Phillips ROI Methodology
The methodology should be considered a process improvement tool. It captures, analyzes, and reports data in a refined step-by-step sequential process which indentifies barriers and provides evidence of business impact. When an evaluation is planned, the level of evaluation is determined. To be credible, every impact or ROI evaluation includes a method to isolate the effects of the program on the particular business impact data.
When an evaluation is planned, the level of evaluation is determined. To be credible, every impact or ROI evaluation includes a method to isolate the effects of the program on the particular business impact data. In addition to the five evaluation levels, the methodology also includes intangible measures and: techniques to isolate the effects of the program and monetize the business impact. highly refined Guiding Principals to maintain objectivity and credibility.
| Level | Measurement Focus |
| 1. Reaction | Measures participant satisfaction with the program and captures planned actions, if appropriate. |
| 2. Learning | Measures changes in knowledge, skills, attitudes and behaviors. |
| 3. Application | Measures progress of program as the content/desired behavior is applied, implemented, or utilized. |
| 4. Business Impact | Measures changes in business impact indicators linked to the program. |
| 5. Return on Investment | Compares program benefits in monetary values to the cost of the program. |
In addition to the five evaluation levels, the methodology also includes intangible measures and:
- techniques to isolate the effects of the program and monetize the business impact.
- highly refined Guiding Principals to maintain objectivity and credibility.
