Certified Meeting Professional (CMP) Practice Exam

Which step in the Phillips ROI Methodology focuses on measuring the changes to business indicators?

1. Learning

2. Application and implementation

3. Impact and consequences

4. Reaction and perceived value

The correct answer is: Impact and consequences

The Phillips ROI Methodology emphasizes a systematic approach to evaluate the impact of training and development programs on organizational performance, particularly focusing on determining the Return on Investment (ROI). The step that focuses on measuring the changes to business indicators is the one that assesses the actual impacts and outcomes that have occurred as a result of the training initiatives. This includes evaluating improvements in productivity, efficiency, quality, and other relevant business metrics following the implementation of the training. In this context, "Impact and consequences" refers to the quantifiable benefits experienced by the organization that can be directly linked to the training efforts. This step is essential as it provides concrete evidence of how training has influenced organizational performance and achieved desired business results. The emphasis on changes to business indicators ensures that stakeholders can make informed decisions about the effectiveness of the training programs and justify the investments made. The other steps in the methodology serve different purposes; for instance, "Learning" focuses on what participants gained in knowledge and skills, "Application and implementation" deals with how effectively participants applied what they learned in their jobs, and "Reaction and perceived value" captures the subjective feedback of participants regarding the training experience. These aspects are important but do not specifically concentrate on measuring the actual changes in key business indicators.