Using ROI to Justify Your Online Learning Initiative

© Project Tomorrow 2011
Using ROI to Justify Your
Online Learning Initiative
Twitter: #vss309x7
Julie Evans, Project Tomorrow CEO
November 11, 2011

About Project Tomorrow
(www.tomorrow.org)
leading education nonprofit organization
dedicated to the empowerment of
stakeholder voices in education
programs include the Speak Up National
Research Project and related research

About Speak Up
National research project to inform federal, state & local
policies, programs and funding for ed tech
Over 2.2 million online surveys submitted since 2003 from
K-12 students, parents, teachers, librarians &
administrators
National reports produced annually on the data results
Research topics include:
• Online Learning
• Mobile Learning
• Digital Content

Calling all students, parents & educators to participate
in Speak Up 2011!
New online surveys for students,
parents & educators open for input:
October 10 - December 23
Data back to schools & districts –
use for grants & planning
February 2012
National data release –
inform national/state policies & funding:
March 2012
Learn more at www.tomorrow.org
Enable, engage, empower your
school’s stakeholder voices!

A special report:
The New Math for
Justifying Online Learning
Leveraging ROI and VOI Analysis
for Ed Tech Investments
Released in July 2011 in
collaboration with Blackboard, Inc.

Let’s Talk ROI & VOI
Which of these are critical for your district?
1. Achieving your district’s core mission
2. Managing through fiscal difficulties
3. Leveraging technology to drive greater
productivity and efficiency

Which of these are critical for your district?
1. Achieving your district’s core mission
2. Managing through fiscal difficulties
3. Leveraging technology to drive greater
productivity and efficiency
4. All of the above

Are you also increasingly being asked these
questions?

Are you also increasingly being asked these
questions?
What is the
return on that investment?
What is the
value of that investment?

Three goals with this new report:
1. Spark new discussions re: investment decisions
2. Provide real world insights from district leaders
3. Empowering districts with a new methodology and
language for justifying ed tech decisions
(online learning projects as a proxy)

Today’s discussion:
• Review of report methodology
• Share highlights from report
• Introduce you to a new tool
• Your thoughts and comments

Report Methodology
Guided by five key questions:
1. What factors are driving online learning projects?
2. What does VOI and ROI mean in an education setting?
3. What is the “new math” for justifying these decisions?
4. What can we learn from some innovative districts?
5. How can education leaders use this information?

Report Methodology
Development process:
• Literature review
• Research on ROI/VOI decision-making
• Analysis of Speak Up national data
• Survey of 34 district administrators
• In-depth interviews with 10 district leaders

Report Methodology
Interviewees represented the following districts:
Baltimore City Public Schools (MD)
Fairfax County Public Schools (VA)
Jefferson County Public Schools (CO)
Lubbock Independent School District (TX)
Marion County Public Schools (FL)
Mooresville Graded School District (NC)
Polk County Public Schools (FL)
School District of Clay County (FL)

Increased interest and demand for online learning
Over 1/3 of students in grades 6-12 (who have not taken
an online class) would like to take an online class
5X more parents now say that online learning is
a good investment for their child’s school
26% of teachers now say they prefer online courses
for their professional development
Source: Speak Up 2010 National Findings

Source: Speak Up 2010 National Findings
Audience 2008 2010
Administrators 21% 36%
Teachers 49% 53%
Traditional students 24% 40%
Home-schooled students 5% 13%
Students in continuation schools 3% 18%
At risk students 10% 16%
Administrators: Who is your primary audience for online classes?

Example: Teachers’ Professional Development
Three key motivating factors:
1. Solve training logistical challenges
2. Address state and federal compliance training issues
3. Leverage online learning for greater cost effectiveness

2. What does VOI and ROI mean in an education setting?

2. What does VOI and ROI mean in an education
setting?
Defining VOI – Value of Investment
Looks at how the investment achieves the core mission
Analysis success dependent upon clear cut objectives
Can evaluate both interim and end outcomes
but head-on comparisons are difficult unless
program goals are similar
Traditionally the more comfortable analysis method
for education leaders

setting?
Defining VOI – Value of Investment
Example: Mooresville Graded School District (NC)
“Digital Conversion” driven by district
strategic plan to transform teaching
and learning district wide.
Re-purposed budget line items to be
cost neutral.
Per Dr. Smith, “LMS is the glue that
holds this all together for our district.”

setting?
Defining ROI – Return on Investment
Earnings generated per dollar of investment :
comparing solution costs to monetary benefits
Monetary benefits as savings and/or new revenue
Provides way to compare investments with an objective,
financially focused assessment
Traditionally, has not been a standard practice in K12
education due to inherent challenges

setting?
Inherent challenges & opportunities:
• 56% of administrators in the survey has little or no
familiarity with ROI
• Only 18% had to complete an ROI analysis to
justify their current online learning project
• 85% said they would use a set of ROI tools to
evaluate future investments
• 75% of administrators say they would use these
ROI tools for other ed tech decisions

setting?
Example: Marion County Public Schools (FL)
Catalyst for online teacher PD was
financial.
New legislation required teacher
training – contract required teachers to
be paid a stipend for afterschool PD.
Online PD avoided the stipend pay and
saved over $45,000. And provided
way to “testdrive” online learning.

setting?
Investment
Justification
VOI Analysis
Value of Investment
ROI Analysis
Return on Investment

3. What is the “new math” for justifying these decisions?

3. What is the “new math” for justifying these
decisions?
Introducing . . . . . .
A New Tool for District Leaders:
The Online Learning Justification Ladder

3. What is the “new math” for justifying these
decisions?
A New Tool for District Leaders:
Step 1: How?
Step 2: Who?
Step 3: What?
Step 4: When?
Step 5: Where?
Step 6: Why?

Step 1: How?
Step 2: Who?
Step 3: What?
Step 4: When?
Step 5: Where?
Step 6: Why?
The questions provide a
structured way to collect
the data you need for
either an ROI or a VOI
analysis. And provide a
format for articulating the
analysis results to your
stakeholders and/or
decision-makers.

Ladder Step 1: How?
How are you approaching the justification of
your online learning project? Using an ROI
or VOI analysis? Or both?
Is an ROI analysis required to gain approval
or commitment?
Or it is more important to articulate the
benefits through a VOI analysis?

Ladder Step 1: How?
How are you approaching the justification of your online
learning project? Using an ROI or VOI analysis? Or both?
Is an ROI analysis required to gain approval or
commitment?
Or it is more important to articulate the benefits through a
VOI analysis?
Jefferson County Public Schools Virtual Academy

Ladder Step 2: Who?
Who is your targeted audience for your
online learning project?
What are the needs of this audience?
What are the current and future costs of
meeting those needs?
Why is online learning the best solution for
this particular audience and their needs?

Ladder Step 2: Who?
Who is your targeted audience for your online learning
project?
What are the needs of this audience?
What are the current and future costs of meeting those
needs?
Why is online learning the best solution for this particular
audience and their needs?
Fairfax County Public Schools
Lubbock Independent School District

Ladder Step 3: What?
What is your specific online learning project
that will address the needs of the targeted
audience? What online courses or
environment are you providing?
What are all of the costs associated with
your solution?
What is the value-add of your solution?
How will this solution impact student
achievement?

Ladder Step 3: What?
What is your specific online learning project that will
address the needs of the targeted audience?
What online courses or environment are you providing?
What are all of the costs associated with your solution?
What is the value-add of your solution? How will it impact
student achievement?
School District of Clay County

Ladder Step 4: When?
When will your participants access the
online learning course or the environment
that you are providing?
During the school day, afterschool, during
summer recess, in the evening?

Ladder Step 4: When?
When will your participants access the online learning
course or the environment that you are providing?
During the school day, afterschool, during summer recess,
in the evening?
Jefferson County Public Schools
Lubbock County Independent School District

Ladder Step 5: Where?
Where will your participants be when they
access the online learning course or the
environment that you are providing?
At home, in the classroom, in a computer
center, at the library, in the faculty room?

Ladder Step 5: Where?
Where will your participants be when they access the
online learning course or the environment that you are
providing?
At home, in the classroom, in a computer center, at the
library, in the faculty room?
Mooresville Graded School District
Fairfax County Public Schools

Ladder Step 6: Why?
Why is your online learning project a
justifiable decision by either ROI or VOI
standards?
If ROI, what the cost savings or new
revenue derived from the investment?
If VOI, how does this project address our
core mission as a district?

Ladder Step 6: Why?
Bottom line:
Why is this project a
good investment of our
district’s time and/or
resources?

ROI Analysis – some factors to consider:
Budget expense line items
• Meeting costs – travel costs
• Print materials, textbooks and curriculum guides
• Teacher stipends / substitute fees
• Redundant software licenses
• Communications with parents
• Transportation costs

ROI Analysis – some factors to consider:
Sources for new revenue
• Fees for PD courses – internal and external staff
• Fees for summer school courses
• Selling district courses
• Virtual school management and/or consulting

VOI Analysis – some factors to consider:
Potential value propositions
• Course expansion and credit recovery
• Student engagement, achievement, productivity
• Teacher productivity
• Increased participation in PD
• Parental/community interactions
• Curriculum alignment and consistency
• Increased staff morale and motivation
• Greener approach
• Competitive edge

Report includes:
• Three case studies
• Jefferson County PS – Teacher PD Program
• Clay County Schools – Home Connections Program
• Lubbock ISD – Online Summer School
• Ladder worksheet

Recommendations on leveraging ROI and VOI
1. Know what you need to gain approval
2. Create a comprehensive plan
3. Don’t overreach but target a high profile need
4. There is no such thing as a free lunch
5. Don’t be afraid of ROI
6. Engage your stakeholders in the justification process
7. As your project matures, the label “project” is no longer
appropriate
8. You can do this!

Three goals with this new report:
1. Spark new discussions re: investment decisions
2. Provide real world insights from district leaders
3. Empowering districts with a new methodology
and language for justifying ed tech decisions
(online learning projects as a proxy)

• National Speak Up Findings and reports
• Additional data analysis from Speak Up 2010
• Presentations, podcasts and webinars
• Evaluation services
• Reports and white papers
• Participate in Speak Up 2011!
More Speak Up? www.tomorrow.org

New Speak Up 2011 Questions: Administrators
How does your district's overall budget for education technology
initiatives and projects compare this year with your budget
in the 2008/2009 school year?
If your ed tech budget is less than desirable this year, how are
you dealing with that situation?
Which if any of these technology solutions are you considering
for your district to at least partially help your budget
situation?
Increasingly administrators are being asked to justify their
technology investments. Which of these outcomes have
proven to be good justifications for technology investments
in your district?

Your thoughts and comments!
Julie Evans
Chief Executive Officer
Project Tomorrow
jevans@tomorrow.org
www.tomorrow.org
Twitter: JulieEvans_PT

Using ROI to Justify Your Online Learning Initiative

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