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Gaining Leadership Buy-In
For Your E/M-Learning Initiatives
Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA
Based Upon the Bo...
#elearnbuyin #roilie#atdtk
@bizlearningdude
Building Business Acumen for Trainers:
Skills to Empower the Learning Function (with CD)
Published by Wiley
Terrence Gargi...
Leader’s Expectations
Be able to answer the following…
1. How do your leaders see “training”
2. What “investment” means to...
“Training”?
How do your
leaders categorize...
Please share your answers…
Positioning to Prove Value
Management views “training” in 3 ways:
1. Necessary, expected training
(e.g. job training and d...
“Investments”?
How do your leaders
refer to...
Please share your answers…
Leader’s View of “Investment”
Physical assets?
(e.g. buildings/machinery)
Intangible assets?
(e.g. patents, goodwill)
➔ Do...
We must first recognize
how leaders…
Evaluate
projects!
Building Learning Acceptance
Evaluating
E-learning
Strategy
 Capital investment
 Operational Expenses
 Needs Identifica...
Leadership Decision Tools
 Contribution to major projects
 Assess infrastructure investment
Cost-Volume-Profit
(CVP)
Net...
CVP E-Learning Decision
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
E/M-learning increases fi...
E-Learning Example: FinaX Inc.
• Variable cost: $120 each unit
Management’s question:
Should we spend
$60,000 for e-learni...
E-Learning Example: FinaX Inc.
Revenues
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
$800,000
($200 x 4...
What Do Leaders
Expect?
They want
business impact!
(Kirkpatrick level 4)
Yes, but Ajay...
How do we do this?
Get Learning on the RADAR…
R Resistance
A Apathy
D Disruptions
A Application
R Results
“What will this cost us?”
“What wil...
Leadership Focus
R
R
Financial Results
“What do I get if I give you the money?”
Performance Results
(non-financial)
“What ...
Apply financial tools to build a
case for e/m-learning
Building Learning Acceptance
 Measure the appropriate “return” of
...
Building Learning Acceptance
Apply financial tools to
build a case for learning Leverage existing tools to demonstrate
le...
TrainingIndustry.com
 Lean Learning:
Why You Need to Cut The Fat to Demonstrate Learning
Value
 The CLO Reality:
What It...
Ajay M. Pangarkar CTDP, CPA, CMA
t: 866-489-7378
e: ajayp@centralknowledge.com
@bizlearningdude
Your feedback helps ATD continue to provide top-notch
educational programs that help you stay in top of a
changing profess...
TH503: Gaining Leadership Buy-in For Your E/M-Learning Initiatives
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TH503: Gaining Leadership Buy-in For Your E/M-Learning Initiatives

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Business leaders consider learning and development (L&D), e-learning, m-learning, and LMS initiatives as investments because they call for tangible financial requirements, including technology and supporting infrastructure. Trying to convince them to support your programs based only on qualitative factors or applying an unrecognizable L&D investment evaluation tool is not enough. Proper business and financial justification is required. In this session, you will learn how to build a comprehensive financial evaluation to support any type of e-learning or m-learning related initiative. You will see how relevant ROI tools, such as cost-volume-profit, breakeven, and net-present-value, can be used to evaluate a learning technology investment and differentiate between long-term L&D investments and training expense. Ensure leaders' buy-in by addressing their financial concerns, and show qualitative results by presenting a complete business case.

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TH503: Gaining Leadership Buy-in For Your E/M-Learning Initiatives

  1. 1. Gaining Leadership Buy-In For Your E/M-Learning Initiatives Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA Based Upon the Book The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy
  2. 2. #elearnbuyin #roilie#atdtk @bizlearningdude
  3. 3. Building Business Acumen for Trainers: Skills to Empower the Learning Function (with CD) Published by Wiley Terrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy Ajay M. Pangarkar, Teresa Kirkwood Published by Wiley
  4. 4. Leader’s Expectations Be able to answer the following… 1. How do your leaders see “training” 2. What “investment” means to leaders 3. Evaluate “financial” impact to business 4. Evaluate “qualitative” impact to business
  5. 5. “Training”? How do your leaders categorize... Please share your answers…
  6. 6. Positioning to Prove Value Management views “training” in 3 ways: 1. Necessary, expected training (e.g. job training and development) 2. Measuring impact of major investments (e.g. “training” as a component) 3. Investing in major elements of training (e.g. e-learning infrastructure)
  7. 7. “Investments”? How do your leaders refer to... Please share your answers…
  8. 8. Leader’s View of “Investment” Physical assets? (e.g. buildings/machinery) Intangible assets? (e.g. patents, goodwill) ➔ Does “training” have tangible investments? ➔ Does “training” contribute to long-term value?
  9. 9. We must first recognize how leaders… Evaluate projects!
  10. 10. Building Learning Acceptance Evaluating E-learning Strategy  Capital investment  Operational Expenses  Needs Identification  Learning Retention Learning Aspects Infrastructure Management Needs  Business Objectives  Operational Activities Level 1, 2 Level 3, 4
  11. 11. Leadership Decision Tools  Contribution to major projects  Assess infrastructure investment Cost-Volume-Profit (CVP) Net Present Value (NPV) Return on Investment Evaluation Analyzes project profitability  Cost/volume affect on profitability  Activity level to achieve profit Analyzes changes in costs
  12. 12. CVP E-Learning Decision Revenues Variable Costs Contribution Margin Fixed Costs Operating Income E/M-learning increases fixed costs Question to ask: What extent will e-learning contribute to production/profit? To leaders this means: • Increase revenue (units sold) • Reduce variable costs
  13. 13. E-Learning Example: FinaX Inc. • Variable cost: $120 each unit Management’s question: Should we spend $60,000 for e-learning? • Selling 4000 units for $200/each • Current fixed costs: $200,000 FinaX Inc. sells AccountX Software • New E-learning course: $60,000 • Post course sales incr.: 700 units • E-learning is a fixed cost
  14. 14. E-Learning Example: FinaX Inc. Revenues Variable Costs Contribution Margin Fixed Costs Operating Income $800,000 ($200 x 4000) $480,000 ($120 x 4000) $320,000 ($80 x 4000) $200,000 $120,000 $940,000 ($200 x 4700) $564,000 ($120 x 4700) $376,000 ($80 x 4700) $260,000 $116,000 $140,000 ($200 x 700) $84,000 ($120 x 700) $56,000 ($80 x 1000) $60,000 ($4,000) 4000 units NO e-learning (1) 4700 units w/ e-learning (2) Difference (2) – (1) = (3) Now, what decision would your leader take?
  15. 15. What Do Leaders Expect? They want business impact! (Kirkpatrick level 4) Yes, but Ajay... How do we do this?
  16. 16. Get Learning on the RADAR… R Resistance A Apathy D Disruptions A Application R Results “What will this cost us?” “What will this do for us?” “Why now?” “What will it do for the business?” “What difference will it make?” Level 3-4 Level 4 Level 4 Level 3-4 Level 4
  17. 17. Leadership Focus R R Financial Results “What do I get if I give you the money?” Performance Results (non-financial) “What are the tangible benefits/results?”
  18. 18. Apply financial tools to build a case for e/m-learning Building Learning Acceptance  Measure the appropriate “return” of learning capital elements  Utilize existing financial evaluation tools Build a financial case for e/m-learning Communicate expectations into business results  Demonstrate Level 3 and 4 results  Speak in relatable terms  Respect how each management level perceives “learning” Implement an e/m-learning forecasting process  Treat LD budgets as a nonprofit center  Report results with financial evidence Learning Objectives:
  19. 19. Building Learning Acceptance Apply financial tools to build a case for learning Leverage existing tools to demonstrate learning value  Utilize existing financial evaluation tools How do your leaders see ‘training’? Communicate expectations into business results  Follow RADAR to address leader concerns  Relate learning result in business terms  Respect how each management level perceives “learning” Evaluate financial impact to business Building a Case for Learning  Tie back to financial performance  Report results with financial evidence
  20. 20. TrainingIndustry.com  Lean Learning: Why You Need to Cut The Fat to Demonstrate Learning Value  The CLO Reality: What It Takes to Lead & Manage the Learning Function  Building Strategic Learning Linkages: Mapping & Measuring Your Learning Strategy TrainingMag “Last Word”  Taking Care of Business  Let’s Get Naked! “Workforce Revolution!” blog.centralknowledge.com Thank you…Please Follow My Blog
  21. 21. Ajay M. Pangarkar CTDP, CPA, CMA t: 866-489-7378 e: ajayp@centralknowledge.com @bizlearningdude
  22. 22. Your feedback helps ATD continue to provide top-notch educational programs that help you stay in top of a changing profession. Evaluation forms for this session are available via the mobile app and at the following link: http://www.td.org/TKConf/About/For-Attendees

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