methodologies to determine how these long-term costs add value for the organization. This is not the misleading training ROI business leaders will never accept or acknowledge. intensive activity requiring significant investments in technology. Trying to convince decision-makers to purchase the latest and greatest library of eLearning courses or learning management system (LMS) is out of the question if you don't demonstrate long-term organizational value. Build a proper capital investment case by working with your finance and IT departments prior to presenting a learning need to stakeholders. There are two aspects of evaluating return on learning costs: the expenses within an organizational capital investment and the return on investment. Learning cost is one of many costs included when evaluating an organization's capital investments. Without affecting the integrity and value of the investment, stakeholders attempt to reduce costs as much as possible. They will certainly ask you to find ways to lower costs. Do so without affecting the overall value of the investment but also have the courage to say when reductions may have adverse effects. 3. FOSTERING This mindset also applies for your learning infrastructure needs. Learning is a complex and capital- Break-even occurs when profit-center activities exceed costs and start earning profit. More than just compiling total costs, | 44 BUSINESS GROWTH Operational support activities, such as learning, must enable primary profit-center activities. Proposing costs must not adversely impact the profit-center analysis. stakeholders compare the relationship between earned revenue and incurred costs with product and service volume activity. Increased or new fixed costs should lead to more volume activity leading to increased revenue. Typically, learning initiatives are additional fixed costs to the profit center. This implies that additional training costs should, albeit indirectly, contribute to increasing profitability. Practitioners misleadingly believe proving value for learning efforts is about covering costs or demonstrating a direct correlation to profitability. For stakeholders, it is not about covering cost. It is about how additional learning costs affect primary business profitability. Operational leaders must maintain or improve organizational contribution margin (CM). The CM represents the company's business profit beforehttps://www.trainingnetwork.com https://www.trainery.com https://www.traksafety.com https://www.trainingnetwork.com https://www.trainery.com https://www.traksafety.com