The Phillips ROI Methodology extends Kirkpatrick with a fifth level, converting Level 4 business results into monetary value and comparing them against programme cost to produce a return-on-investment percentage.
What it is
It adds two things beyond the extra level: a structured process for isolating training's effect from other influences, and a discipline of converting outcomes to money using agreed standard values.
The isolation step is what distinguishes it from simply dividing benefit by cost, and it is also where most implementations become contestable.
Why it matters
It is the most widely recognised framework for putting a financial figure on training. If your CFO wants a number, this is the vocabulary they are most likely to accept.
A common confusion
The model is not the hard part — the arithmetic is straightforward. The hard part is credible Level 3 and 4 data to feed into it. Most ROI presentations fail on inputs, not method.
Related
See also kirkpatrick model, learning analytics and content effectiveness. See the full glossary for the rest, or proving training ROI to a CFO for the wider context.
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