About Monitoring and Evaluation
As much as the investor will want to track the financial performance of the organisation, they will want to monitor and evaluate the impact being generated. Monitoring and evaluation enables the investor to determine if the investment is having the intended effect, and thus proving to be an impact-effective way to use capital.
4.1 Use of Capital
Ensure the capital is being used appropriately, asking:
- Has the investment been drawn down?
- Is the use of capital properly accounted for and in line with the impact plan (and agreed use)?
- Are other inputs forthcoming as planned?
4.2 Impact Reporting
Check the impact reporting, paying attention to:
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4.2.1 Reporting Forthcoming
- Is the reporting being delivered on time?
- Is it complete?
- Is the measurement system being used and developed as anticipated?
- If reporting is not forthcoming, is there a process to deal with it?
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4.2.2 Quality of Information
- Are the indicators tracking impact effectively, and telling us what we need to know?
- Is the data strong — i.e. properly collected, and treated appropriately?
- Is the perspective of beneficiaries and others being included?
- Are questions relating to the context of change being addressed?
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4.2.3 Verification of Results
- Is there any independent verification of results or processes?
- Do the results and information provided by the organisation leave an audit trail such that they could be verified?
4.3 Impact Delivery
Assess the impact delivery, including:
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4.3.1 Evaluation of Impact Risk
- Do the results boost confidence in the initial impact plan, and the implied theory of change?
- Is the impact risk clearly either falling or rising (rather than just remaining hazy)?
- Is there evidence to show outputs, outcomes and impact are all forthcoming, and to support the links made between these three?
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4.3.2 Evaluation of Impact Generation
- Is the organisation meeting the set objectives, and generating the anticipated impact?
- Are the results being explained? Do we understand why they are as they are?
4.4 Future Outlook
Ensure the organisation is learning, improving and moving forward, asking:
- What are the practical lessons learned from the results, and what are the changes they suggest?
- What are the upcoming changes in the context?
- What, in response, is the impact plan — and accompanying measurement system and set objectives — going into the future?
