| Session Title: Cost Benefit Analyses in and of Evaluation |
| Multipaper Session 632 to be held in Liberty Ballroom Section A on Friday, November 9, 3:35 PM to 4:20 PM |
| Sponsored by the Costs, Effectiveness, Benefits, and Economics TIG |
| Chair(s): |
| Sarah Heinemeier, Compass Consulting Group, sarahhei@mindspring.com |
| Abstract: One reason evaluations typically are under-funded is that the cost-savings evaluation activities can generate are not clearly identified. Cost benefit analyses of evaluation activities demonstrate the economic value of evaluation and highlight the importance of focusing evaluation activities on rigorous methodologies and the collection of data relevant for decision making. Economic methodologies are becoming increasingly prominent in evaluation as evaluation methodologies broaden from a traditionally retrospective framework to a future-oriented, prospective framework. The prospective framework encourages evaluators and clients to collect data relevant for decision making; cost and benefit data often is included and utilized to further investigate and compare the effectiveness and efficiency of program alternatives. This panel session will discuss two aspects of cost benefit analysis in evaluation, the application of cost benefit analysis to evaluation and in evaluation, to promote utilization of economic methodologies as standard practice. |
| The Costs and Benefits of Conducting Evaluations |
| Sarah Heinemeier, Compass Consulting Group, sarahhei@mindspring.com |
| Amy Germuth, Compass Consulting Group, agermuth@mindspring.com |
| Anne D'Agostino, Compass Consulting Group, anne-d@mindspring.com |
| This paper presentation will share the costs and benefits of conducting evaluation for three projects. In the first project, a cost benefit analysis (CBA) was performed on an evaluation of a community health project. In the second, CBA was performed on a multi-year evaluation of an early childhood organization, and in the third the analysis was performed on a comprehensive evaluation of a workforce development program. In each case, an economic benefit was realized from evaluation activities; in not all cases, however, did the economic benefits exceed the costs. In this presentation, the authors will present their methodology (Boardman, et. al's 9 steps) and discuss key CBA challenges which included the need to plan for adequate and accurate cost and benefit data. Key recommendations include suggestions for including cost-benefit estimates in evaluation reporting, as a measure of evaluation's merit in improving efficiency and program effectiveness. |
| Integrating Cost Benefit and Effectiveness Analyses Into Comprehensive Evaluations |
| Sarah Heinemeier, Compass Consulting Group, sarahhei@mindspring.com |
| There are clear methodologies for conducting cost benefit and effectiveness analyses that often overlap with traditional evaluation methodology. Boardman et.al., (2005) established nine steps for conducting cost benefit and effectiveness analyses, including several that overlap with traditional evaluation methods such as identification of stakeholders, full delineation of program benefits, and creation of criteria for assessing value. This paper presentation will present these basic steps in tandem with traditional evaluation methods, and provide a case study of the integration of economic evaluation techniques into traditional evaluation activities. In this presentation, the case study focuses on a cost effectiveness comparison of similar early childhood education and child care activities provided by multiple organizations. The utility of cost effectiveness analyses as complementary to traditional techniques will be highlighted; limitations and notes of caution regarding utilization of cost data also will be discussed. |