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.

2. 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

3. #elearnbuyin #roilie#atdtk
@bizlearningdude

4. 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

5. 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

6. “Training”?
How do your
leaders categorize...
Please share your answers…

7. 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)

8. “Investments”?
How do your leaders
refer to...
Please share your answers…

9. 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?

10. We must first recognize
how leaders…
Evaluate
projects!

11. 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

12. 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

13. 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

14. 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

15. 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?

16. What Do Leaders
Expect?
They want
business impact!
(Kirkpatrick level 4)
Yes, but Ajay...
How do we do this?

17. 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

18. 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?”

19. 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:

20. 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

21. 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

22. Ajay M. Pangarkar CTDP, CPA, CMA
t: 866-489-7378
e: ajayp@centralknowledge.com
@bizlearningdude

23. 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