4 Responses

1. Have a look
   John,

   An interesting and long asked question. TrainingZONE held a panel debate at this years Training Solutions Show around the issue of Adding Value (where ROI inevitably feeds in). Highlights of the debate can be found at https://www.trainingzone.co.uk/cgi-bin/item.cgi?id=85237 .

   Also use the search tool at the top right of this page to look through the site. I recommend you put in ‘elearning’ and ‘ROI’ as a starting point. In particular the Any Answers section provides many links through to quite a few debates on this issue.

2. Evaluating ROI of e-Learning
   There are really only two valid reasons for making any change to your current learning strategy:

   1) To Improve Effectiveness, i.e. the extent to which the intervention achieves its purpose as measured by:

   -the reactions of learners

   -the level and quantity of learning achieved

   -the behaviour change that takes place as a result

   -the effect on related performance indicators.

   2) To Improve Efficiency, i.e reduce the scale of resources used to deliver a successful solution as indicated by:

   -the cost of developing and delivering the solution

   -the time taken to develop and deliver the solution

   -the number of people and the resources required to deliver the solution.

   There are four key indicators to consider when building your business case and projecting return on investment (ROI):

   -The cost of the learning interventions

   -Any income received from from external customers and agencies or by internal cross-charging

   -The time efficiency of education and training, in terms of its effect on cost

   -Any performance changes arising as a result of education and training.

   The relationship between the indicators is best expressed as a measure of the monetary benefits obtained by an organisation over a specified time period in return for a given investment in a learning intervention.

   This is a huge subject so feel free to get in touch if you need more detailed information or advice.

   Best wishes

3. e-Learning ROI Calculator
   John

   In my previous posting I neglected to mention that Intellinex/Ernst & Young offer a very impressive automated e-Learning ROI Calculator.

   This can be accessed on-line free of charge at:

   http://www.intellinex.com/flash/animations/calc/costcalc_playintro.html

   This could save you a lot of time and effort!

   Regards

4. Where does efficiency come from
   I agree with Adrian Snook’s thorough comments. I would like to add two things around efficiency.

   eLearning can do things that other methods of training can’t do – simplistically, tracking and testing and ensuring learning has been completed and taken on – more effective than merely logging course attendance. On a mopre complex level, games and simulations can engage learners for whom the traditional classroom is a turn-off.
   The other efficiency rating is in time to deploy. The sheer logistics of organising a course around busy people’s diaries often means that new procedures, induction and other “drip-fed” training programmes for a large audience are delayed long after their optimum effectiveness for some individuals. e-learning can speed that process up – so long as the programme has been commissioned to coincide with the launch of the new procedure!!