What Happens When The ROI Model Does Not Fit?

The literature provides numerous case studies and detailed descriptions of the return-on-investment (ROI) process for determining the effectiveness of a training initiative vis-à-vis the organization's strategic plan for performance improvement. However, there are situations where distinct peculiarities hinder an industrial facility's data collection for a ROI process. To overcome these barriers to data collection, I employed the scientific method of hypothetical deductive reasoning to evaluate the effectiveness of the training programs at Georgia Pacific West in Bellingham, Washington. My objective was to customize the Phillips (1997a, 1997b) ROI model to use for a template that Georgia Pacific could adapt as needed for different training courses. In this paper, I will explain the methodology I used to determine the program costs and to measure the effects of the training initiatives that may be used by organizations with similar issues. Moreover, I will describe the development of the data collection methodology through the five performance steps in the ROI model.