User:Kyraportsmouth/sandbox

Description of Philips ROI Model

Philips ROI model is a methodology and process for Learning and Development and Human Resources teams to tie the cost of training programs with their actual results. This model uses the words "methodology", "process" and "model' interchangeably to describe it.

This model builds the Kirkpatrick Model, which is one of the most commonly used models to evaluate training programs. Data are classified from different types of employee training programs to measure; . the reaction of participants. The actual learning of participants. The behavior change from these learning. The final results

This model makes the monetary benefit clear for organizations by adding a fifth layer to calculate the ROI ( return on investment) of each program. The additional level compares learning business impact outcomes to total learning costs.

Illustration associated with the model

https://www.google.com/imgres?imgurl=https%3A%2F%2Fwww.researchgate.net%2Fpublication%2F228736890%2Ffigure%2Ffig2%2FAS%3A393683049435140%401470872761766%2FPhillips-model-for-the-calculation-of-ROI-for-an-HR-intervention-Source-Phillips-1997.png&imgrefurl=https%3A%2F%2Fwww.researchgate.net%2Ffigure%2FPhillips-model-for-the-calculation-of-ROI-for-an-HR-intervention-Source-Phillips-1997_fig2_228736890&tbnid=mv-BFKHpfLzHvM&vet=12ahUKEwjkzanMovX6AhWUdDABHa5IA3MQMygCegUIARC4AQ..i&docid=FOd-T5iTbladbM&w=850&h=533&q=phillips%20roi%20model&ved=2ahUKEwjkzanMovX6AhWUdDABHa5IA3MQMygCegUIARC4AQ

History and background

Training is a much needed investment for any organization, as it helps drive productivity, boost revenue and meet strategic goals. Employee training tools are, very, essential for business growth and profitability. Over time, several Training Evaluation Models have emerged to helped investigate and analyze the effectiveness of training framework that helps analyze the success of learning and development programs.

In order to understand the Philips ROI model ,the Donald Kirkpatrick training evaluation model must be first considered. ROI model proposed by Philips is an extension of Kirkpatrick Model.

Jack .J. Philips, a world- renowned expert on measurement and evaluation and chair of ROI institute, suggested that for a training program to be implemented successfully, the ROI should be calculated. Therefore, the Return on Investment Model used for measuring the success of employee raining evaluation revised the Kirkpatrick Model and incorporated a fifth level which was included in the description.

Application of the model

The five steps of the Philips ROI framework

Kirkpatrick Model was the de-facto model of training evaluation in the 1970s and 1980s. Jack Philips expanded on his short comings to include considerations for return on investment ( ROI) of training programs.

The five proposed steps of ROI model of training includes:

Level 1- Reaction
 * 1) Reaction
 * 2) Learning
 * 3) Application and implementation
 * 4) Impact
 * 5) Return of investment

This is the first level in the Philips ROI methodology, this is where training managers use short surveys to gather data about participants' reactions to their training. Level 2- Learning

In this step, participants complete a multiple-choice  questions survey or quizzes are done before and after training. The responses are used to determine how much knowledge they've acquired. Level 3- Application and implementation

This is where data are collected to find out if the training worked or not. Level 4-Impact

This is where an analyzes is done to determine the impact of training content and other factors that contribute to participants' final performance. Level 5- Return on Investment(ROI) This is where a cost- benefit analyzes is used to map the impact of data to tangible monetary benefits and a set of intangible benefits. Training managers can use this data to measure and communicate the benefits of their program to other departments in the company. How to calculate training ROI with the Philips Model Throughout the first four levels of the Philips ROI methodology ,data helps identify reasons for positive or negative ROI of the training programs a result of a series of events:

.transfer of knowledge and skills (in level 2)

. Application of learned knowledge and skills (in level 3)

. Business impact of training (in level 4)

Assuming the program clears level 1, each next level evaluated under the Philips ROI Model checks if the change was a result of the program or various external factors. Calculation of ROI under Jack Philips' model, for fifty (50) software developers receiving training on a new programming language. A case through the Philips ROI model on how to calculate the ROI on this training program. consider these precautions before following the Philips ROI Model for training evaluation.

This model presents a complex and sensitive process. The following conditions should be met before process is put to use: .Conduct a needs assessment for your training program. This should not be used if there is not any needs assessment data available. .Strategies to isolate the training effect . Estimates should only be based on reliable and credible sources

. Costs should be calculated with a conservative approach.

. The training ROI should not be compared to other financial returns until it is absolutely essential.

. Management should not be isolated from the ROI calculation process.

. Caution should be taken to know what is measurable and what is not. Input taken on inclusion/ exclusion of sensitive factors. step1- Data should be gathered before the training starts.

step 2- Data should be gathered at the end of the training training.

step 3- Isolate effects lessons from the training program.

To isolate the effects of the training program ,some techniques include:

. Trend line analysis

. Control group

. Forecasting models

. Training impact estimation from participants, supervisors, experts and customers.

step 4 Monetary benefits of the program should be extracted from the data.

step 5- Add up all program cost.

step 6- calculate the return on investment (ROI)

step 7- the intangibles should be found. Each type of program will have its own type of intangible benefits. With the Philips ROI model, you get precise data on how effective training programs are and how much profit it can generate. It also allows you to gauge intangible benefits arising from training programs.

Impact and ROI forecasting strategies can help predict profitable training programs to start and which unproductive ones to drop.

Deller, Jonathan .(2021)

Philips, J.J. (ed.), (1994). In action measuring return on investment. Alexandria VA: American Society for Training and Development

Philips, J.J. (1998). Level Four and Beyond: An ROI model. In: Brown, s.m., Seidener,  c.j.  (eds)

Evaluating Corporate Training: Models and Issues. Evaluation in Education and Human Services vol 46. Springer, Dordrechl.

https://whatfix.com/blog/philips-roi-model/

https://harappa. education/harappa-diaries/philips-roi-model/