A Fundamental Choice: Internal or External Evaluation?

An organisation wishes to evaluate one of its programs. It can ask a staff member or hire someone outside the organisation. Which should it choose? Surprisingly little guidance is available for this common scenario. A review of 30 texts dealing with organisational performance and evaluation shows that too often the issue is assumed one way or the other. Management texts aimed at business and organisational audiences tend to presume that evaluation is conducted by internal evaluators, usually managers. By contrast the specialist evaluation literature almost always proceeds from the opposite assumption: that evaluation is undertaken by external evaluators. This paper proposes a series of measures for comparing the strengths and weaknesses of internal and external evaluators. These include cost, knowledge, flexibility, objectivity, accountability, willingness to criticise, ethics and utilisation of results. A set of guidelines is offered to assist organisations in choosing between internal and external evaluation in each particular case.