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What is the main difference between external and internal evaluation?

Published in Program Evaluation Types 4 mins read

The main difference between external and internal evaluation lies in the source of the evaluators and, consequently, the objectivity, expertise, and operational integration of the assessment. While external evaluations offer an independent, fresh perspective, internal evaluations provide immediate, context-rich feedback.

Understanding External Evaluation

External evaluation is conducted by individuals or teams who are independent of the organization or program being evaluated. These can be consultants, research firms, or academic institutions.

  • Key Characteristics:
    • Impartiality and Objectivity: External evaluators are less likely to have pre-existing biases or vested interests, ensuring a more objective assessment of program strengths, weaknesses, and outcomes.
    • Specialized Expertise: External consultants can bring in specialized expertise and extensive experience in evaluation methodologies, as well as in specific technical areas relevant to the program being assessed. This can be particularly valuable for complex or niche projects.
    • Credibility: Findings from an external evaluation often carry greater credibility, especially when shared with stakeholders, funders, or the public, due to the perceived independence of the evaluators.
    • Broader Perspective: They can offer a fresh set of eyes, identifying issues or solutions that internal staff might overlook due to familiarity or ingrained perspectives.
    • Examples:
      • A government agency hiring an independent firm to assess the impact of a new public health initiative.
      • A non-profit organization contracting an external consultant to evaluate the effectiveness of its flagship community program to satisfy donor requirements.

Understanding Internal Evaluation

Internal evaluation is performed by individuals or teams within the organization that is running the program being evaluated. This could be dedicated evaluation staff, program managers, or other employees.

  • Key Characteristics:
    • Contextual Knowledge: Internal evaluators possess an inherent understanding of the organization's culture, history, operations, and political landscape, which can facilitate data collection and interpretation.
    • Cost-Effectiveness: Often more budget-friendly than external evaluations, as it leverages existing staff and resources.
    • Rapidity and Responsiveness: Internal evaluations tend to be light and quick, excelling at providing immediate and direct feedback that can be rapidly incorporated into ongoing operations or program adjustments.
    • Increased Buy-in: Program staff may be more receptive to findings from internal colleagues, potentially leading to smoother implementation of recommendations.
    • Examples:
      • A company's HR department conducting a survey to gather immediate feedback on a new employee training program.
      • A project team assessing the efficiency of a newly implemented internal process to identify immediate bottlenecks.

Comparative Overview: External vs. Internal Evaluation

Feature External Evaluation Internal Evaluation
Evaluator Independent individuals or firms from outside the organization. Staff members or teams within the organization.
Objectivity High; unbiased perspective, less influenced by internal politics. Moderate to Low; potential for bias due to familiarity or vested interests.
Expertise Can bring specialized and diverse expertise in evaluation methodologies and technical areas. Deep contextual knowledge of the organization, but may lack specialized evaluation skills.
Credibility High, particularly with external stakeholders and funders. Moderate, primarily within the organization.
Cost Typically higher due to consultant fees and external resource costs. Generally lower, leveraging existing staff and resources.
Speed/Feedback Can be more time-consuming; findings are usually presented after comprehensive analysis. Often quicker and more agile; provides immediate and direct feedback for rapid adjustments.
Purpose Often used for accountability, high-stakes decisions, or demonstrating impact to external parties. Primarily for learning, process improvement, and informing ongoing program management.
Organizational Knowledge Limited initial understanding; requires time to grasp internal dynamics. Extensive pre-existing knowledge of the organization's culture, processes, and history.
Recommendations May offer innovative, out-of-the-box solutions; sometimes harder to implement without internal championing. Practical, context-aware recommendations; often easier to implement due to internal understanding and ownership.

When to Choose Which

The choice between external and internal evaluation often depends on the specific purpose, available resources, and the context of the evaluation.

  • Opt for External Evaluation when:

    • Impartiality and credibility are paramount (e.g., for major funding decisions, accountability to stakeholders, or public reporting).
    • Specialized technical or evaluation expertise is required that isn't available internally.
    • There's a need for a fresh, independent perspective free from internal biases.
    • The evaluation involves sensitive or politically charged issues.
    • Looking to benchmark against industry standards or best practices.
  • Opt for Internal Evaluation when:

    • Quick, actionable feedback is needed for immediate program adjustments or continuous improvement.
    • Budget constraints are a significant factor.
    • The program is small, short-term, or involves routine internal processes.
    • Deep contextual understanding and organizational buy-in are crucial for the evaluation's success and the implementation of findings.
    • The primary goal is organizational learning and capacity building.

In many cases, a hybrid approach, combining elements of both external and internal evaluation, can leverage the strengths of each, offering both objective insights and contextual relevance.