the new math for justifying online learning webinar slides

© Project Tomorrow 2011

Special Webinar

The New Math for Justifying Online Learning

Leveraging ROI and VOI Analysis for Ed Tech Investments

Julie EvansChief Executive Officer

Project TomorrowSeptember 29, 2011


Today’s discussion:

• Introduce our new report



• Review of report methodology

• Share highlights from report

• Expert Panel

• Discussion: your thoughts and comments


Introducing our expert panel:

Judy BauernschmidtDirector, Student Online Learning

21st Century Virtual AcademyJefferson County Public Schools (CO)

Tracy Clanton-SmithLISD-TV & Online School Coordinator

Lubbock Independent School District (TX)


About Project Tomorrow

(www.tomorrow.org)

leading education nonprofit organization

dedicated to the empowerment of

stakeholder voices in education

programs include the Speak Up National

Research Project and related research


About Speak Up National research project to inform federal, state & local policies, programs and funding for ed tech

Over 2.2 million online surveys submitted since 2003 from K-12 students, parents, teachers, librarians & administrators

National reports produced annually on the data results

Research topics include:

• Online Learning

• Mobile Learning

• Digital Content

Speak Up 2011 online surveys Oct 10 – Dec 23

K-12 Students, Parents & Educators


Let’s Talk ROI & VOI



Which of these are critical for your district?

1. Achieving your district’s core mission

2. Managing through fiscal difficulties

3. Leveraging technology to drive greater

productivity and efficiency



Which of these are critical for your district?

1. Achieving your district’s core mission

2. Managing through fiscal difficulties

3. Leveraging technology to drive greater

productivity and efficiency

4. All of the above



Are you also increasingly being asked these questions?



Are you also increasingly being asked these questions?

What is the return on that investment?

What is the value of that investment?



Announcing a new report from Blackboard and Project Tomorrow:




Let’s Talk ROI & VOIThree goals with this new report:

1. Spark new discussions re: investment decisions 2. Provide real world insights from district leaders

3. Empowering districts with a new methodology and language for justifying ed tech decisions

(online learning projects as a proxy)


Let’s Talk ROI & VOIReport Methodology

Guided by five key questions:

1. What factors are driving online learning projects?

2. What does VOI and ROI mean in an education setting?

3. What is the “new math” for justifying these decisions?

4. What can we learn from some innovative districts?

5. How can education leaders use this information?


Let’s Talk ROI & VOIReport Methodology

Development process:

• Literature review

• Research on ROI/VOI decision-making

• Analysis of Speak Up national data

• Survey of 34 district administrators

• In-depth interviews with 10 district leaders



Report Methodology

Interviewees represented the following districts:

Baltimore City Public Schools (MD)

Fairfax County Public Schools (VA)

Jefferson County Public Schools (CO)


Marion County Public Schools (FL)

Mooresville Graded School District (NC)

Polk County Public Schools (FL)

School District of Clay County (FL)



Increased interest and demand for online learning

Over 1/3 of students in grades 6-12 (who have not taken an online class) would like to take an online class

5X more parents now say that online learning is a good investment for their child’s school

26% of teachers now say they prefer online courses for their professional development

Source: Speak Up 2010 National Findings




Source: Speak Up 2010 National Findings

Audience 2008 2010Administrators 21% 36%Teachers 49% 53%Traditional students 24% 40%Home-schooled students 5% 13%Students in continuation schools 3% 18%At risk students 10% 16%

Administrators: Who is your primary audience for online classes?




Example: Teachers’ Professional Development

Three key motivating factors:

1. Solve training logistical challenges

2. Address state and federal compliance training issues

3. Leverage online learning for greater cost effectiveness



Defining VOI – Value of Investment

Looks at how the investment achieves the core mission

Analysis success dependent upon clear cut objectives

Can evaluate both interim and end outcomes but head-on comparisons are difficult unless

program goals are similar

Traditionally the more comfortable analysis method for education leaders


Defining VOI – Value of Investment

Example: Mooresville Graded School District (NC)

“Digital Conversion” driven by district strategic plan to transform teaching and learning district wide.

Re-purposed budget line items to be cost neutral.

Per Dr. Smith, “LMS is the glue that holds this all together for our district.”



Defining ROI – Return on Investment

Earnings generated per dollar of investment : comparing solution costs to monetary benefits

Monetary benefits as savings and/or new revenue

Provides way to compare investments with an objective, financially focused assessment

Traditionally, has not been a standard practice in K12 education due to inherent challenges




Inherent challenges & opportunities:

• 56% of administrators said they have little or no familiarity with ROI

• Only 18% had to complete an ROI analysis to justify their current online learning project

• 85% said they would use a set of ROI tools to evaluate future investments

• 75% of administrators say they would use these ROI tools for other ed tech decisions



Example: Marion County Public Schools (FL)

Catalyst for online teacher PD was financial.

New legislation required teacher training – contract required teachers to be paid a stipend for afterschool PD. Online PD avoided the stipend pay and saved over $45,000. And provided way to “testdrive” online learning.


Investment Justification

VOI AnalysisValue of Investment

ROI AnalysisReturn on Investment




Introducing . . . . . .

A New Tool for District Leaders:

The Online Learning Justification Ladder



A New Tool for District Leaders:


Step 1: How?

Step 2: Who?

Step 3: What?

Step 4: When?

Step 5: Where?

Step 6: Why?



Step 1: How?

Step 2: Who?

Step 3: What?

Step 4: When?

Step 5: Where?

Step 6: Why?

The questions provide a

structured way to collect

the data you need for

either an ROI or a VOI

analysis. And provide a

format for articulating the

analysis results to your

stakeholders and/or

decision-makers.



Ladder Step 1: How?

How are you approaching the justification of your online learning project? Using an ROI or VOI analysis? Or both?

Is an ROI analysis required to gain approval or commitment?

Or it is more important to articulate the benefits through a VOI analysis?



Ladder Step 2: Who?

Who is your targeted audience for your online learning project?

What are the needs of this audience?

What are the current and future costs of meeting those needs?

Why is online learning the best solution for this particular audience and their needs?



Ladder Step 3: What? What is your specific online learning project that will address the needs of the targeted audience? What online courses or environment are you providing?

What are all of the costs associated with your solution?

What is the value-add of your solution?

How will this solution impact student achievement?



Ladder Step 4: When?

When will your participants access the online learning course or the environment that you are providing?

During the school day, afterschool, during summer recess, in the evening?



Ladder Step 5: Where?

Where will your participants be when they access the online learning course or the environment that you are providing?

At home, in the classroom, in a computer center, at the library, in the faculty room?



Ladder Step 6: Why?

Why is your online learning project a justifiable decision by either ROI or VOI standards?

If ROI, what the cost savings or new revenue derived from the investment?

If VOI, how does this project address our core mission as a district?



Ladder Step 6: Why?

Bottom line:

Why is this project a good investment of our district’s time and/or resources?



ROI Analysis – some factors to consider:

Budget expense line items

• Meeting costs – travel costs• Print materials, textbooks and curriculum guides• Teacher stipends / substitute fees• Redundant software licenses• Communications with parents• Transportation costs



ROI Analysis – some factors to consider:

Sources for new revenue

• Fees for PD courses – internal and external staff• Fees for summer school courses• Selling district courses• Virtual school management and/or consulting



VOI Analysis – some factors to consider:

Potential value propositions

• Course expansion and credit recovery• Student engagement, achievement, productivity• Teacher productivity• Increased participation in PD• Parental/community interactions• Curriculum alignment and consistency• Increased staff morale and motivation• Greener approach• Competitive edge



Report includes:

• Three case studies• Jefferson County PS – Teacher PD Program• Clay County Schools – Home Connections Program• Lubbock ISD – Online Summer School

• Ladder worksheet


Introducing our expert panel:

Judy BauernschmidtDirector, Student Online Learning

21st Century Virtual AcademyJefferson County Public Schools (CO)

Tracy Clanton-SmithLISD-TV & Online School Coordinator



Recommendations on leveraging ROI and VOI

1. Know what you need to gain approval

2. Create a comprehensive plan

3. Don’t overreach but target a high profile need

4. There is no such thing as a free lunch

5. Don’t be afraid of ROI

6. Engage your stakeholders in the justification process

7. As your project matures, the label “project” is no longer appropriate

8. You can do this!


Speak Up 2011New online surveys for students,

parents & educators open for input:

October 10 - December 23

Data back to schools & districts:

February 2012

Learn more atwww.tomorrow.org

Enable, engage, empower your stakeholder voices!


Let’s Talk ROI & VOIYour thoughts and comments!

Julie EvansChief Executive Officer

Project Tomorrow

[email protected]

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