Steps to Build a Successful LMS Business Case for Employee Development

Your organization will benefit from a new Employee Development LMS, and your ROI will improve. But, on the other hand, higher-ups need proof that it’s a good investment. This necessitates a solid business case that demonstrates how the LMS will close gaps and identify all risks and how you intend to overcome the implementation challenges. They want to cover all of their bases, and it’s up to you to persuade them that the employee development LMS is worth their time and money. If not, they may be satisfied with the existing system or ILT sessions that do not necessitate a significant L&D overhaul. So, here’s a step-by-step guide to putting together a solid LMS business case for your next employee training system.

1. To identify current pain points, conduct a training needs analysis

   For the LMS pitch meeting, you must prepare ahead of time. To determine where improvements can be made, conduct a training needs analysis. In particular, the new platform will improve ROI. You’ll need LMS reports, surveys, assessment results, and other evidence to show that a replacement is necessary.

2. Emphasize the advantages of a new system

   It’s time to bring on the benefits once you’ve determined what’s missing from your current strategy and system. How will the new employee training LMS assist your company in achieving its goals? Be specific about how the system will boost profits, employee retention, and performance management objectives. Make sure the benefits are quantifiable so that stakeholders can track the new platform’s effectiveness.

3. Prepare ahead of time for stakeholder stumbling blocks

   There will almost certainly be some opposition. So, expect it and make reservations ahead of time. It would help if you listed all possible objections to a new employee development LMS and your counter-arguments. For example, they don’t see the point in investing in a new mobile-friendly system. To improve functionality, they’d instead buy plug-ins or other upgrades.

4. Compute all involved costs

   Everyone wishes to know how much it will cost and if it will be worth it. As a result, you’ll need to figure out all of the fees, why they’re included in the package, and how they translate into valuable benefits. Remember to factor in the hidden costs, such as the time it takes to learn a new tool and the cost of maintenance. It would help to compare these costs to the current LMS budget to identify areas where you can save money. For example, you’ll pay less per active user, and the package already includes support.

5. Create a timeline for implementing the LMS that is realistic

   The second most crucial stakeholder consideration is the passage of time. They require an estimate of how long it will take to implement the new system from start to finish. How much time will you devote to vetting vendors and selecting a new tool? It takes how long to set it up and ensure everyone understands the new features? What about backups and ongoing maintenance? Include a visual timeline so they can follow along as you plan out each step.

6. Assemble a Launch Team for the LMS

   Going alone isn’t easy, especially with so many tasks involved in selecting, implementing, and maintaining an LMS. Therefore, it is critical to assemble a team and clearly define their roles in your LMS business case. If stakeholders know who will be responsible for which tasks, and there will be no understaffing, they are more likely to sign on.

7. Make a list of the best LMS options

   Please list the employee development LMS platforms you’re interested in and summarize their features, pricing models, and deployment options. You should also explain why you chose each system and how it fits your overall strategy. Next, conduct free trials and demos to gain an insider’s perspective. For example, based on firsthand experience, you can weigh the tool’s benefits and drawbacks. Finally, you’ll need to figure out how you’ll deal with the liabilities to get a better return on your investment.

8. Create a neat proposal summarizing the cost, time, and HR resource savings

   Your LMS business case should include a detailed breakdown of your budget. You’ll also get a timeline and a cost estimate for switching platforms. Then package it up for executives and stakeholders to review. They won’t have to do any homework. It’s better to include contract terms and case studies in your formal proposal. So, they can see how well the employee development LMS worked in the real world.

Best Practices for LMS Business Cases

There are several aspects to a successful employee development LMS business case:

1. Identifying pain points, budgeting parameters, and stakeholder reservations is critical.
2. So, start by identifying the risks and determining the most cost-effective way to address them.
3. Take a detailed outline of how much it costs, why you need it, and when you plan to launch to the meeting.
4. Your LMS business case should outline the top contenders and their LMS pricing factors.
5. Request a free employee development LMS quote to receive a shortlist of top candidates, making the vetting process easier.

Reach out to us

Contact us today if you are looking for an LMS that would streamline, standardize, and cost-effectively upskill your workforce to the next level. We are happy to give a free DEMO that demonstrates:

• How Paradiso LMS is different from the rest
• The benefits of LMS for your organization
• Why you should implement an LMS right away