Course Details

Cost-Effectiveness and Cost-Benefit Analysis in M&E Training Course

INTRODUCTION

This essential training course provides comprehensive knowledge and practical skills for conducting Cost-Effectiveness Analysis (CEA) and Cost-Benefit Analysis (CBA) within Monitoring & Evaluation (M&E). Recognizing that demonstrating value for money is increasingly crucial for securing funding, optimizing resource allocation, and making evidence-based policy decisions, this program equips participants with a systematic understanding of economic evaluation methodologies. Participants will gain deep insights into identifying costs, valuing benefits, calculating key ratios, and presenting findings in a clear and compelling manner, all crucial for maximizing the efficiency and impact of programs. This course is ideal for M&E specialists, program managers, financial analysts, policymakers, and funders seeking to strengthen their economic evaluation capabilities.

DURATION

10 days

TARGET AUDIENCE

This course is specifically designed for professionals involved in program planning, budgeting, M&E, and resource allocation across various sectors, who need to evaluate the economic efficiency of interventions, including:

• Monitoring and Evaluation (M&E) Specialists.
• Program Managers and Directors.
• Financial Analysts and Accountants in development/social sectors.
• Policymakers and Government Officials.
• Donors and Grant Managers.

OBJECTIVES

Upon completion of this course, participants will be able to:

• Understand the fundamental concepts of Cost-Effectiveness and Cost-Benefit Analysis.
• Differentiate between CEA and CBA and determine when to apply each.
• Identify and quantify relevant costs and benefits of a program.
• Perform basic CEA and CBA calculations and interpret their results.
• Utilize economic evaluation findings to inform program decisions and resource allocation.

MODULES

Module 1: Foundations of Economic Evaluation in M&E

• Define economic evaluation and its role in M&E and decision-making.
• Explore the concepts of efficiency, effectiveness, and equity in program assessment.
• Understand the core principles of Cost-Effectiveness Analysis (CEA) and Cost-Benefit Analysis (CBA).
• Discuss the importance of demonstrating "value for money" in development and social programs.
• Examine the strengths and limitations of economic evaluation methodologies.

Module 2: Distinguishing CEA and CBA

• Understand the primary differences between CEA and CBA in terms of outcome measurement.
• Discuss when to choose CEA (when outcomes are similar and not easily monetized).
• Explore when to choose CBA (when outcomes can be monetized, allowing comparison across different sectors).
• Examine the types of questions each analysis can answer for M&E.
• Learn about practical examples of CEA and CBA applications in various sectors.

Module 3: Identifying and Quantifying Costs

• Understand different types of costs in economic evaluation (e.g., direct, indirect, opportunity costs).
• Discuss methods for identifying all relevant costs associated with a program.
• Explore techniques for data collection on program expenditures and resource utilization.
• Examine the importance of disaggregating costs and accounting for shared costs.
• Learn about adjusting costs for inflation and time (discounting).

Module 4: Measuring and Valuing Effects in CEA

• Understand how to define and measure program effects/outcomes in natural units for CEA.
• Discuss the importance of reliable M&E data for measuring effectiveness.
• Explore techniques for calculating the effectiveness component of the cost-effectiveness ratio.
• Examine how to handle multiple outcomes in CEA.
• Learn about sensitivity analysis in CEA to test assumptions.

Module 5: Valuing Benefits in CBA

• Understand the concept of monetizing program benefits for CBA.
• Discuss direct benefits (e.g., increased income, health savings) and indirect benefits (e.g., improved environmental quality).
• Explore various methods for valuing non-market benefits (e.g., contingent valuation, revealed preference).
• Examine the challenges and limitations of monetizing all benefits.
• Learn about transferring benefit values from other studies (benefit transfer).

Module 6: Calculating and Interpreting CEA and CBA Ratios

• Understand how to calculate the Cost-Effectiveness Ratio (CER) and interpret its meaning.
• Discuss Incremental Cost-Effectiveness Ratios (ICERs) for comparing alternative interventions.
• Explore how to calculate Net Present Value (NPV) and Benefit-Cost Ratio (BCR) for CBA.
• Examine the decision rules associated with different economic evaluation metrics.
• Learn about thresholds and league tables in interpreting CEA results.

Module 7: Presenting and Communicating Economic Evaluation Findings

• Understand how to structure clear and concise economic evaluation reports for M&E audiences.
• Discuss techniques for effectively visualizing CEA and CBA results.
• Explore strategies for communicating complex economic concepts to non-economists.
• Examine the importance of transparently stating assumptions and limitations.
• Learn about tailoring messages to different stakeholders (e.g., donors, policymakers, program managers).

Module 8: Using Economic Evaluation for Program Decisions and Policy

• Understand how CEA and CBA findings inform resource allocation and program prioritization.
• Discuss the role of economic evaluation in justifying investments and seeking new funding.
• Explore how to integrate economic insights into adaptive management processes.
• Examine the political and ethical considerations in applying economic evaluation results.
• Learn about institutionalizing economic evaluation within M&E systems for long-term impact.

CERTIFICATION

• Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

• Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com