In this webinar we'll discuss 5 key elements to include in your business case for online employee training and development. www.bizlibrary.com/webinars

2. BIZLIBRARY.COM

3. ?
THE MOST COMMON OBJECTION FROM SENIOR EXECUTIVES ABOUT LEARNING INITIATIVES IS…
a.Training and development does not impact the bottom line.
b.The cost of training is more than the benefit.
c.Things are fine the way they are.
d.Something else.

4. ?
IN YOUR ORGANIZATION, WHAT ARE YOUR BIGGEST CHALLENGES WITH CHANGE…
a.Timing – “this just isn’t a good time”
b.Budget
c.Lack of senior leadership support
d.Lack of employee buy-in or participation
e.Something else

5. WHAT WE HOPE YOU’LL LEARN
The core elements of a business case.
Anticipating and overcoming the most common objections from your senior executives
SCENARIO ANALYSIS
CAUSE/ EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
5

6. Executives Want to See More Impact and Value
RANKED IMPORTANCE TO EXEC’S
MEASURE
LEARNING EVALUATION LEVEL
EXAMPLE
CURRENTLY MEASURED
1
Impact
4
“The Accel project contributed 20% to our reduction in error rates this fiscal.”
8%
2
Value
5
“Within one year, the East program will achieve a 2:1 benefit-cost ratio.”
4%
3
Awards
0
“Our learning program won an award from Chief Learning Officer magazine.”
40%
4
Application
3
“78% are applying their new skills to their jobs”
11%
5
Learning
2
“92% of participants increased their skills”
32%
6
Activity
0
“Last year 7,800 employees participated in our learning programs”
94%
7
Efficiency
0
“Formal learning costs $2.15 per hour”
78%
8
Reaction
1
“Employees rated our training very high with an average of 4.5 on a 5 point scale”
53%
Source: How Executives View Learning Metrics by Patti and
Jack Phillips, CLO Magazine, Dec 2010

8. 1
2
3
SCENARIO ANALYSIS
4
5
CAUSE/EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORGANIZATIONAL GOALS
5 KEY ELEMENTS OF A BUSINESS CASE

9. RISKS OF THE STATUS QUO
What could happen to the company's bottom line?
SCENARIO ANALYSIS
CAUSE/
EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
Could the company lose customers?
Or market share?
Could some future costs be avoided if the investment is made today?

11. WHY VIDEO AND ELEARNING?
COST
Reduce training budget without sacrificing effectiveness
REACH
More employees, at lower cost
TRAVEL
Reduce or eliminate travel costs
PRODUCTIVITY
Ensure productivity and minimize away from work

12. FEATURE
BENEFIT
EFFICIENT
Capable of teaching the same material in less time and reducing the duration of class time
ADAPTABLE
Addresses both formal and informal learning needs
AVAILABLE
No need to schedule learning with a 24x7x365 solution
SCALABLE
Reaches more employees faster and with greater consistency
EFFECTIVE
Found to be as effective as face-to-face learning*
ECONOMICAL
Cost -effective for any size audience
*U.S. Department of Education, Office of Planning, Evaluation, and Policy Development, Evaluation of Evidence-Based Practices in Online Learning: A Meta-Analysis and Review of Online Learning Studies,
Washington, D.C., 2009, revised 2010.
ONLINE LEARNING MAKES SENSE

13. It takes all the running you can do, to keep in the same place.
If you want to get somewhere else, you must run at least twice as fast as that.
The Red Queen
Through the Looking Glass by Lewis Carroll

14. SCENARIO ANALYSIS
Most likely results
SCENARIO ANALYSIS
CAUSE/
EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
Best Case scenario
Worst case scenario

15. CAUSE/EFFECT ANALYSIS
Your training program improves the employee’s ability to do the job.
SCENARIO ANALYSIS
CAUSE/
EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
That improvement has a positive impact on the business.
That impact results in a financial benefit to the company.

17. BUSINESS IMPACT
IMPROVE EMPLOYEE PERFORMANCE IN AREAS THAT IMPROVE ORGANIZATIONAL OUTCOMES

18. COST JUSTIFIED VS. ROI
QUALITY . EFFECTIVENESS . JOB IMPACT .
BUSINESS RESULTS

19. REPORT: VALUE OF TRAINING ON WRITING SKILLS FOR ACCOUNT REPRESENTATIVES AND CUSTOMER SERVICE REPS
Goal: Reduce turn around time on bug fixes from an average of 21 days to 10 days.
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x

20. $1,155,000
80% OF THE BUGS REQUIRED A RETURN OF THE WRITTEN REPORT TO THE REP FOR CLARIFICATION.
$50 / DAY – OVER 6 MONTHS – 1,100 BUGS
VALUE:
The expected value to be gained is measured by using the average revenue lost for each day the service is down for customers due to sloppy or unclear written explanations of bugs to the programmers.

21. TRAINING COSTS:
Human Resources: $90,000
Reps: $300.000
Total = $390,000
VALUE ADDED FROM IMPROVED PERFORMANCE:
500 reps X $600/day/rep
Access to online writing courses including time to take and complete 5 courses each and successfully complete writing evaluations to prove increased skills. 2 HR reps needed to administer program and build writing evaluations.
IMPACT:
•Less than 10% of written reports of bugs were returned for rewrites in 6 months after program.
•Average bug fix reduced from 21 days to 12 days.
•Total bugs affected 1,210.
TOTAL VALUE GAINED:
$544,500 ON A $390,000 PROGRAM

22. KPI’S FOR EACH BENEFIT
Identify the KPI for the business problems you are trying to solve.
SCENARIO ANALYSIS
CAUSE/
EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS
What will improved performance
look like, and how will we know?

23. GOAL ALIGNMENT
A process of continuous adjustment to keep the parts in their correct relative position.
SCENARIO ANALYSIS
CAUSE/
EFFECT ANALYSIS
KPI’S FOR EACH BENEFIT
RISK OF THE STATUS QUO
ALIGN WITH ORG’S GOALS

24. BARRIERS TO PROGRAM ADOPTION
Will employees participate, use it etc…
What are the costs? What’s the value?
Is the learning initiative relevant to our business needs?

25. RESISTANCE
SUCCESS STRATEGIES
No Help
•Create an advisory committee
•Use a coach
•Ask supervisors for support and provide them tools
Communication
• Work with your internal learning team to develop strategies for high-level and end-user communication
Not Enough Time
•Focus on just-in-time learning: search and learn, job aids
•Deliver kickoff events, blended learning, learning labs
•Emphasize time management courses
•Create learning in progress signs
Fear and Anxiety
•Nurture safety and trust with perceived freedom of choice
•Focus on individual needs and help folks to see the benefits of having online learning available
Not Relevant
•Emphasize on-the-job application
•Understand the goals of others and ask questions: “how can you use this initiative to meet your goals?”

26. YOUR BUSINESS CASE
EXECUTIVE SUMMARY (1 page)
Objective sentence and bullet points on each key element
CURRENT SITUATION (1-2 pages)
The business challenges being addressed and business goals to be met.
PROPOSED SOLUTION (2-3 pages) Explanation of the solution – include a simple statement of each expected benefit and risk assessment of the status quo.
1
2
3

27. YOUR BUSINESS CASE
EXPLANATION OF BUSINESS BENEFITS(2-3 pages)
A thorough analysis of the bottom-line impact including business benefit gains and costs of the proposed solution (ROI) EMPHASIS on business benefits
CONCLUSION (1page)
Executives will “bottom-line” it, so they will inevitably read the summary and conclusion before reading anything else. Be concise and cover each major element of business case.
SUPPORTING MATERIAL (3-4 pages)
Include key supporting material, data and research.
4
5
6

28. 1.Don’t get stuck on ROI only. Communicate the cost justification and strategic impact of your training initiatives.
2.Plan and organize. Understand your current situation, where you want to be and when and how you will get there.
3.Know the facts and risks back it up with data.
4.Communicate how your plan will benefit the overall organizational goals.
KEY TAKE-AWAYS

30. BIZLIBRARY.COM
UPCOMING WEBINARS
www.bizlibrary.com/webinars
Onboard, Not Overboard, Accelerating New Hire Training
Tuesday, Sept. 9th
1:00 C / 2:00 E
Employee Training – Why Short Video Gets Big Results Tuesday, Sept. 16th 1:00 C / 2:00 E

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Jessica Petry
Marketing Specialist
jpetry@bizlibrary.com
@JessLPetry
@BizLibrary
Chris Osborn
Vice President of Marketing
cosborn@bizlibrary.com
@chrisosbornstl