Evaluation · An evaluation process running from programme design to 3-12 months after delivery.

Phillips ROI Methodology

The Phillips ROI Methodology is an evaluation process that extends the Kirkpatrick levels with a fifth level, return on investment, and a set of steps for isolating a programme's effects and converting them to money. It measures reaction, learning, application, impact, ROI and intangibles.

When to use Phillips ROI Methodology

When sponsors need evidence of business value for a significant learning or change programme, and there are measurable business outcomes to link it to.

How Phillips ROI Methodology works

Use it at the design stage: write objectives for application and business impact, not only for learning, and build follow-up data collection into the programme. Reserve full ROI studies for a few high-cost or strategic programmes.

Phases of Phillips ROI Methodology

  1. Plan the evaluation: Before the programme, set objectives at each level (reaction to ROI) and decide which measures and data sources will be used.
  2. Collect data: Gather reaction, learning, application and business impact data through surveys, tests, observation, interviews and records.
  3. Isolate the effects: Separate the programme's contribution from other influences, for example with control groups, trend analysis or participant estimates.
  4. Convert to monetary value: Translate impact measures into money using standard values, records or expert input, and tabulate fully loaded programme costs.
  5. Calculate ROI and identify intangibles: Compare net benefits with costs; report benefits that cannot credibly be monetised as intangibles.
  6. Report: Communicate results to each stakeholder group in a form they can act on.

Key principles

  • Set objectives at every level, including impact
  • Isolate the programme's effect from other factors
  • Use conservative estimates
  • Report intangibles alongside ROI

Best for

  • Large or costly corporate programmes
  • Leadership and sales training with business metrics
  • Business cases for L&D investment
  • Pilots before scaling

Considerations

  • Isolating effects and monetising outcomes depend on estimates and assumptions; results can look more precise than they are.
  • Resource-intensive; not worth a full study for small or low-stakes sessions.
  • Shares the level structure of the Kirkpatrick Model already in the library; its added value is the ROI calculation and isolation steps.

Attribution & sources

Developed by Jack J. Phillips, 1983

Primary source

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