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What is a theory of change? A worked example you can copy

Oct 07 2026 · Templates

A worked theory of change example: four levels, the assumptions on each arrow, and a checklist to test whether yours is honest.

Short answer

A theory of change is a short if–then chain that links what you do to the change you seek, with the assumptions written on the arrows. Build one by listing your activities, the outputs they produce, the outcomes those outputs cause, and the impact you ultimately want — then write, at each step, the assumption that must hold for the next step to follow. A useful theory of change fits on one page and names its risks. The test is simple: could you design an evaluation that would show a given arrow is wrong? If not, you have a slogan, not a theory.

What is a theory of change in one sentence?

A theory of change is a causal chain: if we do these activities, they produce these outputs, which lead to these outcomes, which contribute to this impact — provided the assumptions on each arrow hold.

It is not a diagram for a funding proposal. It is a working hypothesis about how change happens, and it should be falsifiable.

What are the four levels of a theory of change?

  1. Activities — what you actually do, such as delivering training or distributing cash transfers.
  2. Outputs — the countable products of those activities, such as 200 people trained or 500 transfers made.
  3. Outcomes — the change in behaviour, knowledge or conditions, such as participants applying new skills at work.
  4. Impact — the longer-term difference you seek, such as reduced household poverty.

Keep each level to a handful of items. A theory of change with 40 boxes is a filing cabinet, not a theory.

Why do the assumptions matter more than the boxes?

The value sits on the arrows. Between training delivered and practice changed, the assumption might be that staff have the authority to change how they work. If that assumption fails, the theory fails — and that is exactly what your evaluation should test.

The falsifiability test

If you cannot imagine evidence that would disprove an arrow, it is not a theory. It is a slogan.

Worked example: a youth employment programme

Here is a one-page theory of change for a fictional programme that trains young people and places them in jobs. The assumptions are the honest part.

LevelExampleAssumption on the arrow
ActivitiesDeliver a six-week employability courseYoung people can attend consistently
Outputs120 participants complete the courseCompletion reflects learning, not just attendance
OutcomesParticipants secure and keep jobsLocal employers are hiring and will consider these candidates
ImpactHigher household income and stabilityJobs pay enough and last long enough to change household finances

Notice that none of the assumptions are about the programme's effort. They are about the world the programme operates in. That is where theories of change usually break.

How is a theory of change different from a logic model or logframe?

ToolWhat it showsBest used for
Theory of changeCausal chain plus assumptions and risksDesigning and testing a strategy
Logic modelInputs, activities, outputs and outcomes in a linear diagramCommunicating a programme on one page
LogframeObjectives, indicators, means of verification and assumptionsContracting and reporting to a donor

They overlap. A logframe is a reporting tool; a theory of change is a thinking tool. You can build a logframe from a theory of change, but not the other way round. If you need a starting point, see our logframe template for Google Sheets.

Checklist: is your theory of change good enough?

  • It fits on one page.
  • Every arrow has a written assumption.
  • Each assumption is something you could test with evidence.
  • Outcomes describe change in people or systems, not activities you deliver.
  • Impact is stated as a contribution, not a claim of sole attribution.
  • Someone outside the programme can read it and explain it back to you.
  • It names at least one risk that would make the whole chain fail.

How do you test a theory of change?

Turn each assumption into an evaluation question. If the assumption is that employers will hire your graduates, the question is whether they do, and why or why not. That becomes your outcome indicator and your data collection plan.

You do not need to test everything at once. Pick the two or three assumptions that carry the most weight. If they hold, the theory is plausible. If they fail, you have learned something more useful than a positive report. An evaluation plan keeps those tests on schedule.

What are the most common mistakes?

  • Writing outcomes as activities, such as deliver workshops.
  • Leaving assumptions implicit, so failure looks like bad luck.
  • Making the chain too long to test.
  • Treating the theory as fixed rather than revisable.
  • Confusing impact with attribution — you contribute to impact, you rarely own it.

Where can you build one quickly?

A one-page theory of change is easier to maintain than a 20-page strategy. If you want a structured place to draft the chain, the assumptions and the indicators that test them, the M&E Framework Builder walks you through it. You can also browse the wider tools index if you are still choosing.

Get the M&E Framework Builder

Written for M&E professionals. Not a guarantee of accuracy — always verify every claim against its source, and let a named human sign off. Get the free handbook.

What is a theory of change? A worked example you can copy · Evaluation AI