cets 2015 pangarkar gaining leadership support handout

Ge#ng the Inside Track: Gaining Leadership Buy-‐in for E/M-‐Learning

15-‐08-‐24

Copyright 2015 CentralKnowledge T: 1 450 689 1675 1

Gaining Leadership Buy-in for E/M Learning

Presenter: Ajay M. Pangarkar, CTDP, CPA, CMA

Based Upon the BookThe Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy

CentralKnowledge Where Learning…Means Business

CentralKnowledge.com Where Learning…Means Business t: 866.4.VXPERT e: [email protected] tw: @ajaypangarkar

Building Business Acumen for Trainers: Skills to Empower the Learning Function (with CD) Published by Wiley Terrence Gargiulo, Ajay M. Pangarkar, Teresa Kirkwood

Background…

The Trainer’s Balanced Scorecard: A Complete Resource for Linking Learning to Organizational Strategy Ajay M. Pangarkar, Teresa Kirkwood Published by Wiley


Apply financial tools to build an e/m-learning case

Building Learning Acceptance

Build a financial case for e/m-learning

Communicate expectations into business results

Evaluating E/M-Learning

Strategy

Learning Objectives:


15-‐08-‐24



Leader’s Language & 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


A Quick Question…

“Training”?

How do your business-leaders

perceive...


A Quick Question…

“Training”?

How do your business-leaders

categorize...

Please share your answers…


15-‐08-‐24



Leader’s Expectations…

Business leaders view training in 3 ways:

1.  Necessary, expected training

2.  Measuring impact of major investments

3.  Investing in major elements of training

“training” is a component e.g. product support

Job training and skills development

E/M-Learning infrastructure e.g. LMS, tablets, software, etc.


We must first recognize how leaders…

Evaluate projects!


Building E-learning Acceptance

Evaluating E-learning Strategy

à Capital investment

à Operational Expenses

à Needs Identification à Learning Retention

Learning Aspects

Infrastructure

Management Needs à Business Objectives à Operational Activities

Level 1, 2

Level 3, 4


15-‐08-‐24



Leadership Decision Tools

§  “Training” 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 revenue/costs changes


Cost-Volume-Profit (CVP)

Revenues

Variable Costs

Contribution Margin

Fixed Costs

Operating Income

Company sales (price x units sold)

Cost to produce units sold (cost x units sold)

Profit to cover fixed costs (determines breakeven point)

Capital investments to produce units

Remaining profits


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 Let’s work through an example…


15-‐08-‐24



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



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?



What is your answer… to management’s question:

Should we spend $60,000 for

the e/m-learning app?

No We Shouldn’t!

What Should We Consider?


15-‐08-‐24



Your leaders want business impact! (Kirkpatrick level 4)!

Yes, but Ajay...How do we do this?


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


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?”


15-‐08-‐24



Building Learning Acceptance

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”

Gaining Support for

E/M-Learning Strategy

Learning Objectives:

Apply financial tools to build a case for e/m-learning §  Measure the appropriate “return” of

learning capital elements

§  Utilize existing financial evaluation tools


TrainingIndustry.com �  The CLO Reality:

What It Takes to Lead & Manage the Learning Function

�  The Business Leaders Bottom Line: Aligning Learning With Organizational Needs

�  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


Ajay M. Pangarkar CTDP, CPA, CMA

t: 866-489-7378 x 1 e: [email protected]

@ajaypangarkar

30% DISCOUNT CODE: WLY15 @Wiley.com


15-‐08-‐24



Final Session Survey and End-‐of-‐Day Poll

1

2 3

Surveys are built into each session descrip=on. THANK YOU FOR GIVING US YOUR FEEDBACK!



4

cets 2015 pangarkar gaining leadership support handout

Presentations & Public Speaking