A Step-By-Step Guide To Create A Successful Employee Development LMS Business Case

LMS Business Case For Employee Development
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Summary: You know that your organization needs a new LMS to improve ROI and employee engagement. However, convincing stakeholders usually requires a solid business case to bring them on board.

8 Steps To LMS Business Case Development

A new LMS will benefit your organization and improve the health of your bottom line. But higher-ups still need proof that it’s a viable investment. This requires a sound business case that shows them how the LMS will shore up gaps and outlines all the risks involved. As well as how you plan to deal with the implementation obstacles involved. They want to hedge all their bets and it’s your job to convince them that the employment development LMS is worthy of precious resources. If not, they might be content with the current system or ILT sessions that don’t require a major L&D overhaul. So, here’s a step-by-step guide to creating a successful LMS business case for your next employee training LMS.

1. Conduct A Training Needs Analysis To Identify Current Pain Points

You need to prepare in advance for the LMS pitch meeting. Firstly, carry out a training needs analysis to see where the current system is lacking and identify areas for improvement. Specifically, how the new platform will address the issues and improve ROI. For this, you need LMS reports, surveys, assessment results, and other essential data to prove that there a replacement is in order.

2. Highlight The Benefits A New System Will Bring

Once you’ve determined what’s missing from your existing strategy and/or system, it’s time to bring on the benefits. How will the new employee training LMS help your organization achieve its objectives? Be specific about the system is going to improve profits, increase employee retention, and achieve performance management goals. Make sure the benefits are measurable so that stakeholders can track the effectiveness of the new platform.

3. Plan Ahead For Stakeholder Sticking Points

There is probably going to be some resistance. So, count on it and plan ahead for their reservations. In fact, you should create a list of all possible arguments they may have against a new employee development LMS and your counterpoints. For example, they don’t feel there’s a need to invest in another system that’s mobile-friendly. They’d prefer to just purchase plug-ins or other upgrades to improve functionality.

4. Calculate All Costs Involved

When all is said and done, everyone wants to know what it will cost and if it warrants the investment. So, you need to calculate all the fees involved, why they’re included in the package, and how they translate into practical perks. Don’t forget to include the hidden costs, such as the time it takes to learn the new tool and maintenance. You should also compare these costs against the current LMS budget to highlight savings areas. For instance, you’ll pay less per active user and the package already includes support services.

5. Develop A Realistic LMS Implementation Timeline

Time is the second most important stakeholder consideration. They need to know how long it will take to implement the new system from beginning to end. How much time will you set aside for vendor vetting and choosing the new tool? How long does it take to set it up and ensure that everyone is familiar with the new features? What about ongoing maintenance and back-ups? It may be wise to include a visual timeline that they can use to follow along as you map out every step of the process.

6. Compile An LMS Launch Team

It’s challenging to go it alone. Especially when there are so many tasks involved in LMS selection, implementation, and maintenance. This is why it’s crucial to compile a team and clearly outline their roles in your LMS business case. Stakeholders will be more likely to sign on if they know who’s taking on which tasks and that understaffing isn’t an issue.

7. Create A List Of Top LMS Choices

Prepare a list of the LMS platforms you have your eye on and a brief overview of their features, pricing models, and deployment types. As well as why you’ve chosen each system and how it will mesh with your overall strategy. Conduct free trials and demos beforehand so that you have an insider’s POV. For instance, you can weigh the pros and cons of the tool based on firsthand experience. Of course, clarifying how you’ll mitigate the downsides to improve the return on your investment.

8. Summarize The Cost, Time, And HR Resource Savings In A Neat Proposal

Your LMS business case should include a complete summary of how much you need to spend to achieve your objectives. As well as a detailed timeline and how much you’ll save by investing in a new platform. Tie everything up in a neat proposal package so that executives and stakeholders can mull over the details. Without having to conduct research on their own. Your official proposal should also include contract terms they need to know about and case studies or examples. So that they can see how the LMS lived up to expectations in the real world and that it’s been tried and tested.

LMS Business Case Best Practices

A successful employee development LMS business case does involve multiple facets. It can be time-consuming if you’re working with vague data or objectives. This is why it’s crucial to set a solid foundation by identifying pain points, budgeting parameters, and stakeholder reservations. Play the devil’s advocate by identifying the risks and then figuring out how to handle them cost-effectively. Walk into the meeting with a detailed outline of how much it costs, why you need it, and when you plan to launch.

Your LMS business case should outline the top contenders and their price points. Get a free LMS quote to receive a shortlist of top choices so that you can simplify the vetting process. It takes just a few minutes to provide some basic project info and save yourself the time and trouble of perusing the entire database.

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