The Four E’s: How To Find A Value For Money LMS Based On Effectiveness, Efficiency, Economy, And Equity

How To Find A Value For Money LMS Based On Effectiveness, Efficiency, Economy, And Equity

If you’re sizing up the options for different LMS solutions in your budget range, you’re probably focused on the features available to you. Yes, it is important that the LMS you implement is employing the latest technologies. However, the value it brings to your organization is a complex consideration of price and value. Take the time to evaluate the LMS based on its features, analytical capabilities, and the ability to operate across multiple devices. Think about the system in terms of an investment that must be valuable. Tackle the four E’s and you’ll invest in a value for money LMS that enhances User Experience and delivers true ROI.

eBook Release: Value For Money LMS: How To Find A Platform That Offers The Best Return On Your Investment
eBook Release
Value For Money LMS: How To Find A Platform That Offers The Best Return On Your Investment
Discover all you need to know about the importance of finding a value for money LMS platform that offers the best ROI.

What Are The Four E’s When It Comes To Choosing A Value For Money LMS?

Going back to your old economics study days, you might remember the three E’s model for assessing value for money. The model encompasses Economy (spending less), Efficiency (spending well) and Effectiveness (spending wisely). It’s a useful framework to reapply here when you’re assessing the value for money of an LMS. The three E’s – plus a fourth, Equity – define the decisions you need to make to balance the cost of investment against potential opportunity and find a value for money LMS.

1. Economy

Economy refers to the price you pay, quantitively and qualitatively, when you invest in the LMS. In essence, you want to pay the smallest amount possible while still obtaining the quality you require. In LMS terms, you want that investment in time, money, and communications to be as low as possible. You then need to balance that with the need to implement a value for money LMS that transforms your L&D environment.

2. Efficiency

Efficiency forces you to think in terms of inputs and outputs. Are you getting out what you put in? For an LMS investment to be a good value for money option, you want a system that’s easy to roll out and train. You’ll need to be able to move your existing resources across quickly and employ as few people as possible to support the LMS environment. Does that input of effort and cost translate into the results you want? That might be a 100% compliance level or a higher user satisfaction level. Even an increase in employee engagement.

3. Effectiveness

Effectiveness measures the impact of your investment against the expectations you outlined. Your business case for a new, value for money LMS will be based on a number of factors: increased completion rates, higher skills training, better customer and employee satisfaction. Data to support these KPIs will need to be extracted from the LMS and analyzed on an ongoing basis. When you’re considering value for money, be very clear on the factors for measuring success.

4. Equity

Equity refers to the degree to which everyone benefits fairly from an investment. This is an important consideration in LMS investment because you must demonstrate the benefits outside of the L&D team. The business case cannot be built upon time saving and consistency amongst your L&D team alone.

The LMS must positively benefit your corporate learners, as well as managers. This can be achieved by providing better management information for their recruitment and performance management decisions. Senior leaders should see a tangible impact on the bottom line thanks to the associated cost and time savings.

Considering Equity also forces you to look at the limitations of the investment. Can everyone feel the benefit of the LMS regardless of location (think about network bandwidth or usability across devices)? Is the LMS able to cater to those with a disability, visual impairment or deafness? Are all languages covered?

Think about rollout training and communications. How will you ensure the time is well spent? Consider the change from classroom to online training. Is there a negative impact for home-based colleagues of missing out on human interaction? In what ways will you counteract this impact?

Insider Secrets To Find A Value For Money LMS That Οffers Τhe Total Package

There are several ways to weigh the options and find a value for money LMS. The first is to test it out through a free demo. Many LMS vendors offer personalized walkthroughs so that you can see if the tool fulfills your requirements. It’s wise to create evaluation criteria for each of the four E’s before the free demo/trial. Create a list of questions to ask for every category.

For example, when evaluating the effectiveness of the tool, consider whether the tool will help you provide personalized online training resources to improve compliance rates. Be as specific as possible. Hence, you can determine if the platform aligns with your needs and business goals.

Another way to compare your available options is to research ratings and reviews from past users. This gives you the opportunity to see how the product stacks up in real-world situations. Instead of merely reading about the USPs, you get to explore its strengths and weaknesses from those who’ve tried it firsthand.

Things To Consider When Choosing A Value For Money LMS

It doesn’t have to feel like school. The Four E’s are a useful framework for guiding your planning and discussions. Considering the impact the LMS will bring to your organization in each of these areas will determine the value for money. You should refer to this analysis in all your negotiations with your LMS vendor.

You can then use this as justification with your senior leaders when deciding to invest in the eLearning project. It’s hard enough to get funding in today’s cost-conscious environment, without having to struggle to build a business case. Assess the investment around Economy, Efficiency, Effectiveness, and Equity and your LMS will provide the transformation your L&D strategy requires.

Our free eBook Value For Money Learning Management Systems explores everything you need to know to choose an LMS that offers the best value for money. Including tips to evaluate your current platform to determine if it’s worth the investment, as well as a step-by-step guide to calculating LMS ROI.