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Internal evaluation is the use by an organization of evaluators who are employees of that organization to evaluate the organization's own programs. During the last decade, internal evaluation has grown rapidly worldwide. In North America, internal evaluation is estimated to account for between half and three quarters of all evaluations.

There are three characteristics that distinguish internal evaluations from external evaluations:

  • The primary responsibility for internal evaluation lies with the organization itself. Internal evaluation is viewed as an essential tool for managers and an integral part of the management process.
  • The issues addressed by internal evaluation are the concerns of the managers, staff, and clients of the organization. In contrast, the focus of external evaluations typically are the concerns of persons outside of the organization; for example, policy makers or funding bodies.
  • Internal evaluators are directly accountable to the organization they are evaluating, whereas external evaluators are independent of the organization they are evaluating.

Strengths and Weaknesses of Internal Evaluation

Within the organizational context, internal evaluation has many strengths. The relationships that internal evaluators build over time enable them to reduce the anxiety and fear often associated with external evaluations. As staff members of an organization, internal evaluators tend to know more about the organization's programs, organizational context, and political processes. This knowledge allows them to select evaluation strategies that fit the unique characteristics of their situation and to have their findings accepted more readily. Internal evaluators can become a valued corporate resource by communicating relevant evaluation findings in a timely fashion, supplying crucial evaluation information for strategy planning and policy decisions, creating a “corporate memory,” and building an evaluation culture.

The major weakness of internal evaluation is that it is perceived as being less objective. This perception may be crucial when there are financial or legal concerns and when accountability is a major focus. The pitfalls of internal evaluation, however, can be largely overcome by careful attention to evaluation methodology and by strategies such as having an external evaluator validate the internal evaluation process.

Roles of Internal Evaluation

Internal evaluation is an applied research activity that supports organizational development and learning. To accomplish this mission, internal evaluators need to assume proactive and challenging roles that include identifying best practices, identifying organizational factors that influence performance, and monitoring the implementation of solutions based on evaluation findings. They need to avoid negative roles such as those of number cruncher, whistleblower, or spy for senior management.

Models of Internal Evaluation

There are several popular internal evaluation models. The “internal departmental” is a common model in larger organizations that have a separate internal evaluation unit. The head of this unit usually reports directly to the chief executive or senior vice-president of the organization, thereby giving the unit significant independence and influence. A second model is the “embedded” internal evaluation function. In this model, managers or project team leaders carry parttime evaluation responsibility. They are part of the team and use evaluation to strengthen programs by identifying potential problems and monitoring implementation. A third model is the “hybrid” that couples the skills and objectivity of an external evaluator with the organizational savvy of internal evaluators.

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