Phillips ROI

KnowledgeAdvisors collaborates with thought leaders in learning measurement. Our solutions wrap technology and process around industry proven methodology. Below are the methodologies that are built into KnowledgeAdvisors solutions assuring our customers of a credible, reliable and consistent learning metrics.

Drs. Jack and Patti Phillips of the ROI Institute are world renowned for their work on accountability in the learning and development space. Drs. Jack and Patti Phillips are advisory board members to KnowledgeAdvisors. The Phillips ROI Process is used internationally and endorsed by organizations like The American Society of Training and Development (ASTD).

KnowledgeAdvisors partnered with Drs. Jack and Patti Phillips to wrap technology around The Phillips ROI Process. Even in the most basic solutions from KnowledgeAdvisors organizations can calculate a financial ROI from the training event. Premium tools designed specifically by Drs. Jack and Patti Phillips are available within KnowledgeAdvisors learning analytics platform, Metrics that Matter® that provide templates and technology to automate the Phillips ROI Process for conducting impact studies. Special Phillips ROI Scorecards are outputs of this process.

Over time the need to measure the dollar value impact of training has emerged and Dr. Jack Phillips added a fifth level to the Kirkpatrick Model. Dr. Phillips outlines his approach to Level Five in his book Return on Investment in Training and Performance Improvement Programs, Butterworth Heinemann Publishers, Inc, Woburn, MA 1997. Dr. Phillips has written extensively on the subject, publishing or editing dozens of books on the topic of ROI.

The Guidelines for Level Five are as follows:

• Use a control group, if practical
  
  
• Allow time for results to be achieved
  
  
• Determine the direct costs of the training
  
  
• Measure a productivity or performance before the training
  
  
• Measure productivity or performance after the training
  
  
• Measure the productivity or performance increase
  
  
• Translate the increase into a dollar value benefit
  
  
• Subtract the dollar value benefit from the cost of training
  
  
• Calculate the ROI

ROI calculations are being done by a few world-class training organizations. They help these organizations:

• Use a control group, if practical
  
  
• Quantify the performance improvements
  
  
• Quantify the dollar value benefits
  
  
• Compute investment returns
  
  
• Measure productivity or performance after the training
  
  
• Make informed decisions based on quantified benefits, returns, and percent return comparisons between learning programs

Dr. Phillips has created an ROI Methodology that he conducts certifications and workshops on and has helped training organizations use the right tools to measure the ROI on organizational learning. A summary of his methodology is illustrated below:

The methodology is a comprehensive approach to training measurement. It begins with planning the project (referred to by Dr. Phillips as an Impact Study). It moves into the tools and techniques to collect data, analyze the data and finally report the data. The end result is not only a Level 5 ROI but also measurements on the Kirkpatrick 4 Levels as well. This yields a balanced scorecard approach to the measurement exercise.