Elearning! - December 2007/January 2008 - (Page 36)

thebusinessvalueofe-learning SUMMARY AND NEXT STEPS The complexities of this situation have caused some professionals to steer ROI calculations away from cost comparisons alone. For example, in a recent article in Training magazine that focused on ROI in e-learning, readers were asked to submit ROI studies for inclusion in a future article. The request included a notation that studies must not be based on cost savings alone, but must also show the full ROI calculation. This was intended to underscore the importance of a complete, accurate analysis, as described here. For designers and developers, there are some lessons on conducting credible ROI studies. Showing the cost-versus-benefit of an e-learning approach is no different than any other delivery method. Many e-learning programs are developed on the assumption that converting facilitator-led programs to e-learning platforms are more cost-effective and practical. To ensure that this is the case, the ROI of the facilitatorled program should be compared with the ROI of the e-learning version to determine its true cost savings and utility. Essentially, running the two programs parallel may be the most preferred way to gather this data. The good news is that cost reductions are so significant that even if the instructor-led and e-learning benefits are not always on the same level, the e-learning approach may still result in a much more positive ROI. In fact, many organizations have shown that investments in learning technologies are paying off with clear cost savings, efficiency gains, increased content reuse, and decreased costs of learning development and delivery. The key is to ensure that the e-learning project or solution is connected to one or more business measures that will reflect its overall success. In reality, most learning or e-learning projects are undertaken to deliver business value. It is important to remember that positioning an e-learning project to add value requires a more broad-based view than a simple ROI calculation. Using the ROI process to collect results data at multiple levels of impact and show how results are linked to targeted business measures is an effective way to demonstrate the worth of e-learning projects and add credibility to the e-learning function. Since e-learning is an investment that impacts multiple areas of an organization, a strategic “line-of-sight” on the organizational use of e-learning is critical. Key questions include: >> How does your e-learning function provide strategic value? >> How does your strategic activity translate into business results? >> Do your e-learning programs make you more responsive to your customers? >> Is your organization able to innovate more effectively as a result of e-learning investments? >> Do those who need information have greater access to it? >> Do e-learning services help your organization achieve its core capacities more effectively? More evaluation work is needed in the e-learning arena, so give us your input, conduct your own impact studies, share lessons learned and best practices … and stay tuned. —Jack Phillips, Ph.D., is chairman of the ROI Institute and a world-renowned expert on accountability, measurement and evaluation. Using more than 20 years of professional experience, he has developed a sound, tested methodology for calculating true financial ROI for training, leadership, marketing, e-learning and performance improvement initiatives. Visit the ROI Institute at www.roiinstitute.net. — Holly Burkett, MA, SPHR, CPT, Principal of Evaluation Works, is a certified ROI professional with more than 18 years experience in performance improvement and measurement. Editor-in-chief of ISPI’s Performance Improvement Journal, she recently co-authored “The ROI Fieldbook” with Jack and Patti Phillips and Ron Stone (2006). Reach her via e-mail at burketth@ earthlink.net. 36 December 2007 / January 2008 Elearning! Even if instructor- led and e-learning beneﬁts are not always the same level, the e-learning approach may still result in a much more positive ROI. http://www.roiinstitute.net

Table of Contents Feed for the Digital Edition of Elearning! - December 2007/January 2008

Elearning! - December 2007/January 2008 Contents Editor’s Note News Google Tops List Learning Hours Increase Web 2.0 Whitepaper Available Listing World-Class Learners Kick Your Career in High Gear Trendline Best of Elearning! Awards Happy Birthday to Us Virtual Worlds for Learning Learning Leaders: Innovation, Excellence Learning Leaders Case Studies The Business Case of E-learning The Business Case for E-learning Case Study: Adecco Case Study: GlaxoSmithKline Case Study: Williams Scotsman New Products Collaboration Tools Content Pop Quiz Last Word

Elearning! - December 2007/January 2008

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