So what is the Phillips ROI Methodology and how do you use it in the L&D context?
Many L&D friends and associates have asked me this. Here it is:
Most L&D professionals are aware of the 4 levels of outcome in training. The Phillips ROI Methodology expands upon these (i.e. reaction, learning, behaviour and results) to incorporate a fifth level of evaluation, which serves to capture the financial impact or return-on-investment (ROI) of a particular programme.
The propriety Phillips ROI Methodology (developed by the ROI Institute and refined since 1972) is a proven industry-standard set of processes designed to accurately measure the business impact of projects and programmes, and to put a dollar value on their success. Although designed to work effectively with any business initiatives, programmes and projects, the Phillips ROI Methodology has been used particularly by L&D professionals in major corporations (including Fortune 500’s) with huge success.
As the table below shows, the model captures 6 types of measurement data, both qualitative and quantitative. The ROI is the ultimate level (Level 5) of evaluation, where the impact measures are converted to monetary benefits and compared with the costs. The model also provides for a sixth data measure – Intangible Benefits – which are those benefits that have not been converted to monetary value. These entail such measures as increased morale, improved teamwork, or increased job satisfaction.
Does this means that you should evaluate all your training programmes at Level 5 to see their true value? According to Dr Jack Phillips of the ROI Institute, “The frequency with which evaluation level is used should commensurate with the characteristics (cost, type, purpose) of the programme. There is a cost for completing ROI in and among itself, so be wise to that when evaluating programmes”. The table below shows the targets of each evaluation level developed by a best practice organization.
L&D, OD, HR professionals – don’t miss this unique opportunity to be a Certified ROI Professional, for the first time in Singapore. For more information, go to this link: https://www.linkedin.com/grp/post/2357980-6014371794172010497?goback=%2Egna_2357980
In line with our objective to offer best-in-class learning solutions for executives, London School of Business & Finance is proud to partner with The Business Evaluation Centre to offer “The Bottom Line on ROI” and “ROI Certification Master Class”, based on the Phillips ROI Methodology developed by Dr Jack Phillips of the ROI Institute.
Uncover the business impact and true dollar value of your projects, programmes and business initiatives now – speak to LSBF’s Education Consultants for more information and discounts. Call us at (+65) 6580 7000 | Email us at: executive@LSBF.edu.sg | Visit our website: http://tinyurl.com/BottomLineROI
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