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2009AUSTRALASIAN EVALUATION SOCIETY INC.
AWARDS FOR EXCELLENCE IN EVALUATION 2009
“There is nothing more difficult to take in hand,
more perilous to conduct, or more uncertain in
its success, than to take the lead in the
introduction of a new order of things!”
Machiavelli
CATEGORY: BEST EVALUATION POLICY AND SYSTEMS AWARD
Meat & Livestock Australia (MLA) & The Centre for International Economics (CIE)
MEASURING THE VALUE
OF MLA PROGRAMS
“Learning by doing”
1
BACKGROUND
As Australia’s premier research and marketing enterprise for the Australian red meat
industry, Meat & Livestock Australia Ltd’s (MLA’s) core activities are: working to improve
market access, building demand for Australian red meat, conducting research and
development (R&D) to provide competitive advantages from paddock to plate, and
partnering with industry to build capability.
MLA is majority funded by compulsory livestock transaction levies, processor levies and
matching government funds for R&D work. Other income is generated through activities
such as commercialisation of R&D and partnering with industry participants. Currently the
red meat and livestock industry is valued at $16 billion per annum.
MLA has constantly sought ways to more accurately and consistently measure and
report the benefits and costs of its activities. Periodically, since its inception in 1998, MLA
conducted ex-ante and ex-post evaluations using a distinct evaluation approach for each
program, however this led to infrequent communication that was not meaningful for key
stakeholders.
The largest single contributor to MLA R&D programs is the Australian Government,
through matching R&D contributions. The Australian Government is increasingly calling on all
Research & Development Corporations (RDCs) to account for the public investment in their
programs, requesting verifiable triple bottom line information on R&D program benefits in
relation to National Research Priorities.
Although interest in measuring the value of MLA programs had stemmed mainly from
the Australian Government, there is also evidence of a growing focus on accountability
among industry stakeholders.
By 2005, when MLA had been in existence for six years, the MLA Board deemed it
appropriate to systematically assess the value of much of its work.
An evaluation strategy was required for analysis of the net benefits of each program
within a coordinated structure capable of identifying new monitoring and measurement
parameters going forward.
MLA subsequently developed a comprehensive framework for program evaluation
across its diverse marketing, market access and R&D programs. (See appendix, Why Does
MLA Need A Framework For Independent Evaluation, for a detailed description.)
“Rigorous evaluation across MLA’s RD and
marketing programs ensures the net impact of
MLA programs can be determined in terms of
industry and wider community benefits.”
“Peer review at various levels has informed
the development of an evaluation framework
that fosters greater understanding by program
managers and increased engagement with key
stakeholders.”
LiveCorp program managers aligning programs
with strategies.
Sheepmeat councillors participate in peer review of
the counterfactual scenario.
2
The MLA Executive Committee developed the
following criteria for judging the successful
development and implementation of an evaluation
framework that would meet this challenge. The
Executive Committee pronounced that:
1. A SATISFACTORY EVALUATION
FRAMEWORK WOULD:
 be appropriate for the consistent evaluation of
marketing, market access and RD programs
 be appropriate for triple bottom line analysis to
evaluate program outcomes against traditional cost-
benefit benchmarks and wider societal/environmental
considerations
 be sensitive to the influence of the program lifecycle
on evaluation processes and criteria
 be comparable between ex-ante and ex-post
evaluations
 permit easy identification of key parameters and
methodologies for ongoing monitoring and
measurement of program Key Performance Indicators
(KPIs)
 be rigorous, with all evaluations conducted using this
framework standing up to scrutiny from both
Government and industry
 represent a transparent approach, with any
measurement techniques applied also being
transparent
 be simple and comprehensible to MLA stakeholders
 be an efficient evaluation process that does not drain
resources.
2. A SATISFACTORY CORPORATE
LEARNING OUTCOME WOULD BE
EVIDENT WHEN:
 program managers demonstrate awareness of the
benefits of using the framework to identify and monitor
more appropriate program KPIs
 program managers demonstrate an understanding of
the rules that dictate where equivalent evaluation
approaches should be used in marketing, market
access and RD programs, and where there should be
departures from this equivalent approach
 program managers demonstrate an understanding of
how information on program evaluation can best be
incorporated into program proposals
 program managers demonstrate an understanding of
how to establish appropriate measurement and
monitoring procedures to allow effective and consistent
evaluation of new programs
 program managers demonstrate a sense of framework
ownership and a willingness to use it in all ongoing
work.
3. A SATISFACTORY STAKEHOLDER
COMMUNICATION OUTCOME
WOULD BE DEMONSTRATED BY:
 a sample set of communication brochures that
illustrates how to communicate the outcomes of a
program evaluation in simple and relevant terms to
various external key stakeholder groups as
nominated by the program manager
 presentation of program evaluation outputs in terms
that are relevant and understandable to internal
stakeholders at various levels including: program
investors, MLA executives, other program
managers and personnel at individual project
levels.
Meat  Livestock austraLia

evaluationseries
Eating quality
The industry impact
2.1 improving eating
quality
MLA_Eat_Quality.indd 1 22/8/07 5:16:40 PM
Meat  Livestock austraLia

evaluationseries
Food safety:
predictive microbiology
The industry impact
1.1 enhancing product
integrity
MLA_Food_Safety.indd 1 22/8/07 5:18:06 PM
Meat  Livestock austraLia

evaluationseries
Market access
The industry impact
1.2 Maintaining and
liberalising access to
world meat markets
MLA_Market _Access.indd 1 25/1/08 2:51:01 PM
evaluationseries
Red meat nutrition
marketing
The industry impact
2.2 Enhancing the
nutritional reputation
of red meat
MLA_RedMeatNutri.2.2.indd 1 9/02/09 1:59 PM
3
SITUATION
ANALYSIS
“Sustainability can be enhanced by
increasing …transparency and by
implementing sound monitoring and
evaluating performance systems. This
assures not only continued funding but
also probably attracts additional sources
of funding.”  (International Service
 for National Agricultural Research)
In an increasingly tight funding environment
intensified by international economic decline,
RDCs are challenged by growing competition for
a share of the public funding pool.
The possibility that Australian Government
policymakers and industry investors could follow
other countries, who have adopted competitive
funding mechanisms to redirect priorities,
increase accountability and reduce costs, has
placed greater pressure on RDCs to demonstrate
a favourable return on stakeholder investment in
light of their responsibility “to ensure funding is
allocated to achieve the highest return possible”1
.
The imperative for RDCs to justify their
worth escalates the need for transparency and
heightened communication with key sponsors
including the Australian Government and peak
industry bodies.
While MLA recognises that such
communication is dependent on a consistent
body of knowledge that can only be collected
through thorough evaluation, a system to
appraise its performance did not exist prior to
2005, hampering efforts to demonstrate
accountability to key investors and alignment
with the Australian Government’s National
Research Priorities2
and Rural Research and
Development Priorities3
.
The organisation perceived the situation as a
key chance to address this weakness and
assume a competitive posture.
MLA drew on its strengths: a professional
internal resource base committed to program
improvement (effectiveness, efficiency and triple
bottom line benefits4
); and external expertise in
evaluation management, engaging the CIE to
assist its development of an evaluation
framework that could withstand – and would
welcome – intense scrutiny of its programs.
1
MLA Program Evaluation Strategy 2007-10, MLA
2
Department of Education, Employment and Workplace Relations 2003, Australian
Government
3
Department of Agriculture, Fisheries and Forestry 2007, Australian Government
4
Atkinson, Dr L 2008, ‘The evaluator as change agent in history: challenges and
strategies for success’, Australasian Evaluation Society Inc. paper delivered on
September 12, 2008
LiveCorp program manager presenting KPIs. Kate Roberts presenting to program managers on Social Impact Assessment.
“We have common need for reliable
information in directing our investment and
need to continue discussion on this issue.”
 – Professor Beth Woods,
 Assistant Director-General Innovation,
 Primary Industries and Fisheries,
 Queensland Department of Employment,
 Economic Development and Innovation
“I have been telling them (other
stakeholders) about what we and MLA did
(ex-post evaluation), in the lamb industry,
and how interesting and useful it was”
 – Geoff Kroker,
 Manager Strategy Development
 Victorian Department of
 Primary Industries
4
Broad Goal
Purpose
Next Users
End Users
Partners/
Collaborators
NARRATIVE SUMMARY
Build  maintain stakeholder
confidence in MLA
1.	 Reporting to Government
2.	 Engagement with industry
stakeholders
3.	 Guiding future investment
4.	 Building a culture managing for
outcomes
MLA Staff:
•	 MLA Board
•	 Managing Director
•	 Executive Committee
•	 Program Managers
Target Stakeholder Audiences:
•	 Federal Minister
•	 Parliamentary Secretary
•	 Australian Government
Department of Agriculture,
Fisheries and Forestry (including
agencies)
•	 Politicians
•	 Policy makers
•	 CRRDCC Secretariat
•	 Other RDCs
•	 Peak Industry Councils
•	 Industry Associations
•	 Producer Groups
•	 Industry Leaders
•	 Industry cynics
Evaluation Collaborators:
•	 Service Providers
•	 Other RDCs
•	 CRRDCC Secretariat
•	 PIC EDs  staff
•	 Other RDCs
•	 Federal  State Government Staff
MEANS OF VERIFICATION
•	 MLA Membership register
•	 Membership survey
•	 Feedback at AGM
•	 Annual review of Annual
Operating Plan (AOP) by PICs
•	 CRRDCC reporting  feedback
•	 Levels of co-investment,
collaboration, and alignment with
NRPs as reported in Annual
Report
• 	 Regular independent meta-
analysis of the results arising from
the framework.
•	 Results reported using a
scorecard for tracking progress
towards stated purpose and
objectives.
•	 Improvement in the alignment of
AOP KPIs and industry outcome
measures.
•	 Extent of alignment is peer
reviewed by MLA and PIC staff on
an annual basis.
•	 Regular survey of target audience
members in Governments, PICs,
and CRRDCC to assess value of
information
•	 Collection of evidence that
information has been used in
press releases, speeches, reports,
and policy documents.
•	 Evidence of shared and endorsed
ex-ante reviews
•	 Evidence of shared and endorsed
ex-post reviews
•	 Evidence of commitment to and
co-investment in collaborative
evaluation frameworks
MEASURABLE INDICATORS
•	 Membership numbers
•	 Membership satisfaction
•	 PIC support for MLA
•	 On-going support for levy
•	 On-going co-investment in RD
by Australian Government
•	 Collaboration between RDCs
1. Reporting to Government
a.	 Simple  Relevant
b.	 Meeting compliance requirements
c.	 Independent  objective
d.	 Understandable  Useful for
Policy
2. Engagement with industry
stakeholders
a.	 Meeting member expectations
b.	 Simple  Relevant
c.	 Understandable  Useful for
Policy
3. Guiding future investment
a.	 Consistent across programs
b.	 Triple bottom line reporting
c.	 Used to better understand the
value add arising from leveraging
d.	 Comparable ex-ante to ex-post
4. Building a culture managing for
outcomes
a.	 Staff have easy access training
b.	 Outcome KPIs developed 
reported
c.	 Measurement is transparent 
objective
d.	 MERI is resource efficient
e.	 Use of program logic in program
planning
f.	 Understandable  Useful for
Program improvement
g.	 Staff are rewarded
h.	 Expert verification
•	 Recorded evidence of program
improvement
•	 Value of evaluation results as an
input into decision making and
policy development by both
industry and Government
•	 All partners participate in the
development of the program logic
for all collaborative programs.
•	 All partners endorse and support
the inclusion of measurement 
evaluation activities in to program
design in order to meet the data
needs of the evaluation
framework
ASSUMPTIONS
•	 Australian Government continues
to demand evaluation reporting
for continued support of the RDC
model
•	 PICs and Producers continue to
demand evaluation reporting to
support the RDC model
•	 There is no catastrophic disruption
to supply or market access
•	 Other RDCs continue to remain
open to collaboration and
committed to harmonisation of
evaluation reporting
•	 On-going support from the MLA
Executive Committee for the MLA
Program evaluation Strategy 2007
– 10
•	 PIC staff and resources will be
available to undertake these
reviews.
•	 That the current hard copy and
web based versions of the
evaluation results continue to
reach target audiences.
•	 The target stakeholder audiences
have a capability to interpret and
use results from evaluations.
•	 Evaluation capacity building
remains a high priority for all
partners and collaborators.
•	 Evaluation framework is efficient
and does not become a drain on
program resources.
‘People-Focused’ Logic for Capacity building projects: Dr Jess Dart, Workshop # 8, AES Conference 2005
LOGICAL FRAMEWORK MATRIX FOR ADOPTION
OF EVALUATION AT MLA (DART, 2005)
5
The MLA Program Evaluation Strategy 2007-10
and the supporting program evaluation schedule
drive the evaluation process at MLA (see table
right). These are reviewed and agreed with the
MLA Executive team, on an annual basis.
The core lines of inquiry for the evaluation
framework are best summed up in MLA’s five
key evaluation questions. It is important that
these questions are sensitive to the influence of
the program lifecycle:
 Are MLA programs adding value?
 Are MLA’s collaborations efficient and effective?
 Does MLA facilitate innovation from concept
through to commercialisation?
 Does MLA facilitate increased industry
capability and investment in innovation?
 Is MLA identifying – and correctly managing
– industry risk?1
 1
MLA Program Evaluation Strategy 2007-10, MLA
IMPLEMENTATION
IDENTIFYING OPPORTUNITIES FOR PROGRAM IMPROVEMENT
ACROSS THE PROGRAM EVALUATION LIFECYCLE
The diagram illustrates how the MLA framework and specific business/corporate
functions support programs throughout their various program evaluation lifecycle stages:
ENGAGEMENT:
Ex-post
analysis
INPUT:
Ex-ante
review
OUTPUT:
AOP* KPI
Review
OUTCOME:
Monitor 
Report
BUSINESS SERVICES
• Commercialise/Adopt
• Corporate Communications
CORPORATE SERVICES
• Evaluation
• SAP/Finance/Contracts
ALL MLA PROGRAMS HAVE LIFECYCLES
KPI
ENGAGEMENT
IMPACT
TIME
Early indicators
e.g Investment +
engagement levels
Progress
- Ongoing engagement
- Satisfaction
- Project progress
Outputs
- Workshops
- Technology
- POS material
Potential benefit quantified
Awareness
Capability to adopt
Adoption
Measure impact
Adoption 
benefit realised
KPI
OUTPUT
KPI
INPUT
KPI
OUTCOME
MLA EVALUATION SCHEDULE
*AOP: Annual Operating Plan
	 2007	 2008	 2009	 2010
Enhancing product integrity 1.1	 			
Maintaining and liberalising access
to world meat markets 1.2	 			
Improving eating quality 2.1	 
Enhancing the nutritional reputation
of red meat 2.2		 	
Aggressive promotion in the
market place (sheep) 2.5		 
Increasing cost efficiency and
productivity – on farm 3.1		 
Aggressive promotion in the market
place (beef) 2.5		 	 
Improving industry and market
information 3.3		 	 
Ensuring sustainability 3.4		 	 
Developing new markets and
products (beef) 2.3				 
Developing new markets and
products (sheep) 2.3				 
Promoting industry integrity (beef) 2.4				 
6
ASSESSMENT
“Over time every MLA program will
be subject to thorough, independent
evaluation. This process imposes a
new discipline on the company. …It is
recognised that all staff need to share
and benefit from the evaluation process.
It is the responsibility of the Executive
and Managing Director to illustrate and
drive those benefits through the
company [and] this will be acted on.”
 David Palmer,
 MD MLA, 4 December 2008
Effective implementation of the framework is
facilitated by ensuring that the principles of the
MLA Evaluation Framework are aligned with the
company’s values, vision and strategy.
The table below summarises the challenges and
issues that have arisen during the implementation
phase. MLA management has responded with
strategies to increase the effectiveness of the
change management process, build evaluation
capacity, and create a more evaluation-focused
organisational culture.
These strategies have included: learning on the
job, using a ‘people-focused program logic’
approach to implement the framework, creating a
cross-functional team to champion
implementation, engaging key stakeholders,
linking outcomes to employee performance
measures, and leveraging off the Australasian
Evaluation Society (AES) network of expertise.
SUMMARY OF CHALLENGES  TACTICS FOR CHANGE
CHALLENGES TO CHANGE SUCCESSFUL CHANGE TACTICS
1. Making the complex
simple
1. Alignment with MLA values, vision,
and strategy
2. Embedding a focus
on outcomes
2. Engaging key stakeholders in
setting better outcome KPIs
3. Maintaining independence and
consistency across programs
3. Engaging the Executive
Committee
4. Building evaluation
capability
4. Creating cross-functional teams,
learning by doing, reflecting
5. Developing a learning culture 5. Creating layers of independence
and transparency
SHARED GOALS
MEAT INDUSTRY
STRATEGIC
PLAN
GOVERNMENT
RESEARCH
PRIORITIES
INDUSTRY CONSULTATION PROCESS
MLA STRATEGIC PLAN
ANNUAL OPERATING PLAN
PROGRAMS
SUB PROGRAMS
WORK PLAN
STAFF PERFORMANCE PLANS
Linking evaluation with strategy
Meat  Livestock austraLia

Why does MLA need
a framework for
independent
evaluation?
7
QUALITY
EX-POST EVALUATION
APPROVAL PROCESS
MLA needs credible, rigorous and consistent
evaluation procedures across the entire range of
its RD and marketing programs to ensure
program assessments can effectively determine
the net impact of MLA programs in terms of both
industry and wider community benefits.
Each year the Executive Committee determines
the major ex-post evaluations that will make a
significant contribution towards meeting
objectives of the independent company
performance review scheduled for 2010. These
appraisals are subject to a scrupulous planning
and reporting process to ensure consistent, high
quality information is provided to program
managers to assist decision-making. The
following flow chart demonstrates the approval
process that supports this approach.
MLA EX-POST EVALUATION APPROVAL PROCESS
Approval of proposed MLA Program Evaluation Schedule
Manager Evaluation  Program Improvement works with relevant
program managers to develop evaluation proposals
Evaluation team develops evaluation proposal
Independent expert verification team
Program Manager forms the evaluation team
Evaluation team develops the evaluation plan
Data collection  analysis
Evaluation team develops draft evaluation report
Independent expert verification team
Evaluation brochure is published and communicated as appropriate
NO
NO
NO
NO
NO
YES
YES
YES
YES
YES
Manager Evaluation
Executive Committee
Executive Committee
8
LEADING EDGE
The MLA Evaluation Framework embodies three
simple principles which guide program
managers in their development of individual
program KPIs.
These are consistent with the Council of Rural
Research and Development Corporations’ Chairs
(CRRDCC) evaluation guidelines and are based on
the Commonwealth Department of Finance and
Administration approach to program evaluation:
1Setting a baseline - establishing the change
in industry and public benefits that would
occur if MLA does nothing.
2Showing evidence of causality – providing
the evidence that proves MLA program
outcomes have led to more industry and public
benefits when compared to the baseline.
3Attribution – estimating the proportion of
additional benefits that can be reasonably
attributed to the contribution made by MLA
programs relative to other influencing factors.
These three simple principles are generic. They
are valid in every context within which MLA
programs operate. They can be consistently
applied using either a ‘bottoms up’ or ‘tops
down’ evaluation approach.
‘Bottoms up’ is always the preferred way to
conduct ex-post evaluations. This approach is
based on reviewing the theory of action for the
program and the observed changes in the
relevant KPI measures compared to the baseline.
This evidence is then used to substantiate the
benefits claimed by the program. It is a very
transparent process and any claims arising can
withstand close scrutiny:
 because the baselines are produced using real
data;
 because there is clear evidence of causal links
between program outcomes and observed
changes in industry performance; and
 because the theory of action means that
MLA’s role is well understood and therefore
attribution is more objective.
The decision to go ‘tops down’ for an ex-post
evaluation is normally due to a combination of
factors such as: a lack of evidence linking
program outcomes (e.g. adoption figures) to the
benefits being claimed by the program; and/or
situations in which a large number of parties has
contributed to the achievement of claimed
benefits, such as a multi-RDC project.
Unfortunately, although it often turns out to be
the only practical option, the ‘tops down’
approach to ex-post evaluation is perceived to be
more arbitrary and less transparent than the
‘bottoms up’ approach:
 because establishment of the baseline is
reliant on industry expert opinion;
 because causal linkages between program
outcomes and observed changes in industry
performance are based solely on justified
assumptions;
 because there is a need to test attribution
assumptions using a sensitivity analysis such
as breakeven modelling; and
 because multi-party collaboration means that
attribution has to be negotiated and therefore
is usually a very subjective process.
There have been numerous issues and lessons
arising from the application of the MLA
Evaluation Framework to the programs evaluated
so far:
 limited evidence for causal linkage between
program outcomes and observed industry impact
for both marketing and research;
 negotiating the attribution of observed
industry benefits across key stakeholder
contributions.
Framework implementation has been an
evolutionary ‘learning by doing’ process. Peer
review at various levels (detailed under ‘Quality’)
has informed the framework’s refinement and
improvement. This iterative approach has
culminated in the development of a framework
that can be adapted so as to be fit for purpose
(i.e. marketing vis-à-vis market access vis-à-vis
RD), while maintaining the rigour, transparency,
simplicity and resource efficiency necessary to
allow increased understanding by program
managers and engagement with relevant
stakeholders.
9
CONTRIBUTION
TO KNOWLEDGE
The CRRDCC released a set of “Guidelines for
Evaluation” in May 2007 which were revised in
May 2009.
The guidelines assist evaluation of the impact of
RD programs funded by RDCs and were
established by the CRRDCC to report to
Government on the:
 collective returns from RDCs to industry
 collective public and spillover returns from
RDCs
 public and spillover returns that are conditional
on public contributions to RDCs.
It is intended that the processes and procedures
set out in the CRRDCC framework will represent
the minimum evaluation requirement of each
RDC. A systematic evaluation of a sample of
investments will constitute an ‘evaluation’ pool
and an analysis of the overall economic, social
and environmental returns is provided on an
annual basis.
EFFECTIVENESS
The discipline behind the process of negotiating
attribution of benefits to program stakeholders
has had the greatest impact on MLA staff and
MLA investment partners.
The MLA Evaluation Framework process for
apportioning benefits across program
stakeholders typically:
a. considers what other stakeholders were
involved;
b. considers the contribution of other
stakeholders; and
c. rules that the total estimate should incorporate
all stakeholders involved and add up to 100
per cent.
The process of determining attribution involves
verification with all program stakeholders.
EQUITY
MLA has adopted the Australasian Guidelines for
the Ethical Conduct of Evaluation (see http://
www.aes.asn.au/). These guidelines are
consistent with the current MLA Code of
Business Conduct  Ethics (2006), but can be
specifically applied to the execution of the
evaluation work plan outlined in the MLA
evaluation strategy 2007 – 2010.
One of the key objectives of the MLA Evaluation
Framework is to enable an outcomes-focused
performance culture that rewards measurement
and achievement of KPIs.
An effective evaluation framework provides
findings that can be used for program decision-
making, program improvement and optimal
resource allocation. Moreover, it empowers MLA
staff to further sharpen the focus on achieving
real outcomes that align with the objectives of
the MLA Strategic Plan 2008 – 2012 (detailed
under Assessment).
The MLA Executive  Senior Managers Forum is
a recent initiative that is partly the result of
implementation of the evaluation framework (see
diagram below). Its objectives are to:
1Ensure all staff gain a broader understanding
of, and have greater input into, the company’s
objectives and activities
2Ensure alignment of industry and government
priorities with MLA strategy and program
implementation
3Ensure program measures align with MLA
strategy measures to allow clear reporting to
stakeholders.
Implementation of the evaluation work schedule
promotes a collaborative culture of robust
program review and improvement within MLA. It
will allow successes to be rewarded and
replicated, and facilitate knowledge-share of
lessons learned. This enables changes that
underpin MLA’s continuous improvement in the
delivery of its programs and services.
The MLA Strategic Plan 2008 – 2012 works in
concert with this evaluation work schedule to
deliver a culture of collaborative inquiry and
participative reflection within MLA and with our
investment partners.
ProjObjectives
Activity KPIs
Contracted
Activities
MLA measures
AOP Objective KPIs
Strategy 1
Strategy 2
Strategy 3
Strategy n
AOP Strategy
Strategy KPIs
Projects
Industry Outcomes
MLA measure KPIs
Each KPIsfor AOP
Objectives
Accumulate
(Over 5 years)
KPIs Cascading Down –
from industry outcome to Strategic Plan
to AOP to project to contract activity
KPIs Cascading Up – from the Project
to AOP to Strategic Plan levels
Improving MLA governance through
strategic alignment of KPIs
10
USE OF INTERNAL AND
EXTERNAL RESOURCES
The role of external evaluators (typically the CIE) is to
conduct evaluation in a way that builds the capacity of MLA
by supporting the evaluation team during any or all of the
evaluation phases. This role includes:
 facilitating the scope  scale of the evaluation
 advising on appropriate data sources and methods of
collection
 designing and implementing various data collection
tools and instruments
 drafting the evaluation report.
Using internal staff in evaluations brings corporate
knowledge of both the program and MLA into the evaluation
process. Internal teams have the advantage of being able to
quickly modify the design of an evaluation when it becomes
apparent that an evaluation activity is not working.
Using external evaluators brings specific expertise in
evaluation design, data collection and analysis or reporting
to the evaluation. External evaluators also bring
independence to the process.
The ex-post evaluations of most MLA programs are
conducted by CIE. The program manager is required to
manage the process to ensure that the findings and lessons
learned are relevant and useful. This involves actively
negotiating the evaluation plan with the contractor/consultant,
monitoring data collection and analysis, and approving the final
evaluation report in consultation with the independent expert
verification team and the Executive Committee.
The activity diagram above illustrates the context and
interaction between each of the components of a successful
evaluation framework at MLA. It illustrates that reporting to
government and engagement with peak industry
councils/industry – the function of the MLA evaluation
brochure series – contribute to the overarching objective of
building and maintaining stakeholder confidence in MLA.
Program improvement is an equally important
outcome of the framework. Its embodiment will be observed
as guiding improvement in future investment strategy and
the creation of a more outcomes-focused management
culture at MLA.
The program evaluation schedule is now past the
half-way mark and there are very promising signs of sustained
program improvement at MLA (e.g. adoption of program logic
for planning etc.).
The chart above illustrates the results of a subjective
assessment against criteria for MLA’s progress towards
desired reporting and program improvement outcomes. The
comparison between 2005 and 2008 suggests good progress
has been made, particularly with respect to reporting to the
Australian Government.
CONCLUSION
We will know that we have been successful when:
 evaluations are meaningful to end-users
 MLA staff manage for outcomes
 evaluation is core to MLA values.
In essence, implementation of the MLA Evaluation
Framework has been all about establishing patterns of
behaviour that permit learning and reflection to occur:
 At the strategic level – the evaluation strategy sets the
timeframe and processes for learning and reflection.
Human knowledge is deeply contextual; it is triggered by
circumstance and need, and is revealed in action.
“We only need to know what we know when we need to
know it”.
 At an operational level – there is a range of ‘learning
by doing’ processes that work both in series and
parallel. These begin with development of an evaluation
proposal for approval by the Executive Committee and
finish with final production, stakeholder/peer review
workshop, and approval of the evaluation brochure by
the MLA Board.
The role of MLA’s Manager Evaluation  Program
Improvement is to work with each of the relevant
stakeholders (guided by people-focused program logic,
detailed on p4) to facilitate the adoption of these patterns of
behaviour.
There is strong evidence that attitudes are gradually
changing and an evaluative culture is beginning to emerge.
This is not an ‘all of company at the same time’ approach,
but rather a ‘bit by bit – program by program’ evolution
unfolding over the course of the evaluation strategy’s
implementation.
SUSTAINABILITY
Culture
managing
foroutcomes
MLA Board
Evaluation reporting Program improvement
Reporting
to
Government
Guiding
future
investment
Stakeholder
confidence in
MLA
AOP KPI
Report
Engagement
with
PICs/industry
KPI
Reporting
Baselines 
measurement
Context and interactions of evaluation at MLA
Levels of achievement for
framework objectives*
Ideal
Culture managing
for outcomes
Usefulness as a guide
for future investment
Satisfactory PIC
Response
Satisfactory Government
Response
0% 20% 40% 60% 80% 100%
MLA 2005
100%
25%
25%
25%
25%
32%
33%
42%
56%
MLA 2008
*2005 levels represents compliance with minimum statutory requirements.
i
APPENDIX
MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION
PAGE 1
Meat  Livestock austraLia

Why does MLA need
a framework for
independent
evaluation?
ii
 Meat  Livestock austraLia
introduction
Performance evaluation is a critical success factor that allows
Meat  Livestock australia (MLa) to demonstrate its delivery
of world-class services and solutions in partnership with the
red meat industry and government.
in 2005 MLa engaged the centre for international economics
(cie) to conduct an independent review of the way MLa
evaluated its performance and consequently developed
a more effective evaluation framework. implementing the
recommendations of this review ensures accountability to
stakeholders including red meat producers (MLa members),
the red meat industry, peak industry bodies, third party
investment partners, and the commonwealth Government.
the framework allows MLa to assess the industry impact of
its programs and their compliance with government priorities.
assessing actual program outcomes against the principal
goals – to build demand, increase market access, develop
competitive advantage and build industry capability – is
called ex-post evaluation. it enables MLa to report back to
management and to be answerable to stakeholders.
assessing anticipated program outcomes against goals is
called ex-ante evaluation, and this helps MLa to predict the
impact of its programs in advance.
independent evaluation of programs across MLa’s portfolio
of work is essential to accountability and supports internal
management of activities, helping to ensure that a learning
process is instilled within MLa. Backing this is an evaluation
work schedule developed by MLa to ensure that the
framework is consistently applied across all programs and
that it involves both ex-post and ex-ante evaluation.
the framework will also report on alignment of MLa program
outcomes with the new rural research and Development
Priorities, which complement and are informed by the
australian Government’s National research Priorities.
Why Does
MLa NeeD a
fraMeWork for
iNDePeNDeNt
evaLuatioN?
APPENDIX
MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION
PAGE 2
iii
Meat  Livestock austraLia

how does the MLa framework for
independent evaluation work?
MLa programs are evaluated at various stages throughout their lifecycle
for their efficiency, economy and effectiveness in
achieving objectives based on established
criteria. each stage has specific implications
for the level and type of evaluation.
evaluation also depends on the program’s
reporting requirements.
Beyond the basic indicators – inputs and
outputs – the MLa evaluation framework traces
outcomes, impacts and benefits, providing
a comprehensive assessment of program
performance (chart 1).
a set of objectives is derived from the australian
red Meat industry strategic Plan 2004-2009 and
MLa’s own strategic planning processes.
these program or project objectives
determine the inputs required to achieve the
objectives. Monitoring inputs – investment
Objectives
Market
returns
Benefit-cost
ratio
Triple bottom line
Environmental Social
Inputs
Outputs
Outcomes
KPIs
Integrated
framework
Chart 1: Program evaluation overview
Benefits to stakeholders
Program evaluation is important for several reasons:
1. Responsibility for investing funds on behalf of the industry.
MLa makes investments today to produce future benefits. to ensure funding
is allocated to achieve the highest return possible, MLa must evaluate
programs ex-ante to determine the expected program benefits or pay-offs
and to draw comparisons.
2. Efficient operation.
efficient operation is dependent on effective project management, which can
only be achieved with program monitoring and evaluation.
3. Learning from the experience of different programs.
evaluation allows MLa to learn both from successful programs and from
those which need further improvement. the accumulated knowledge
provides insights that enable funding allocations to be channelled into higher
pay-off areas across MLa’s range of activities.
four key criteria ensure the evaluation
is robust:
1. Consistency across programs – this
ensures programs can be compared
and allows MLa to consistently apply
its evaluation framework across the entire
program lifecycle and across all programs.
2. Calculation of marginal return from investments – this involves
determining whether or not funds can be transferred from one program
to another to achieve a higher overall return from the total investment
in MLa’s activities.
3. Declaration of the key assumptions – this allows a ‘counterfactual’
case to be established which determines what would have happened in
the absence of outcomes generated by the program.
4. Estimation of the spill-over benefits arising from program
outcomes – this measures the indirect benefits enjoyed by consumers,
the community and other enterprises outside the industry value chain.
APPENDIX
MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION
PAGE 3
iv
Financial model
Assessment and
ranking of benefit
Chart 2: Integrated framework
Value chain model Global trade model
Other triple bottom line:
• environmental
• social
Integrated framework
Quantifiable
Not
quantifiable
costs or total dollars spent – at this level produces simple key performance
indicators (kPis) that are valuable for short-term project management and
monitoring.
inputs lead to outputs – tangible results of inputs, such as the number
of butchers trained in better meat display – and these provide another
opportunity to develop clear kPis that measure the quality of the output, not
just whether it was achieved.
outputs lead to outcomes – the changes in practice or behaviour resulting
from adoption of outputs, such as increased sales and ultimately better
returns to producers attributable to improved butcher training. outcome
kPis measure adoption as well as resulting changes, and measure the extent
to which expected results are achieved. Deriving outcomes often requires
detailed knowledge about both consumer and producer behaviour, and
involves translating outputs into the key differences they make to industry
supply and demand relationships. in the case of food safety or animal
welfare, the evaluation process translates the output into a risk reduction.
once a supply, demand or risk outcome is identified, it is possible, through
the integrated framework, to quantify the benefits and costs to the industry
that can be aggregated across programs (chart 2).
the environmental and social outcome components of the triple bottom line
can sometimes be quantified and included formally in program cost and
benefit assessments. however they are often not quantifiable, particularly in
dollars. such benefits are reported qualitatively in case studies.
for MLa to meet its evaluation requirements it must have a thorough
appreciation of how the red meat industry interacts. there are four key
elements to ensure the evaluation framework accounts for these interactions:
1. A value-chain model of the industry
2. MLA’s global meat industries model
3. A framework to handle triple bottom line
environmental and social issues
4. A financial model (to calculate net present
values of benefit-cost ratio streams) that
allows the effectiveness of the current MLA
portfolio to be evaluated against what
could be achieved if it was reallocated to
maximise MLA’s return on its total
investment budget.
further information
• For access to the MLA Program Evaluation
Framework manual, the MLA Strategic Plan
2007-2011 or information on MLA programs,
visit the MLA website: www.mla.com.au
• To download More From Less: the Strategic
Direction for the Australian Red Meat Industry
2004-2009, visit the Red Meat Advisory
Council website: www.rmac.com.au
• The Council of Rural Research and
Development Corporation Chair Guidelines
for Evaluation are available on the Rural RDC
website: www.ruralrdc.com.au
Level 1, 165 Walker St,
North Sydney NSW 2060
AUSTRALIA
Tel +61 2 9463 9333
Fax +61 2 9463 9393
www.mla.com.au
Published by Meat  Livestock Australia Limited
ABN 39 081 678 364
August 2007
© Meat  Livestock Australia (2007)
ISBN 9781741911626
Disclaimer: Where possible care is taken to ensure the
accuracy of the information contained in this publication.
However MLA cannot accept responsibility for the accuracy
or completeness of the information or opinions contained in
the publication. You should make your own enquiries before
making decisions concerning your interests.
Reproduction in whole or part of this publication is
prohibited without prior consent and acknowledgment of
Meat  Livestock Australia.
Meat  Livestock Australia acknowledges the matching funds provided by the Australian Government to support the research and development detailed in this publication.
APPENDIX
MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION
PAGE 4

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AES_CIE_MLA_final

  • 1. 2009AUSTRALASIAN EVALUATION SOCIETY INC. AWARDS FOR EXCELLENCE IN EVALUATION 2009 “There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things!” Machiavelli CATEGORY: BEST EVALUATION POLICY AND SYSTEMS AWARD Meat & Livestock Australia (MLA) & The Centre for International Economics (CIE) MEASURING THE VALUE OF MLA PROGRAMS “Learning by doing”
  • 2. 1 BACKGROUND As Australia’s premier research and marketing enterprise for the Australian red meat industry, Meat & Livestock Australia Ltd’s (MLA’s) core activities are: working to improve market access, building demand for Australian red meat, conducting research and development (R&D) to provide competitive advantages from paddock to plate, and partnering with industry to build capability. MLA is majority funded by compulsory livestock transaction levies, processor levies and matching government funds for R&D work. Other income is generated through activities such as commercialisation of R&D and partnering with industry participants. Currently the red meat and livestock industry is valued at $16 billion per annum. MLA has constantly sought ways to more accurately and consistently measure and report the benefits and costs of its activities. Periodically, since its inception in 1998, MLA conducted ex-ante and ex-post evaluations using a distinct evaluation approach for each program, however this led to infrequent communication that was not meaningful for key stakeholders. The largest single contributor to MLA R&D programs is the Australian Government, through matching R&D contributions. The Australian Government is increasingly calling on all Research & Development Corporations (RDCs) to account for the public investment in their programs, requesting verifiable triple bottom line information on R&D program benefits in relation to National Research Priorities. Although interest in measuring the value of MLA programs had stemmed mainly from the Australian Government, there is also evidence of a growing focus on accountability among industry stakeholders. By 2005, when MLA had been in existence for six years, the MLA Board deemed it appropriate to systematically assess the value of much of its work. An evaluation strategy was required for analysis of the net benefits of each program within a coordinated structure capable of identifying new monitoring and measurement parameters going forward. MLA subsequently developed a comprehensive framework for program evaluation across its diverse marketing, market access and R&D programs. (See appendix, Why Does MLA Need A Framework For Independent Evaluation, for a detailed description.) “Rigorous evaluation across MLA’s RD and marketing programs ensures the net impact of MLA programs can be determined in terms of industry and wider community benefits.” “Peer review at various levels has informed the development of an evaluation framework that fosters greater understanding by program managers and increased engagement with key stakeholders.” LiveCorp program managers aligning programs with strategies. Sheepmeat councillors participate in peer review of the counterfactual scenario.
  • 3. 2 The MLA Executive Committee developed the following criteria for judging the successful development and implementation of an evaluation framework that would meet this challenge. The Executive Committee pronounced that: 1. A SATISFACTORY EVALUATION FRAMEWORK WOULD:  be appropriate for the consistent evaluation of marketing, market access and RD programs  be appropriate for triple bottom line analysis to evaluate program outcomes against traditional cost- benefit benchmarks and wider societal/environmental considerations  be sensitive to the influence of the program lifecycle on evaluation processes and criteria  be comparable between ex-ante and ex-post evaluations  permit easy identification of key parameters and methodologies for ongoing monitoring and measurement of program Key Performance Indicators (KPIs)  be rigorous, with all evaluations conducted using this framework standing up to scrutiny from both Government and industry  represent a transparent approach, with any measurement techniques applied also being transparent  be simple and comprehensible to MLA stakeholders  be an efficient evaluation process that does not drain resources. 2. A SATISFACTORY CORPORATE LEARNING OUTCOME WOULD BE EVIDENT WHEN:  program managers demonstrate awareness of the benefits of using the framework to identify and monitor more appropriate program KPIs  program managers demonstrate an understanding of the rules that dictate where equivalent evaluation approaches should be used in marketing, market access and RD programs, and where there should be departures from this equivalent approach  program managers demonstrate an understanding of how information on program evaluation can best be incorporated into program proposals  program managers demonstrate an understanding of how to establish appropriate measurement and monitoring procedures to allow effective and consistent evaluation of new programs  program managers demonstrate a sense of framework ownership and a willingness to use it in all ongoing work. 3. A SATISFACTORY STAKEHOLDER COMMUNICATION OUTCOME WOULD BE DEMONSTRATED BY:  a sample set of communication brochures that illustrates how to communicate the outcomes of a program evaluation in simple and relevant terms to various external key stakeholder groups as nominated by the program manager  presentation of program evaluation outputs in terms that are relevant and understandable to internal stakeholders at various levels including: program investors, MLA executives, other program managers and personnel at individual project levels. Meat Livestock austraLia evaluationseries Eating quality The industry impact 2.1 improving eating quality MLA_Eat_Quality.indd 1 22/8/07 5:16:40 PM Meat Livestock austraLia evaluationseries Food safety: predictive microbiology The industry impact 1.1 enhancing product integrity MLA_Food_Safety.indd 1 22/8/07 5:18:06 PM Meat Livestock austraLia evaluationseries Market access The industry impact 1.2 Maintaining and liberalising access to world meat markets MLA_Market _Access.indd 1 25/1/08 2:51:01 PM evaluationseries Red meat nutrition marketing The industry impact 2.2 Enhancing the nutritional reputation of red meat MLA_RedMeatNutri.2.2.indd 1 9/02/09 1:59 PM
  • 4. 3 SITUATION ANALYSIS “Sustainability can be enhanced by increasing …transparency and by implementing sound monitoring and evaluating performance systems. This assures not only continued funding but also probably attracts additional sources of funding.” (International Service for National Agricultural Research) In an increasingly tight funding environment intensified by international economic decline, RDCs are challenged by growing competition for a share of the public funding pool. The possibility that Australian Government policymakers and industry investors could follow other countries, who have adopted competitive funding mechanisms to redirect priorities, increase accountability and reduce costs, has placed greater pressure on RDCs to demonstrate a favourable return on stakeholder investment in light of their responsibility “to ensure funding is allocated to achieve the highest return possible”1 . The imperative for RDCs to justify their worth escalates the need for transparency and heightened communication with key sponsors including the Australian Government and peak industry bodies. While MLA recognises that such communication is dependent on a consistent body of knowledge that can only be collected through thorough evaluation, a system to appraise its performance did not exist prior to 2005, hampering efforts to demonstrate accountability to key investors and alignment with the Australian Government’s National Research Priorities2 and Rural Research and Development Priorities3 . The organisation perceived the situation as a key chance to address this weakness and assume a competitive posture. MLA drew on its strengths: a professional internal resource base committed to program improvement (effectiveness, efficiency and triple bottom line benefits4 ); and external expertise in evaluation management, engaging the CIE to assist its development of an evaluation framework that could withstand – and would welcome – intense scrutiny of its programs. 1 MLA Program Evaluation Strategy 2007-10, MLA 2 Department of Education, Employment and Workplace Relations 2003, Australian Government 3 Department of Agriculture, Fisheries and Forestry 2007, Australian Government 4 Atkinson, Dr L 2008, ‘The evaluator as change agent in history: challenges and strategies for success’, Australasian Evaluation Society Inc. paper delivered on September 12, 2008 LiveCorp program manager presenting KPIs. Kate Roberts presenting to program managers on Social Impact Assessment. “We have common need for reliable information in directing our investment and need to continue discussion on this issue.” – Professor Beth Woods, Assistant Director-General Innovation, Primary Industries and Fisheries, Queensland Department of Employment, Economic Development and Innovation “I have been telling them (other stakeholders) about what we and MLA did (ex-post evaluation), in the lamb industry, and how interesting and useful it was” – Geoff Kroker, Manager Strategy Development Victorian Department of Primary Industries
  • 5. 4 Broad Goal Purpose Next Users End Users Partners/ Collaborators NARRATIVE SUMMARY Build maintain stakeholder confidence in MLA 1. Reporting to Government 2. Engagement with industry stakeholders 3. Guiding future investment 4. Building a culture managing for outcomes MLA Staff: • MLA Board • Managing Director • Executive Committee • Program Managers Target Stakeholder Audiences: • Federal Minister • Parliamentary Secretary • Australian Government Department of Agriculture, Fisheries and Forestry (including agencies) • Politicians • Policy makers • CRRDCC Secretariat • Other RDCs • Peak Industry Councils • Industry Associations • Producer Groups • Industry Leaders • Industry cynics Evaluation Collaborators: • Service Providers • Other RDCs • CRRDCC Secretariat • PIC EDs staff • Other RDCs • Federal State Government Staff MEANS OF VERIFICATION • MLA Membership register • Membership survey • Feedback at AGM • Annual review of Annual Operating Plan (AOP) by PICs • CRRDCC reporting feedback • Levels of co-investment, collaboration, and alignment with NRPs as reported in Annual Report • Regular independent meta- analysis of the results arising from the framework. • Results reported using a scorecard for tracking progress towards stated purpose and objectives. • Improvement in the alignment of AOP KPIs and industry outcome measures. • Extent of alignment is peer reviewed by MLA and PIC staff on an annual basis. • Regular survey of target audience members in Governments, PICs, and CRRDCC to assess value of information • Collection of evidence that information has been used in press releases, speeches, reports, and policy documents. • Evidence of shared and endorsed ex-ante reviews • Evidence of shared and endorsed ex-post reviews • Evidence of commitment to and co-investment in collaborative evaluation frameworks MEASURABLE INDICATORS • Membership numbers • Membership satisfaction • PIC support for MLA • On-going support for levy • On-going co-investment in RD by Australian Government • Collaboration between RDCs 1. Reporting to Government a. Simple Relevant b. Meeting compliance requirements c. Independent objective d. Understandable Useful for Policy 2. Engagement with industry stakeholders a. Meeting member expectations b. Simple Relevant c. Understandable Useful for Policy 3. Guiding future investment a. Consistent across programs b. Triple bottom line reporting c. Used to better understand the value add arising from leveraging d. Comparable ex-ante to ex-post 4. Building a culture managing for outcomes a. Staff have easy access training b. Outcome KPIs developed reported c. Measurement is transparent objective d. MERI is resource efficient e. Use of program logic in program planning f. Understandable Useful for Program improvement g. Staff are rewarded h. Expert verification • Recorded evidence of program improvement • Value of evaluation results as an input into decision making and policy development by both industry and Government • All partners participate in the development of the program logic for all collaborative programs. • All partners endorse and support the inclusion of measurement evaluation activities in to program design in order to meet the data needs of the evaluation framework ASSUMPTIONS • Australian Government continues to demand evaluation reporting for continued support of the RDC model • PICs and Producers continue to demand evaluation reporting to support the RDC model • There is no catastrophic disruption to supply or market access • Other RDCs continue to remain open to collaboration and committed to harmonisation of evaluation reporting • On-going support from the MLA Executive Committee for the MLA Program evaluation Strategy 2007 – 10 • PIC staff and resources will be available to undertake these reviews. • That the current hard copy and web based versions of the evaluation results continue to reach target audiences. • The target stakeholder audiences have a capability to interpret and use results from evaluations. • Evaluation capacity building remains a high priority for all partners and collaborators. • Evaluation framework is efficient and does not become a drain on program resources. ‘People-Focused’ Logic for Capacity building projects: Dr Jess Dart, Workshop # 8, AES Conference 2005 LOGICAL FRAMEWORK MATRIX FOR ADOPTION OF EVALUATION AT MLA (DART, 2005)
  • 6. 5 The MLA Program Evaluation Strategy 2007-10 and the supporting program evaluation schedule drive the evaluation process at MLA (see table right). These are reviewed and agreed with the MLA Executive team, on an annual basis. The core lines of inquiry for the evaluation framework are best summed up in MLA’s five key evaluation questions. It is important that these questions are sensitive to the influence of the program lifecycle:  Are MLA programs adding value?  Are MLA’s collaborations efficient and effective?  Does MLA facilitate innovation from concept through to commercialisation?  Does MLA facilitate increased industry capability and investment in innovation?  Is MLA identifying – and correctly managing – industry risk?1 1 MLA Program Evaluation Strategy 2007-10, MLA IMPLEMENTATION IDENTIFYING OPPORTUNITIES FOR PROGRAM IMPROVEMENT ACROSS THE PROGRAM EVALUATION LIFECYCLE The diagram illustrates how the MLA framework and specific business/corporate functions support programs throughout their various program evaluation lifecycle stages: ENGAGEMENT: Ex-post analysis INPUT: Ex-ante review OUTPUT: AOP* KPI Review OUTCOME: Monitor Report BUSINESS SERVICES • Commercialise/Adopt • Corporate Communications CORPORATE SERVICES • Evaluation • SAP/Finance/Contracts ALL MLA PROGRAMS HAVE LIFECYCLES KPI ENGAGEMENT IMPACT TIME Early indicators e.g Investment + engagement levels Progress - Ongoing engagement - Satisfaction - Project progress Outputs - Workshops - Technology - POS material Potential benefit quantified Awareness Capability to adopt Adoption Measure impact Adoption benefit realised KPI OUTPUT KPI INPUT KPI OUTCOME MLA EVALUATION SCHEDULE *AOP: Annual Operating Plan 2007 2008 2009 2010 Enhancing product integrity 1.1  Maintaining and liberalising access to world meat markets 1.2  Improving eating quality 2.1  Enhancing the nutritional reputation of red meat 2.2  Aggressive promotion in the market place (sheep) 2.5  Increasing cost efficiency and productivity – on farm 3.1  Aggressive promotion in the market place (beef) 2.5   Improving industry and market information 3.3   Ensuring sustainability 3.4   Developing new markets and products (beef) 2.3  Developing new markets and products (sheep) 2.3  Promoting industry integrity (beef) 2.4 
  • 7. 6 ASSESSMENT “Over time every MLA program will be subject to thorough, independent evaluation. This process imposes a new discipline on the company. …It is recognised that all staff need to share and benefit from the evaluation process. It is the responsibility of the Executive and Managing Director to illustrate and drive those benefits through the company [and] this will be acted on.” David Palmer, MD MLA, 4 December 2008 Effective implementation of the framework is facilitated by ensuring that the principles of the MLA Evaluation Framework are aligned with the company’s values, vision and strategy. The table below summarises the challenges and issues that have arisen during the implementation phase. MLA management has responded with strategies to increase the effectiveness of the change management process, build evaluation capacity, and create a more evaluation-focused organisational culture. These strategies have included: learning on the job, using a ‘people-focused program logic’ approach to implement the framework, creating a cross-functional team to champion implementation, engaging key stakeholders, linking outcomes to employee performance measures, and leveraging off the Australasian Evaluation Society (AES) network of expertise. SUMMARY OF CHALLENGES TACTICS FOR CHANGE CHALLENGES TO CHANGE SUCCESSFUL CHANGE TACTICS 1. Making the complex simple 1. Alignment with MLA values, vision, and strategy 2. Embedding a focus on outcomes 2. Engaging key stakeholders in setting better outcome KPIs 3. Maintaining independence and consistency across programs 3. Engaging the Executive Committee 4. Building evaluation capability 4. Creating cross-functional teams, learning by doing, reflecting 5. Developing a learning culture 5. Creating layers of independence and transparency SHARED GOALS MEAT INDUSTRY STRATEGIC PLAN GOVERNMENT RESEARCH PRIORITIES INDUSTRY CONSULTATION PROCESS MLA STRATEGIC PLAN ANNUAL OPERATING PLAN PROGRAMS SUB PROGRAMS WORK PLAN STAFF PERFORMANCE PLANS Linking evaluation with strategy Meat Livestock austraLia Why does MLA need a framework for independent evaluation?
  • 8. 7 QUALITY EX-POST EVALUATION APPROVAL PROCESS MLA needs credible, rigorous and consistent evaluation procedures across the entire range of its RD and marketing programs to ensure program assessments can effectively determine the net impact of MLA programs in terms of both industry and wider community benefits. Each year the Executive Committee determines the major ex-post evaluations that will make a significant contribution towards meeting objectives of the independent company performance review scheduled for 2010. These appraisals are subject to a scrupulous planning and reporting process to ensure consistent, high quality information is provided to program managers to assist decision-making. The following flow chart demonstrates the approval process that supports this approach. MLA EX-POST EVALUATION APPROVAL PROCESS Approval of proposed MLA Program Evaluation Schedule Manager Evaluation Program Improvement works with relevant program managers to develop evaluation proposals Evaluation team develops evaluation proposal Independent expert verification team Program Manager forms the evaluation team Evaluation team develops the evaluation plan Data collection analysis Evaluation team develops draft evaluation report Independent expert verification team Evaluation brochure is published and communicated as appropriate NO NO NO NO NO YES YES YES YES YES Manager Evaluation Executive Committee Executive Committee
  • 9. 8 LEADING EDGE The MLA Evaluation Framework embodies three simple principles which guide program managers in their development of individual program KPIs. These are consistent with the Council of Rural Research and Development Corporations’ Chairs (CRRDCC) evaluation guidelines and are based on the Commonwealth Department of Finance and Administration approach to program evaluation: 1Setting a baseline - establishing the change in industry and public benefits that would occur if MLA does nothing. 2Showing evidence of causality – providing the evidence that proves MLA program outcomes have led to more industry and public benefits when compared to the baseline. 3Attribution – estimating the proportion of additional benefits that can be reasonably attributed to the contribution made by MLA programs relative to other influencing factors. These three simple principles are generic. They are valid in every context within which MLA programs operate. They can be consistently applied using either a ‘bottoms up’ or ‘tops down’ evaluation approach. ‘Bottoms up’ is always the preferred way to conduct ex-post evaluations. This approach is based on reviewing the theory of action for the program and the observed changes in the relevant KPI measures compared to the baseline. This evidence is then used to substantiate the benefits claimed by the program. It is a very transparent process and any claims arising can withstand close scrutiny:  because the baselines are produced using real data;  because there is clear evidence of causal links between program outcomes and observed changes in industry performance; and  because the theory of action means that MLA’s role is well understood and therefore attribution is more objective. The decision to go ‘tops down’ for an ex-post evaluation is normally due to a combination of factors such as: a lack of evidence linking program outcomes (e.g. adoption figures) to the benefits being claimed by the program; and/or situations in which a large number of parties has contributed to the achievement of claimed benefits, such as a multi-RDC project. Unfortunately, although it often turns out to be the only practical option, the ‘tops down’ approach to ex-post evaluation is perceived to be more arbitrary and less transparent than the ‘bottoms up’ approach:  because establishment of the baseline is reliant on industry expert opinion;  because causal linkages between program outcomes and observed changes in industry performance are based solely on justified assumptions;  because there is a need to test attribution assumptions using a sensitivity analysis such as breakeven modelling; and  because multi-party collaboration means that attribution has to be negotiated and therefore is usually a very subjective process. There have been numerous issues and lessons arising from the application of the MLA Evaluation Framework to the programs evaluated so far:  limited evidence for causal linkage between program outcomes and observed industry impact for both marketing and research;  negotiating the attribution of observed industry benefits across key stakeholder contributions. Framework implementation has been an evolutionary ‘learning by doing’ process. Peer review at various levels (detailed under ‘Quality’) has informed the framework’s refinement and improvement. This iterative approach has culminated in the development of a framework that can be adapted so as to be fit for purpose (i.e. marketing vis-à-vis market access vis-à-vis RD), while maintaining the rigour, transparency, simplicity and resource efficiency necessary to allow increased understanding by program managers and engagement with relevant stakeholders.
  • 10. 9 CONTRIBUTION TO KNOWLEDGE The CRRDCC released a set of “Guidelines for Evaluation” in May 2007 which were revised in May 2009. The guidelines assist evaluation of the impact of RD programs funded by RDCs and were established by the CRRDCC to report to Government on the:  collective returns from RDCs to industry  collective public and spillover returns from RDCs  public and spillover returns that are conditional on public contributions to RDCs. It is intended that the processes and procedures set out in the CRRDCC framework will represent the minimum evaluation requirement of each RDC. A systematic evaluation of a sample of investments will constitute an ‘evaluation’ pool and an analysis of the overall economic, social and environmental returns is provided on an annual basis. EFFECTIVENESS The discipline behind the process of negotiating attribution of benefits to program stakeholders has had the greatest impact on MLA staff and MLA investment partners. The MLA Evaluation Framework process for apportioning benefits across program stakeholders typically: a. considers what other stakeholders were involved; b. considers the contribution of other stakeholders; and c. rules that the total estimate should incorporate all stakeholders involved and add up to 100 per cent. The process of determining attribution involves verification with all program stakeholders. EQUITY MLA has adopted the Australasian Guidelines for the Ethical Conduct of Evaluation (see http:// www.aes.asn.au/). These guidelines are consistent with the current MLA Code of Business Conduct Ethics (2006), but can be specifically applied to the execution of the evaluation work plan outlined in the MLA evaluation strategy 2007 – 2010. One of the key objectives of the MLA Evaluation Framework is to enable an outcomes-focused performance culture that rewards measurement and achievement of KPIs. An effective evaluation framework provides findings that can be used for program decision- making, program improvement and optimal resource allocation. Moreover, it empowers MLA staff to further sharpen the focus on achieving real outcomes that align with the objectives of the MLA Strategic Plan 2008 – 2012 (detailed under Assessment). The MLA Executive Senior Managers Forum is a recent initiative that is partly the result of implementation of the evaluation framework (see diagram below). Its objectives are to: 1Ensure all staff gain a broader understanding of, and have greater input into, the company’s objectives and activities 2Ensure alignment of industry and government priorities with MLA strategy and program implementation 3Ensure program measures align with MLA strategy measures to allow clear reporting to stakeholders. Implementation of the evaluation work schedule promotes a collaborative culture of robust program review and improvement within MLA. It will allow successes to be rewarded and replicated, and facilitate knowledge-share of lessons learned. This enables changes that underpin MLA’s continuous improvement in the delivery of its programs and services. The MLA Strategic Plan 2008 – 2012 works in concert with this evaluation work schedule to deliver a culture of collaborative inquiry and participative reflection within MLA and with our investment partners. ProjObjectives Activity KPIs Contracted Activities MLA measures AOP Objective KPIs Strategy 1 Strategy 2 Strategy 3 Strategy n AOP Strategy Strategy KPIs Projects Industry Outcomes MLA measure KPIs Each KPIsfor AOP Objectives Accumulate (Over 5 years) KPIs Cascading Down – from industry outcome to Strategic Plan to AOP to project to contract activity KPIs Cascading Up – from the Project to AOP to Strategic Plan levels Improving MLA governance through strategic alignment of KPIs
  • 11. 10 USE OF INTERNAL AND EXTERNAL RESOURCES The role of external evaluators (typically the CIE) is to conduct evaluation in a way that builds the capacity of MLA by supporting the evaluation team during any or all of the evaluation phases. This role includes:  facilitating the scope scale of the evaluation  advising on appropriate data sources and methods of collection  designing and implementing various data collection tools and instruments  drafting the evaluation report. Using internal staff in evaluations brings corporate knowledge of both the program and MLA into the evaluation process. Internal teams have the advantage of being able to quickly modify the design of an evaluation when it becomes apparent that an evaluation activity is not working. Using external evaluators brings specific expertise in evaluation design, data collection and analysis or reporting to the evaluation. External evaluators also bring independence to the process. The ex-post evaluations of most MLA programs are conducted by CIE. The program manager is required to manage the process to ensure that the findings and lessons learned are relevant and useful. This involves actively negotiating the evaluation plan with the contractor/consultant, monitoring data collection and analysis, and approving the final evaluation report in consultation with the independent expert verification team and the Executive Committee. The activity diagram above illustrates the context and interaction between each of the components of a successful evaluation framework at MLA. It illustrates that reporting to government and engagement with peak industry councils/industry – the function of the MLA evaluation brochure series – contribute to the overarching objective of building and maintaining stakeholder confidence in MLA. Program improvement is an equally important outcome of the framework. Its embodiment will be observed as guiding improvement in future investment strategy and the creation of a more outcomes-focused management culture at MLA. The program evaluation schedule is now past the half-way mark and there are very promising signs of sustained program improvement at MLA (e.g. adoption of program logic for planning etc.). The chart above illustrates the results of a subjective assessment against criteria for MLA’s progress towards desired reporting and program improvement outcomes. The comparison between 2005 and 2008 suggests good progress has been made, particularly with respect to reporting to the Australian Government. CONCLUSION We will know that we have been successful when:  evaluations are meaningful to end-users  MLA staff manage for outcomes  evaluation is core to MLA values. In essence, implementation of the MLA Evaluation Framework has been all about establishing patterns of behaviour that permit learning and reflection to occur:  At the strategic level – the evaluation strategy sets the timeframe and processes for learning and reflection. Human knowledge is deeply contextual; it is triggered by circumstance and need, and is revealed in action. “We only need to know what we know when we need to know it”.  At an operational level – there is a range of ‘learning by doing’ processes that work both in series and parallel. These begin with development of an evaluation proposal for approval by the Executive Committee and finish with final production, stakeholder/peer review workshop, and approval of the evaluation brochure by the MLA Board. The role of MLA’s Manager Evaluation Program Improvement is to work with each of the relevant stakeholders (guided by people-focused program logic, detailed on p4) to facilitate the adoption of these patterns of behaviour. There is strong evidence that attitudes are gradually changing and an evaluative culture is beginning to emerge. This is not an ‘all of company at the same time’ approach, but rather a ‘bit by bit – program by program’ evolution unfolding over the course of the evaluation strategy’s implementation. SUSTAINABILITY Culture managing foroutcomes MLA Board Evaluation reporting Program improvement Reporting to Government Guiding future investment Stakeholder confidence in MLA AOP KPI Report Engagement with PICs/industry KPI Reporting Baselines measurement Context and interactions of evaluation at MLA Levels of achievement for framework objectives* Ideal Culture managing for outcomes Usefulness as a guide for future investment Satisfactory PIC Response Satisfactory Government Response 0% 20% 40% 60% 80% 100% MLA 2005 100% 25% 25% 25% 25% 32% 33% 42% 56% MLA 2008 *2005 levels represents compliance with minimum statutory requirements.
  • 12. i APPENDIX MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION PAGE 1 Meat Livestock austraLia Why does MLA need a framework for independent evaluation?
  • 13. ii Meat Livestock austraLia introduction Performance evaluation is a critical success factor that allows Meat Livestock australia (MLa) to demonstrate its delivery of world-class services and solutions in partnership with the red meat industry and government. in 2005 MLa engaged the centre for international economics (cie) to conduct an independent review of the way MLa evaluated its performance and consequently developed a more effective evaluation framework. implementing the recommendations of this review ensures accountability to stakeholders including red meat producers (MLa members), the red meat industry, peak industry bodies, third party investment partners, and the commonwealth Government. the framework allows MLa to assess the industry impact of its programs and their compliance with government priorities. assessing actual program outcomes against the principal goals – to build demand, increase market access, develop competitive advantage and build industry capability – is called ex-post evaluation. it enables MLa to report back to management and to be answerable to stakeholders. assessing anticipated program outcomes against goals is called ex-ante evaluation, and this helps MLa to predict the impact of its programs in advance. independent evaluation of programs across MLa’s portfolio of work is essential to accountability and supports internal management of activities, helping to ensure that a learning process is instilled within MLa. Backing this is an evaluation work schedule developed by MLa to ensure that the framework is consistently applied across all programs and that it involves both ex-post and ex-ante evaluation. the framework will also report on alignment of MLa program outcomes with the new rural research and Development Priorities, which complement and are informed by the australian Government’s National research Priorities. Why Does MLa NeeD a fraMeWork for iNDePeNDeNt evaLuatioN? APPENDIX MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION PAGE 2
  • 14. iii Meat Livestock austraLia how does the MLa framework for independent evaluation work? MLa programs are evaluated at various stages throughout their lifecycle for their efficiency, economy and effectiveness in achieving objectives based on established criteria. each stage has specific implications for the level and type of evaluation. evaluation also depends on the program’s reporting requirements. Beyond the basic indicators – inputs and outputs – the MLa evaluation framework traces outcomes, impacts and benefits, providing a comprehensive assessment of program performance (chart 1). a set of objectives is derived from the australian red Meat industry strategic Plan 2004-2009 and MLa’s own strategic planning processes. these program or project objectives determine the inputs required to achieve the objectives. Monitoring inputs – investment Objectives Market returns Benefit-cost ratio Triple bottom line Environmental Social Inputs Outputs Outcomes KPIs Integrated framework Chart 1: Program evaluation overview Benefits to stakeholders Program evaluation is important for several reasons: 1. Responsibility for investing funds on behalf of the industry. MLa makes investments today to produce future benefits. to ensure funding is allocated to achieve the highest return possible, MLa must evaluate programs ex-ante to determine the expected program benefits or pay-offs and to draw comparisons. 2. Efficient operation. efficient operation is dependent on effective project management, which can only be achieved with program monitoring and evaluation. 3. Learning from the experience of different programs. evaluation allows MLa to learn both from successful programs and from those which need further improvement. the accumulated knowledge provides insights that enable funding allocations to be channelled into higher pay-off areas across MLa’s range of activities. four key criteria ensure the evaluation is robust: 1. Consistency across programs – this ensures programs can be compared and allows MLa to consistently apply its evaluation framework across the entire program lifecycle and across all programs. 2. Calculation of marginal return from investments – this involves determining whether or not funds can be transferred from one program to another to achieve a higher overall return from the total investment in MLa’s activities. 3. Declaration of the key assumptions – this allows a ‘counterfactual’ case to be established which determines what would have happened in the absence of outcomes generated by the program. 4. Estimation of the spill-over benefits arising from program outcomes – this measures the indirect benefits enjoyed by consumers, the community and other enterprises outside the industry value chain. APPENDIX MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION PAGE 3
  • 15. iv Financial model Assessment and ranking of benefit Chart 2: Integrated framework Value chain model Global trade model Other triple bottom line: • environmental • social Integrated framework Quantifiable Not quantifiable costs or total dollars spent – at this level produces simple key performance indicators (kPis) that are valuable for short-term project management and monitoring. inputs lead to outputs – tangible results of inputs, such as the number of butchers trained in better meat display – and these provide another opportunity to develop clear kPis that measure the quality of the output, not just whether it was achieved. outputs lead to outcomes – the changes in practice or behaviour resulting from adoption of outputs, such as increased sales and ultimately better returns to producers attributable to improved butcher training. outcome kPis measure adoption as well as resulting changes, and measure the extent to which expected results are achieved. Deriving outcomes often requires detailed knowledge about both consumer and producer behaviour, and involves translating outputs into the key differences they make to industry supply and demand relationships. in the case of food safety or animal welfare, the evaluation process translates the output into a risk reduction. once a supply, demand or risk outcome is identified, it is possible, through the integrated framework, to quantify the benefits and costs to the industry that can be aggregated across programs (chart 2). the environmental and social outcome components of the triple bottom line can sometimes be quantified and included formally in program cost and benefit assessments. however they are often not quantifiable, particularly in dollars. such benefits are reported qualitatively in case studies. for MLa to meet its evaluation requirements it must have a thorough appreciation of how the red meat industry interacts. there are four key elements to ensure the evaluation framework accounts for these interactions: 1. A value-chain model of the industry 2. MLA’s global meat industries model 3. A framework to handle triple bottom line environmental and social issues 4. A financial model (to calculate net present values of benefit-cost ratio streams) that allows the effectiveness of the current MLA portfolio to be evaluated against what could be achieved if it was reallocated to maximise MLA’s return on its total investment budget. further information • For access to the MLA Program Evaluation Framework manual, the MLA Strategic Plan 2007-2011 or information on MLA programs, visit the MLA website: www.mla.com.au • To download More From Less: the Strategic Direction for the Australian Red Meat Industry 2004-2009, visit the Red Meat Advisory Council website: www.rmac.com.au • The Council of Rural Research and Development Corporation Chair Guidelines for Evaluation are available on the Rural RDC website: www.ruralrdc.com.au Level 1, 165 Walker St, North Sydney NSW 2060 AUSTRALIA Tel +61 2 9463 9333 Fax +61 2 9463 9393 www.mla.com.au Published by Meat Livestock Australia Limited ABN 39 081 678 364 August 2007 © Meat Livestock Australia (2007) ISBN 9781741911626 Disclaimer: Where possible care is taken to ensure the accuracy of the information contained in this publication. However MLA cannot accept responsibility for the accuracy or completeness of the information or opinions contained in the publication. You should make your own enquiries before making decisions concerning your interests. Reproduction in whole or part of this publication is prohibited without prior consent and acknowledgment of Meat Livestock Australia. Meat Livestock Australia acknowledges the matching funds provided by the Australian Government to support the research and development detailed in this publication. APPENDIX MEASURING PROGRAM VALUE THROUGH EX-POST EVALUATION PAGE 4