LAUSR

Evaluations of policies and programs often use a theory of change to articulate how the intervention is intended to function and the mechanisms by which it is supposed to generate outcomes. When an evaluation includes cost and efficiency considerations, economic and other concepts can be added to a theory of change to articulate a theory of value creation that articulates the mechanisms by which the intervention should use resources efficiently, effectively and create sufficient value to justify the resource use. This paper introduces some theories of value creation that are often implicit in program designs. Making these theories explicit can support clearer evaluative thinking about value for money - including specification of criteria and standards that are aligned with the theory, methods of inquiry that test the theory, and well-reasoned judgements that answer evaluative questions about value for money. Implications for evaluation practice will be discussed.