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ROI and Feasibility - What to Consider Before You Start
By Dan Norris

ROI or return on investment must be the most talked about concept in learning and development. Kirkpatrick's 4 levels of evaluation have been around since the late 1960s. Yet still these concepts of evaluating training are not filtering into the mainstream L&D community. The most recent in a string of research on the uptake of all 4 levels released by the e-learning Guild recently found that only 13% of people are evaluating the business impact of their e-learning. Clearly evaluation is still a misunderstood and poorly implemented concept in e-learning.

Have a look at the article on e-learning evaluation for a detailed discussion of evaluation however in this article we'll look at some things to consider before you start to make sure you are on the right track.

While a full evaluation is difficult to undertake after you launch a product, it is quite simple to consider these points before you start.

I would encourage you to consider the likely impact of both the product and the project.

Impact of the Product - Kirkpatrick

Will learners complete the training? And why? For example if they are able to choose between an affordable 30 minute online course vs. a more expensive 2 hour instructor led course people may prefer to complete it online. If it is a difficult topic and there is an established, well respected instructor led program, it may be difficult to get people to do the online program.

Will they like the training? Some topics lend themselves to rewarding experiences and some do not. Don't pick something boring - especially as the first course to utilize e-learning in the company.

Is the training likely to change their behavior? Consider a simulated training course for the new HR system that learners complete and apply right away (changing behaviors) vs. rolling out a new workplace bullying course for compliance reasons in an organization with a culture that ignores bullying.

How likely is it that the training will impact on the business problem that you are attempting to solve. It is a big ask for a training program to achieve this but if there is no chance then what is the point?

Impact of the Project

Perhaps the easiest way to justify an e-learning program is based on cost alone and a simple feasibility exercise will determine whether putting something online will save your business money.

Estimate a shelf life for the content - say 24 months. Use the last 24 months as a guide to estimate how much you are likely to spend on the design and delivery of instructor-led training in the next 24 months (if you don't go online). Then consider the amount you will spend on design and delivery of e-learning or on a blended approach. Which one is cheaper? You will find that the more online completions, the more likely you are to realize cost savings. Especially if you consider all instructor-led delivery costs (travel, accommodation, consulting fees, staff time, learner time, administration time, venue hire, printing costs etc).

Considering both the impact of the product and the impact of the project before you start building anything will give you a full picture of whether the course is suitable for online delivery.


Written by Dan Norris, Director of Australian Elearning Developer Connect Media Group

Last updated on 20 May 2008.

 
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