What is it about?
A "theory of value creation" is a new and innovative addition to the field of program evaluation. It extends a theory of change to consider the mechanisms by which new, transformed or superior value is created from the resources consumed by a program. While a theory of change conceptualises programs as vehicles for 'making a difference', a theory of value creation views them as transformational processes that convert resources (funding, expertise, relationships, etc) into significant social value.
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Why is it important?
If we can define a program's value proposition, we are better placed to evaluate it. For example: To whom is it valuable? In what ways is it valuable? Through what mechanisms is such value created? What critical factors determine the extent to which resources are transformed into significant value?
Perspectives
My colleagues and I have found that defining a theory of value creation (or value proposition) helps us, and stakeholders, to reach a shared understanding of what 'value for money' means in their program. Articulating this understanding helps us to develop an evaluation framework that focuses on the most important aspects of a program's performance to assess its value for money - for example, contextual definitions of what it means for a program to run economically, deliver productively, create value effectively and cost-effectively, and distribute value equitably.
Julian King
University of Melbourne
Read the Original
This page is a summary of: Expanding theory-based evaluation: Incorporating value creation in a theory of change, Evaluation and Program Planning, December 2021, Elsevier,
DOI: 10.1016/j.evalprogplan.2021.101963.
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