Assessing Value for Money: the Oxford Policy Management Approach
New: Second Edition of our popular guide
For eight years now, I’ve been collaborating with Oxford Policy Management (OPM), a global consultancy working to improve lives through sustainable policy change in low- and middle-income countries. I’m proud of our work together, which centres on informing good resource allocation decisions for development impact through better value for money (VfM) assessment.
More than just applying the right methods and tools, our approach to VfM also involves expanding mindsets - for example:
Thinking beyond measurement to meaningful evaluation, using explicit criteria and standards for clarity and transparency
Thinking beyond indicators alone to mixed methods evidence, to understand and communicate the story behind the numbers
Thinking beyond proving to improving, using each VfM assessment as an opportunity for learning and adaptation.
We published our first guide to assessing value for money in 2018, making our approach available to anyone who wants to ensure good use of resources to create value for people and the planet. It’s had the impact we hoped for. And of course, we’ve continued to learn and grow our knowledge and experience in applying the approach. Now, I’m excited to share our Second Edition of the guide.
This new edition builds on the original guide
It adds:
More recent examples and lessons learned from applying the approach in different settings
A new section providing more detailed guidance on developing VfM criteria and standards
New guidance on integrating VfM assessment with evaluations and with monitoring, evaluation and learning (MEL) systems.
Traditional approaches to VfM assessment often fall short
Development specialists, policy and program evaluators, and decision-makers recognise the importance of VfM questions but also acknowledge how challenging they can be to answer. Traditional approaches often fall short by being:
Accountability-focused, missing opportunities for reflection, learning, adaptation and improvement
Simplistic, ignoring the complexities of real-world interventions
Focused on scrutinising costs at the expense of long-term value creation
Tied to a narrow set of indicators devoid of any evaluative judgement, risking quantifiable factors overshadowing more nuanced consideration of quality, value and importance
Donor-centric, neglecting perspectives crucial to the communities that are supposed to benefit from a policy or program.
Our approach addresses these challenges
Developed through doctoral research, including case studies of OPM-led programs, this approach:
Treats VfM assessment as evaluation, using rubrics (program-specific definitions of good VfM) to support sound evaluative judgements, allowing scrutiny of both evidence and reasoning
Combines theory and practice from evaluation and economics, recognising the complementary insights both disciplines bring to VfM
Shares power with stakeholders to collaboratively develop VfM frameworks that encompass the program’s value proposition from multiple perspectives
Coordinates VfM assessment with broader MEL systems for coherence and efficiency
Incorporates both quantitative and qualitative evidence for a richer understanding than indicators alone provide.
Our guide complements and builds on existing recommendations from organisations like FCDO, ICAI, NAO and Itad, incorporating familiar elements like the 5Es (economy, efficiency, effectiveness, cost-effectiveness, and equity). Our approach doesn’t replace existing methods but offers a framework for aligning methods and tools to provide clear answers to VfM questions.
VfM assessment is crucial for good resource allocation decisions and maximising aid and development impact. Our approach supports the use of VfM assessments to inform reflection, learning, and building the evidence base about good resource use in different contexts.
Download a copy of the new Guide
King, J., Wate, D., Namukasa, E., Hurrell, A., Hansford, F., Ward, P., Faramarzifar, S. (2023). Assessing Value for Money: the Oxford Policy Management Approach. Second Edition. Oxford Policy Management Ltd.