using roi to justify your online learning initiative

© Project Tomorrow 2011

Using ROI to Justify Your Online Learning Initiative

Twitter: #vss309x7

Julie Evans, Project Tomorrow CEONovember 11, 2011


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


Calling all students, parents & educators to participate

in Speak Up 2011!

New online surveys for students,

parents & educators open for input:

October 10 - December 23

Data back to schools & districts –

use for grants & planning

February 2012

National data release –

inform national/state policies & funding:

March 2012

Learn more at www.tomorrow.org

Enable, engage, empower your

school’s stakeholder voices!


A special report:

The New Math for

Justifying Online LearningLeveraging ROI and VOI Analysis

for Ed Tech Investments

Released in July 2011 in

collaboration with Blackboard, Inc.


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?



Three 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)



Today’s discussion:

• Review of report methodology

• Share highlights from report

• Introduce you to a new tool

• Your thoughts and comments



Report 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?



Report 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


Let’s Talk ROI & VOIReport Methodology

Interviewees represented the following districts:

Baltimore City Public Schools (MD)

Fairfax County Public Schools (VA)

Jefferson County Public Schools (CO)

Lubbock Independent School District (TX)

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 2010

Administrators 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 in the survey has 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 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?

Jefferson County Public Schools Virtual Academy



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 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?

Fairfax County Public SchoolsLubbock Independent School District



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 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 it impact student achievement?

School District of Clay County



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 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?

Jefferson County Public SchoolsLubbock County Independent School District



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 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?

Mooresville Graded School DistrictFairfax County Public Schools



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


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!



Three 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)


• National Speak Up Findings and reports

• Additional data analysis from Speak Up 2010

• Presentations, podcasts and webinars

• Evaluation services

• Reports and white papers

• Participate in Speak Up 2011!

More Speak Up? www.tomorrow.org


Calling all students, parents & educators to participate

in Speak Up 2011!

New online surveys for students,

parents & educators open for input:

October 10 - December 23

Data back to schools & districts –

use for grants & planning

February 2012

National data release –

inform national/state policies & funding:

March 2012

Learn more at www.tomorrow.org

Enable, engage, empower your

school’s stakeholder voices!


New Speak Up 2011 Questions: Administrators

� How does your district's overall budget for education technology initiatives and projects compare this year with your budget in the 2008/2009 school year?

� If your ed tech budget is less than desirable this year, how are you dealing with that situation?

� Which if any of these technology solutions are you consideringfor your district to at least partially help your budget situation?

� Increasingly administrators are being asked to justify their technology investments. Which of these outcomes have proven to be good justifications for technology investments in your district?



Your thoughts and comments!

Julie EvansChief Executive Officer

Project Tomorrow

[email protected]

Twitter: JulieEvans_PT

using roi to justify your online learning initiative

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