Certified Professional in Talent Development (CPTD) Practice Exam

Which evaluation model converts Level 4 results to financial ROI?

1. Kirkpatrick's 4 Levels of Evaluation

2. Brinkerhoff's Success Case Method

3. Balanced Scorecard Approach

4. Phillips ROI model

The correct answer is: Phillips ROI model

The Phillips ROI model is specifically designed to convert Level 4 results, which focus on the impact of training or programs on organizational performance, into a financial return on investment (ROI). This model provides a structured approach to quantify the monetary benefits gained from training initiatives, allowing organizations to justify their investments in development programs by relating results to measurable financial outcomes. This model is particularly valuable for talent development professionals seeking to demonstrate the effectiveness of their training programs in economic terms. It emphasizes collecting data on the outcomes achieved after program implementation and then calculating ROI by comparing these outcomes to the costs of the training. This financial perspective aligns well with the increasing demand for accountability and evidence of value in organizational training and development. In contrast, the other models mentioned focus on different evaluation aspects but do not specifically provide a framework for converting performance results into ROI. For instance, Kirkpatrick's model emphasizes assessing training effectiveness through four levels (Reaction, Learning, Behavior, and Results) without directly addressing the financial aspect of results. Similarly, Brinkerhoff's Success Case Method concentrates on identifying and analyzing successful cases to assess program effectiveness, and the Balanced Scorecard Approach integrates various performance metrics, not limited to financial outcomes.