, participant size, and the scope of the evaluation. It is crucial to consider whether you can measure these objectives and the changes over time. As a general guideline, at least 10% of any program's budget should be allocated for evaluation. For example, a study with a budget of $1.1 million over 5 years should allocate $110,000, or $22,000 annually, towards evaluation.
Factors Influencing the Cost of Program Evaluation
The cost of conducting a program evaluation can vary widely depending on various factors, such as the context of the program, the evaluators' role, the methodology used, data collection methods, and the timeline for completion. These factors need to be carefully considered to ensure the evaluation remains within budget.
For instance, as an internal or external evaluator, the approach and resources required can differ significantly. If you are an internal evaluator, you might have a better understanding of the organization's structure and operations, potentially reducing the costs. However, if you are an external evaluator, you may need to invest more time and resources in understanding the program and collaborating with the organization's staff.
Another factor is the choice of evaluation methods and data collection techniques. Online surveys and quantitative data collection methods are often less expensive than in-depth qualitative interviews. Additionally, the timeline for the evaluation will also impact the budget, as evaluations that need to be completed quickly may require more resources.
Examples and Insights
In my experience, conducting evaluations in academic and business contexts differs significantly. In academic settings, the focus often lies on the epistemological assumptions guiding the choice of methodology and data collection. The selection of a sample and the research design are also critically important. In contrast, business evaluation seems to have different contextual demands. However, I am an outsider to this type of program evaluation, and as such, my understanding is from a broader perspective.
A personal example from my academic experience includes conducting program evaluations as a student or research assistant, where the evaluation was a course requirement, and the total cost was about $200. This was despite the significant amount of time and effort required to complete the evaluation. It highlights the necessity of recognizing the true value of evaluation work, both in terms of time and resources.
From the corporate sector, evaluations focus more on the practical aspects of monitoring and improving organizational performance. These evaluations often require a deeper understanding of business processes and metrics.
Conclusion
Understanding the cost factors involved in program evaluation is essential for planning and executing successful evaluations. By considering the various elements that affect budget and cost, you can ensure that your evaluation project is both feasible and effective.