From the course: Measuring Learning Effectiveness

Unlock the full course today

Join today to access over 24,700 courses taught by industry experts.

The Phillips ROI Methodology

The Phillips ROI Methodology

- Jack Phillips developed the ROI model to add a financial component to training evaluation. He did this by building on Donald Kirkpatrick's four level model. Phillips added level zero, which represents program inputs. Like the number of people who attend the training, as well as the cost. He also added level five, which is return on investment, or ROI, to identify the financial impact of a training program and isolate it from other factors. Here's an example. Let's say you want to evaluate a sales training program for a retail chain with 100 stores. We start by gathering some level zero input numbers. We decide to run a pilot program at five stores. It costs an average of $5,000 per store to deliver the training, so the total delivery cost is $25,000. Delivery includes the trainer's time, travel costs, participant wages, and training materials. It costs $10,000 to develop the training, but we can spread that over all…

Contents