English

When "Better" Prompts Hurt: Evaluation-Driven Iteration for LLM Applications

Computation and Language 2026-01-30 v1 Artificial Intelligence Information Retrieval Software Engineering

Abstract

Evaluating Large Language Model (LLM) applications differs from traditional software testing because outputs are stochastic, high-dimensional, and sensitive to prompt and model changes. We present an evaluation-driven workflow - Define, Test, Diagnose, Fix - that turns these challenges into a repeatable engineering loop. We introduce the Minimum Viable Evaluation Suite (MVES), a tiered set of recommended evaluation components for (i) general LLM applications, (ii) retrieval-augmented generation (RAG), and (iii) agentic tool-use workflows. We also synthesize common evaluation methods (automated checks, human rubrics, and LLM-as-judge) and discuss known judge failure modes. In reproducible local experiments (Ollama; Llama 3 8B Instruct and Qwen 2.5 7B Instruct), we observe that a generic "improved" prompt template can trade off behaviors: on our small structured suites, extraction pass rate decreased from 100% to 90% and RAG compliance from 93.3% to 80% for Llama 3 when replacing task-specific prompts with generic rules, while instruction-following improved. These findings motivate evaluation-driven prompt iteration and careful claim calibration rather than universal prompt recipes. All test suites, harnesses, and results are included for reproducibility.

Keywords

Cite

@article{arxiv.2601.22025,
  title  = {When "Better" Prompts Hurt: Evaluation-Driven Iteration for LLM Applications},
  author = {Daniel Commey},
  journal= {arXiv preprint arXiv:2601.22025},
  year   = {2026}
}
R2 v1 2026-07-01T09:26:12.129Z