Technical Note on Efficiency Analysis

This Technical Note is a support to OEV’s EQAS system. All five of the standard OECD DAC evaluation criteria are embedded in EQAS, but there has been little specific guidance on efficiency, and its treatment in WFP evaluations has been patchy. This note therefore provides guidance for evaluation managers (EMs) and evaluation teams which should lead to more systematic and rigorous treatment of efficiency in future.
The Technical Note comprises the following sections:
? Section I defines and explains the efficiency criterion, and shows how it relates to other evaluation criteria, especially effectiveness.
? Section II is a concise guide to the eight tools for efficiency analysis which have been identified as most relevant for OEV work.
? Sections III, IV and V provide a more detailed explanation of three of the tools – Unit Cost Benchmarking, Cost-Effectiveness Analysis and Specific Evaluation Questions respectively.
? Annex A clarifies competing definitions of efficiency.
? In 0, five further tools are discussed – Cost-Benefit Analysis, Cost-Utility Analysis,
Multi-Attribute Decision Models, Benchmarking Other Indicators, and Follow the Money. These tools are somewhat too complex in data needs and time, or less relevant for use in typical OEV work, but may nevertheless sometimes be appropriate.
? A short bibliography provides suggestions for further reading.