CPT Performance Consulting & ROI Measurement 1 — Questions and Answers
Question 1: What is the primary goal of performance consulting in a training context?
- To design eLearning modules for employees
- To identify root causes of performance gaps before recommending solutions (Correct answer)
- To create competency frameworks for all roles
- To schedule and coordinate training sessions
Correct answer: To identify root causes of performance gaps before recommending solutions
Performance consulting focuses on diagnosing root causes of performance gaps rather than immediately prescribing training solutions.
Question 2: Which model is most commonly associated with calculating training Return on Investment (ROI)?
- ADDIE Model
- Kirkpatrick Model
- Phillips ROI Methodology (Correct answer)
- Bloom's Taxonomy
Correct answer: Phillips ROI Methodology
Jack Phillips extended Kirkpatrick's model by adding a fifth level (ROI) and a methodology for calculating the monetary return of training.
Question 3: In the Phillips ROI process, what must be done before calculating ROI?
- Identify the training vendor
- Isolate the effects of training from other variables (Correct answer)
- Survey all participants post-training
- Develop a new training curriculum
Correct answer: Isolate the effects of training from other variables
Isolating the effects of training is a critical step to ensure that measured business improvements are attributable to training rather than other factors.
Question 4: A performance consultant discovers that employees already know how to do their job correctly but choose not to. This is BEST described as a:
- Knowledge gap
- Skill gap
- Motivation or consequence gap (Correct answer)
- Training design flaw
Correct answer: Motivation or consequence gap
When employees have the knowledge and skills but don't perform, the issue typically lies in motivation, consequences, or work environment rather than a training need.
Question 5: Which of the following is a non-training solution a performance consultant might recommend?
- A two-day instructor-led workshop
- Redesigning the incentive and rewards structure (Correct answer)
- Building a new eLearning course library
- Conducting a training needs assessment survey
Correct answer: Redesigning the incentive and rewards structure
When performance issues stem from misaligned incentives, redesigning the reward structure addresses the root cause without relying on training.
Question 6: When converting training benefits to monetary value in an ROI study, which approach involves asking managers to estimate the value of a performance improvement?
- Historical data analysis
- Expert estimation (Correct answer)
- Control group comparison
- Participant self-report
Correct answer: Expert estimation
Expert estimation uses the informed judgment of managers or subject matter experts to assign monetary values when hard data is unavailable.
Question 7: The formula for calculating training ROI is:
- (Net Benefits / Training Costs) x 100 (Correct answer)
- (Gross Revenue - Training Costs) / Number of Trainees
- (Training Costs / Net Benefits) x 100
- (Participant Satisfaction Score / 5) x 100
Correct answer: (Net Benefits / Training Costs) x 100
ROI (%) = (Net Benefits / Program Costs) × 100, where net benefits equal total benefits minus total program costs.
CPT Performance Consulting & ROI Measurement 1
What is the primary goal of performance consulting in a training context?