Experts in Measuring, Evaluating and Return on Investment

PHILIPS

The Phillips ROI Methodology™ is simple to implement and provides a credible measurement of any HR or Training programme. It is a standardised process which is time and cost efficient, and tried and tested over 30 years in thousands of organisational settings. Supported by cutting edge research, 50 text books, hundreds of journal articles and published case studies this is one of the most respected techniques for

measuring return on investment across a wide range of functions.

United KingdomImpact Measurement (UK) LtdCamrose House, 2a Camrose AvenueEdgeware, Middlesex, HA8 6EG.

Tel: +44 (0)20 8133 2056 gerard.doyle@phillips-roiinstitute.co.uk www.phillips-roiinstitute.co.uk

Tel +353 1890 98 98 48 Fax +353 1890 87 69 78info@impact-measurement-centre.comwww.impact-measurement-centre.com

IrelandImpact Measurement IrelandPembroke Hall, Fitzwilliam SquareDublin 2

The Return on Investment (ROI) Methodology developed by Dr. Jack J. Phillips and Dr. Patti P. Phillips, has proven to be an accurate, credible and feasible approach to addressing the accountability issues for all types of organisations. The methodology has been accepted and used in over 50 countries and is the leading approach to ROI accountability.

The Phillips ROI Methodology™ model provides a step-by-step process for collecting data, summarising and processing data, isolating the effects of programmes, converting data to monetary value, and capturing the actual ROI (Figure 3).The model incorporates the four evaluation levels developed by Dr Donald Kirkpatrick with the addition of the fifth ROI level developed by Dr Phillips. In addition to this Dr Phillips has perfected a set of techniques for converting data to monetary value, isolating the effects of the programme from other factors and capturing the costs of the programme. He has also used standard accounting formulae for calculating the ROI and developed a series of tools to assist practitioners in reporting results to various stakeholders.

10 Key Features of the Phillips ROI Methodology™

1. Simple The ROI process is simple. It is devoid of complex formulas, lengthy equations, and complicated techniques. It contains 5 Levels and 12 Guiding Principles which being a methodical and standardised approach to what has been perceived as a cumbersome process to implement.

2. Economical The ROI process is easy to implemented and both cost and time efficient. The process can become a routine part of training and development without requiring significant additional resources. Sampling for ROI calculations and early planning for ROI are two features that make it particularly efficient.

3. Credible The assumptions, methodology, and techniques are highly credible. Logical, methodical steps earn the respect of practitioners and senior managers alike. The process is grounded in practice with a clear chain of impact to support conclusions. 4. Theoretically Sound From a research perspective, the ROI process is theoretically sound and based on generally accepted accounting and statistical standards. Nonetheless, the process strikes a balance between implementation and theory to allow practitioners reach a credible result within the bounds of theoretical best practice.

5. Account for Other Factors To hold water any monetary value expressed as an ROI must account for other factors that can influence output variables. One of the most often overlooked issues—isolating the effects of the programme under evaluation from other factors—is necessary to build credibility and accuracy. Uniquely the Phillips ROI Methodology™ provides a number for techniques to achieve this.

6. Appropriate An effective ROI process must be appropriate to a wide variety of programmes. Some models apply to only a small number of programmes, such as sales or productivity training. The Phillips ROI Methodology™ is applicable to all types of training, human resources and other programmes (for example, talent development, leadership and organisation development), performance improvement, and change initiatives.

7. Flexible The Phillips ROI process has the flexibility to be applied on a pre-programme basis as well as a post- programme basis. In some situations, it provides for an estimate of the ROI to be prepared before a programme is developed or rolled out. And the process is also able to adjust to a range of potential time frames.

8. Applicable The Phillips ROI process is applicable with all types of data, including hard data (such as sales. productivity, rejects, and cycle time) and soft data (such as job satisfaction, customer satisfaction. grievances, and complaints).

9. Successful Track Record The Phillips ROI Methodology™ has a 30 year successful track record. IT has been applied to a variety of applications, in many different organisations – public, private and not for profit. More than 50 text books have been published along with hundreds of case studies and journal articles all of which support the implementation process.

10. Implementation Support The Phillips ROI Institute provides certified training programmes at foundation and advanced levels to help practitioners reach a high level of proficiency in applying the methodology thereby enabling them to implement and embed good practice in their own organisations.

Figure 1 - Elements of the ROI Methodology Figure 2 - The ROI Process

PHILIPS

Figure 3 - The Philips ROI Methodology

Training and CertificationToday, one of the most critical skills any professional can possess is being able to show the accountability of various processes and functions. More than any time in the past, senior executives and other stakeholders are questioning the value of a variety of programmes, projects, and processes. Professionals must show how this value can be measured and reported in a credible, methodical way. The ROI certification process is the standard for achieving and verifying that an individual possesses these skills.

The Phillips ROI Institute provides certified training programmes at foundation and advanced levels to help practitioners reach a high level of proficiency in applying the methodology thereby enabling them to implement and embed good practice in their own organisations.

Courses Foundations Certificate – 2 Day programme to develop foundations skills and enable participants complete their first ROI study. Diploma – 3 Day programme for those who have completed Foundation level to perfect their skills and equip them to train the methodology in their own organisation.

ConsultingThe Phillips ROI Institute provides extensive consulting services to organisations wishing to undertake significant measurement and evaluation projects, deliver in-house customised training in the ROI methodology and provide advice on strategic planning for human capital management, human resources and training initiatives.

Key PersonnelServices to clients in the United Kingdom and Ireland are provided by the two principals of the ROI Institute, Drs Jack and Patricia Phillips and by the UK/Ireland Partner, Gerard M. Doyle.

www.phillips-roiinstitute.co.uk

PHILIPS