th503: gaining leadership buy-in for your e/m-learning initiatives
TRANSCRIPT
Gaining Leadership Buy-InFor Your E/M-Learning Initiatives
Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA
Based Upon the BookThe Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy
#elearnbuyin #roilie#atdtk
@bizlearningdude
Building Business Acumen for Trainers: Skills to Empower the Learning Function (with CD) Published by WileyTerrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood
The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy Ajay M. Pangarkar, Teresa KirkwoodPublished by Wiley
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
“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 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)
“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)
➔ Does “training” have tangible investments?
➔ Does “training” contribute to long-term value?
We must first recognize how leaders… Evaluate
projects!
Building Learning Acceptance
EvaluatingE-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
Leadership Decision Tools
Contribution to major projects Assess infrastructure investment
Cost-Volume-Profit(CVP)
Net Present Value(NPV)
Return on InvestmentEvaluation
Analyzes project profitability
Cost/volume affect on profitability Activity level to achieve profit
Analyzes changes in costs
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
E-Learning Example: FinaX Inc.
• Variable cost: $120 each unitManagement’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
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?
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 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
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?”
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:
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
TrainingIndustry.comLean 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
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