



 



 {"id":6148,"date":"2019-12-01T14:00:59","date_gmt":"2019-12-01T19:00:59","guid":{"rendered":"https:\/\/uxpertise.ca\/?p=6148"},"modified":"2022-06-02T09:21:52","modified_gmt":"2022-06-02T13:21:52","slug":"4-steps-to-building-a-business-case-for-your-lms","status":"publish","type":"post","link":"https:\/\/uxpertise.ca\/en\/4-steps-to-building-a-business-case-for-your-lms\/","title":{"rendered":"4 Steps to Building a Business Case for Your LMS"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">You\u2019re all for investing in a learning management system (LMS), but your <\/span><span style=\"font-weight: 400;\">executive team<\/span><span style=\"font-weight: 400;\"> is a skeptical crew. They may see an LMS as:<\/span><\/p>\n<ul>\n<li><b>Not an investment<\/b><span style=\"font-weight: 400;\"> b<\/span><span style=\"font-weight: 400;\">ut a <\/span><span style=\"font-weight: 400;\">necessary<\/span><span style=\"font-weight: 400;\"> expen<\/span><span style=\"font-weight: 400;\">se for responding to compliance requirements;<\/span><\/li>\n<li><b style=\"letter-spacing: 0px;\">A nice-to-have<\/b> <b style=\"letter-spacing: 0px;\">perk<\/b><span style=\"font-weight: 400;\"> to <\/span><span style=\"font-weight: 400;\">dangle in front of potential recruits, <\/span><span style=\"font-weight: 400;\">not a need-to-have support for your business goals; <\/span><\/li>\n<li><b style=\"letter-spacing: 0px;\">A shiny new <\/b><b style=\"letter-spacing: 0px;\">fun<\/b><b style=\"letter-spacing: 0px;\"> tool <\/b><span style=\"font-weight: 400;\">in educational technology, <\/span><span style=\"font-weight: 400;\">but its <\/span><span style=\"font-weight: 400;\">business impact and ROI are vague, to say the least.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To overcome these perceptions, you\u2019ll need to build a business case that will help your C-suite and other key stakeholders see how an LMS is a Learning &amp; Development (L&amp;D) platform that can positively transform the way you do business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to do that is to review your organization\u2019s goals and challenges and then collect data to show how an LMS can:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ease or solve those challenges;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contribute to growth;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Help the organization attain key metrics.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The following four steps provide you with a path for collecting that data.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b><\/b><b>1. Ensure that your L&amp;D strategy is aligned with your organization\u2019s key objectives<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">No company of any size has escaped the <\/span><span style=\"font-weight: 400;\">consequences<\/span><span style=\"font-weight: 400;\"> of a tightening market for talent and the rising cost of staff turnover, recruiting, and training.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, according to the Conference Board\u2019s global survey of executives, the C-suite ranks attracting and recruiting talent as the <\/span><a href=\"https:\/\/www.prnewswire.com\/news-releases\/survey-business-leaders-start-2020-with-lingering-concerns-about-talent-shortages--recession-risk-300980320.html\"><span style=\"font-weight: 400;\">#1 internal concern<\/span><\/a><span style=\"font-weight: 400;\"> for 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your LM<\/span><span style=\"font-weight: 400;\">S ca<\/span><span style=\"font-weight: 400;\">n reduce the impact of talent issues <\/span><span style=\"font-weight: 400;\">as well as help improve <\/span><span style=\"font-weight: 400;\">productivity. Consider these scenarios:<\/span><\/p>\n<h3><b>Want to attract millennials?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to<\/span><a href=\"https:\/\/www.gallup.com\/workplace\/236438\/millennials-jobs-development-opportunities.aspx\"><span style=\"font-weight: 400;\"> Gallup<\/span><\/a><span style=\"font-weight: 400;\">, 87% of millennials rate &#8220;professional or career growth and development opportunities&#8221; as important in a job.<\/span><\/p>\n<h3><b>Want more engaged employees who stay longer?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Studies show that career development opportunities can lead to higher engagement by your people.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to an <\/span><a href=\"https:\/\/www.ibm.com\/services\/learning\/pdfs\/IBMTraining-TheValueofTraining.pdf\"><span style=\"font-weight: 400;\">IBM study,<\/span><\/a><span style=\"font-weight: 400;\"> employees who don\u2019t feel they can attain their goals in an organization are 12 times more likely to consider leaving compared to employees who feel they can get to their goals. <\/span><span style=\"font-weight: 400;\">New<\/span><span style=\"font-weight: 400;\"> employees<\/span><span style=\"font-weight: 400;\"> are <\/span><span style=\"font-weight: 400;\">30 times more likely to consider leaving.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When new hires <\/span><span style=\"font-weight: 400;\">in this study<\/span><span style=\"font-weight: 400;\"> get training, 62% of them say they intend to stay, compared to 21% who don\u2019t get training \u23af\u23af that\u2019s nearly a 300% increase in retention.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b><\/b><b>2. Total up all the hard costs your LMS will save<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Compared to traditional training, the right LMS will deliver savings by <\/span><span style=\"font-weight: 400;\">helping you:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Cut<\/b><b> instructor and classroom fees,<\/b><span style=\"font-weight: 400;\"> reduce costs to create and update teaching content as well as expenses relating to travel, accommodation, and entertainment for employees and instructors.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Mini<\/b><b>mize<\/b><b> time away from work. <\/b><span style=\"font-weight: 400;\">A mobile-responsive LMS enables learners to learn on any mobile device at any time.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Redu<\/b><b>ce <\/b><b>duplication of instruction<\/b><span style=\"font-weight: 400;\"> because all training comes from one central hub, and that training is uniform for all learners.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Shortening overall training time<\/b><span style=\"font-weight: 400;\"> by 40%-60%, <\/span><span style=\"font-weight: 400;\">compared to conventional in-class instruction. When formal training programs are supported by an LMS<\/span><span style=\"font-weight: 400;\">, learning retention can improve by 25%-60%.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In your business case, do include the savings you\u2019ll gain by retaining new hires and regular employees due to your L&amp;D program.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What\u2019s more, the right LMS will streamline the processes of managing, enrolling, and monitoring your L&amp;D activities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if your LMS is an integrated all-in-one platform with state-of-the-art automation, you\u2019ll liberate your team from many of the repetitive tasks of managing instructional activities and products.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, it\u2019ll be a cinch to assign courses to your team or invite them to follow some. Through handy dashboards, you\u2019ll be able to track progress and compliance at a glance.\u00a0<\/span><\/p>\n<h3><b>Save on compliance<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If complying with industry performance standards is a major business concern, do add compliance to your business case. Reducing the risk, cost, and penalties of non-compliance can add up to significant savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The right LMS can cost-efficiently help train your people, track their progress, provide the right support at the right time, and award certifications.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you can cost-efficiently keep your people complying with standards, what do your savings total? How much more productive will your managers be if they can easily track the progress of your team on their compliance journey?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All these cost-savings (and the resulting improvements in productivity) need to be included in your business case.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b><\/b><b>3. Project what revenues you\u2019ll gain<\/b><b><\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As part of your case, include answers to questions such as these:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">With the LMS giving employees more time at their tasks, what revenues will that bring to your organization?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">When your people in sales, sales support, or customer service can stay more quickly up-to-date on your products, solutions, and market research, how will this new knowledge impact your revenues?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Will you close sales faster or reduce the time to resolve issues?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Will your communications campaigns be more consistent in their messaging if all your marketing team gets on the same page easily and quickly?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Organizations that truly focus on learning and use educational technology benefit from improvements, on average, across numerous functions, like the <\/span><a href=\"https:\/\/www.ibm.com\/services\/learning\/pdfs\/IBMTraining-TheValueofTraining.pdf\"><span style=\"font-weight: 400;\">following<\/span><\/a><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> +9% in staff satisfaction\/engagement<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> +24% in the ability to change procedures or products\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> +14% in improved productivity through learning interventions<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> +17% in customer satisfaction<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> 12% reduction in time to competence<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> 22% reduction in delivery time.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Furthermore, the right LMS can make a meaningful contribution to your goals when you are:<\/span><b><\/b><\/p>\n<ul>\n<li><b>Launching a new product or implementing new processes <\/b><span style=\"font-weight: 400;\">Training your team efficiently and flexibly will <\/span><span style=\"font-weight: 400;\">reduce<\/span><span style=\"font-weight: 400;\"> your time-to-market and <\/span><span style=\"font-weight: 400;\">boost<\/span><span style=\"font-weight: 400;\"> productivity.<\/span><\/li>\n<li><b>Merging with, or acquiring, another company<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\">Get all your people effectively on the same page about the new culture and ways of doing.<\/span><\/li>\n<li><b>Helping managers adapt to an economic downturn <\/b><span style=\"font-weight: 400;\">by coaching them on change mastery, productivity, and leadership skills.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Train managers to boost their adaptability.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><b>4<\/b><b>. Calculate yo<\/b><b>ur RO<\/b><b>I<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In this discussion of the data to collect for your business case, we took a big-picture approach.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s because your LMS will impact the whole organization. You\u2019re going to attract more employees, keep them longer, cut numerous in-class training costs, and generally improve the productivity of your team in a broad range of roles.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you do your ROI calculation, you\u2019ll have to include, of course, the costs of your LMS system. If you work with an LMS vendor supporting a mobile-ready, cloud-based platform, you won\u2019t have to spend any money on IT hardware, support, and on-going platform maintenance. Those cost-savings can quickly add up.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So when you do your number-crunching,<\/span><span style=\"font-weight: 400;\"> what d<\/span><span style=\"font-weight: 400;\">o the results<\/span><span style=\"font-weight: 400;\"> look like? Do they show exciting potential for benefiting your bottom line?\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most likely, those numbers will show that an LMS is an investment that positively contributes to growth, productivity, and happier talent.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>To learn more about the positive business impact an LMS can have on your business, <a href=\"https:\/\/uxpertise.ca\/en\/contact\">connect with us<\/a> today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You\u2019re all for investing in a learning management system (LMS), but your executive team is a skeptical crew. They may see an LMS as: Not an investment but a necessary expense for responding to compliance requirements; A nice-to-have perk to dangle in front of potential recruits, not a need-to-have support for your business goals; A [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":6150,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[116,142],"tags":[106,111,154,187,189,226],"class_list":["post-6148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-learning-management-system","category-blog","tag-ld","tag-employee-training","tag-lms","tag-hr-en","tag-edtech-en","tag-compliance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.4 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>4 Steps to Building a Business Case for Your LMS - uxpertise<\/title>\n<meta name=\"description\" content=\"You\u2019re all for investing in an LMS, but your executive team is a skeptical crew. 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