Chapter 3

Building the Business Case
for Learning

What’s in this chapter:

• How to create a business-focused value proposition statement for your learning function.
• How to formulate an annual learning plan for your organization.
• How to develop a powerful business case that will enable you to get the funding for your learning project.

Business leaders must make decisions on a host of issues, such as which projects to fund, which suppliers to use, and which products to bring to market. Business cases are commonly used decision-making tools used to help leaders assess the viability of a proposed investment or project. A business case provides the justification for an investment or project. Ultimately, it is “building the case” for management’s commitment and approval.

As a learning leader, you have many opportunities to build and reinforce the business case for investing and supporting learning. To ensure alignment between learning and your stakeholders, they must see why and how learning contributes to their overall business success. That is the focus of this chapter—step 2 of the Strategic Learning Alignment Model: Building the Business Case for Learning. You will be able to leverage the work from step 1, Knowing Your Business, to help you build a strong business case for the learning function and your learning solutions.

This chapter focuses on three key activities to drive understanding of why the learning function is critical to creating value for the business:

• Creating a clear and specific value proposition. This brief but well-crafted message explains why your learning function exists within your company. Your value proposition should directly align with and drive the business strategy.
• Formulating your annual learning plan through business leadership engagement and sponsorship.
• Developing value-added business cases for specific project investments.

The systematic use of all three of these activities powers the “business case” for learning and results in strong alignment between learning and your business.

Using Value Proposition Statements

Business leaders use value proposition statements to communicate how the company’s products or services add value to a targeted set of customers. These brief, definitive statements should capture both the minds and hearts of customers in answering the customer’s question “Why should I buy from you?” A value proposition provides the basis for branding, products or services, and marketing communications.

A value proposition is different from a company’s vision or mission. The value proposition is focused on motivating a customer to choose a specific company over its competitors. For example, here is the UPS value proposition statement found on the company’s website:

       UPS (United Parcel Services—the world’s largest package delivery company and a leading provider of logistics services delivery). Our integrated global ground and air network is the most extensive in the industry. It is the only network that handles all levels of service (express, ground, domestic, international, commercial, residential) through one integrated pickup and delivery service system. Our broad portfolio of services enables customers to choose the delivery option that is most appropriate for their requirements.

This UPS value proposition is customer-centric, reflecting a wide range of products or services that meet specific customer needs in a way that differentiates the company from its competitors.

For your learning function, your business leaders’ funding and support equates to their “buying” your learning solutions. If you surveyed your learning team and stakeholders today, would your value proposition roll off their tongues? Could they readily answer the question “What value does the learning function provide the business?” When learning is tightly aligned with the business’s priorities, both the learning team and stakeholders can readily articulate the learning function’s value proposition.

The value proposition is the framework from which your learning function should consistently operate. As with a business value proposition statement, it provides the basis for your branding, solutions, and communication. It reflects your understanding of the business and its strategy. It also provides a clear purpose for the learning team, guiding their communications and actions.

Creating Your Learning Value Proposition Statement

Even though a value proposition statement is only a few sentences long, it does require time and thought to create. The framework given in figure 3-1 can serve as a guide for creating your value proposition statement, which should contain these five components:

• business objective
• learning solutions
• value
• proof
• differentiation.

As tempting as it is to begin with your learning solutions—of which you are knowledgeable and proud—the starting point is to examine business strategy and stakeholder needs. Follow these steps:

• On a blank piece of paper, list the strategic business issues facing your stakeholders.
• List the learning solutions you offer to help your business leaders address these issues. Your solution should tie directly to solving the business issue.
• List how the learning solution you provide adds value to the business leaders. Think beyond learning “product” and view your total learning solution. For example, you may have solid learning content, but you may also add value in your use of action learning to address real business issues and your use of leaders as teachers (see chapter 4).

Anyone can promise to deliver value. However, what proof points support your claim to deliver value and are also important to your stakeholders? Cost, quality, and time factors are typically important to business leaders and are potential proof points for each of these factors:

• Cost—do you leverage global learning suppliers to drive the affordable, local delivery of learning?
• Quality—do you engage leaders as teachers to ensure that learning is business relevant?
• Time—does your learning function have the track record of producing rapid, just-in-time learning solutions to accelerate competitive capabilities?

Your comparative knowledge of other learning options and solutions available to your business leaders will help you determine why you are the preferred learning supplier. For example, business leaders have choices to create leadership education within their business units or use externals sources. Your differentiation could be your ability to obtain economies of scale by providing a global solution (cost) and company-wide consistency (quality).

Take your completed list and discuss it with a representative sample of your key business stakeholders, who are your best resource to find out what value you bring. Some of us shy away from directly asking this question of our stakeholders. If your list aligns with your stakeholders’ view of learning, then you have important validation. But if your list is not aligned with their view, you have a timely opportunity to refine your value proposition statement. The process of discussing your value proposition with your stakeholders actually engages them and drives alignment.

Finally, apply the “Business leader—‘So what?’ test” to your value proposition to ensure that you are communicating tangible, business-centric value. For example, “Our learning group reaches more than 20,000 participants each year.” So what? Why is this important to your business stakeholders? This may lead you to alter your statement to read “We use high quality global instructors to reach more than 20,000 participants each year.” This provides more of a business-centric view of value. However, again ask “So what?” What is the distinct value for the business leader? Your next iteration might read “We bring locally delivered, consistent, quality learning to your employees in every country where you operate your business.” This last statement conveys minimal travel expenses, accessibility to learning across the globe, and the assurance that there is a consistent level of quality regardless of the geographic offering.

Figure 3-2 depicts a strong value proposition for a learning function. This value proposition statement is a powerful tool for creating business leader alignment, as well as learning team alignment. It provides the foundation from which you operate your learning function.

Formulating Your Annual Learning Plan

Another important aspect of building the case for learning is the formulation of your Annual Learning Plan. The process of creating the ALP presents an opportunity to engage stakeholders and align to the company’s annual business planning processes. A simple fact of life is that rarely are there enough resources to provide all the strategic learning that is requested across your company. Given this reality, it is critical to engage your business leaders in learning governance to validate your learning priorities (see more on this in chapter 4), approve funding, and sponsor your ALP. This ensures the alignment of learning with the business’s goals and clarity on your annual deliverables.

Figure 3-3 illustrates the engagement of multitude sources of strategic input, the key learning activities to create the ALP, and the ALP’s process alignment with the annual business-planning calendar. These sources of input include

• strategic business plans
• annual talent and organizational capability review
• performance management system
• learning college advisory councils
• enterprise learning leader councils
• external best practice learning benchmarking
• functional learning plans for applicable business units.

Using multiple sources of strategic input engages your key stakeholders in the planning process. In addition to your reviewing the business plans and capability assessments, the dialogue with your stakeholders on their learning needs is invaluable. You have an opportunity to share your knowledge of their business and gain a deeper understanding of the learning implications of their strategy. Compiling and communicating an analysis of strategic learning needs builds your transparency with the business, fostering increased alignment with its goals. Thus, your ALP needs to be derived from an open analysis of data and to be openly approved by a cross-section of senior executives. Depending on the size and structure of your organization, business unit and functional-level business plans can be compiled and then reflected in the company’s overall ALP.

Typically, your business unit human resource colleagues play a major role in helping you understand the business strategy and learning needs at their business unit level. In addition to learning needs input, key human resource leaders should also have a role in the final approval of your ALP. When followed by broad communication of your ALP, the inclusiveness and openness of your process minimizes questioning about why and how the learning function selected certain learning priorities.

Keep in mind that your ALP should leverage the processes, tools, and language of your business. When you approach your plan from this business-centric view, you increase your credibility and alignment with the business leaders. Your ALP needs to include these key components:

• Common strategic learning themes, which describe the learning competency needed, such as strategic marketing skills.
• A skills gap description, which provides detail on the specific competency gap, such as identifying unmet customers needs.
• Targeted audience penetration goals, which identify the roles and numbers of people you plan to reach with your learning solution. For example, a strategic marketing learning solution audience is product manager leadership. The total number of product manager leaders is 100. In the first year, you expect to reach 75 participants with your strategic marketing learning solution.
• Prioritized learning themes, which represent the rank order of your strategic learning themes. For example, your first priority is strategic marketing, and your second priority is channel development.
• Existing and new learning solutions to address the skills gap, which identify learning solutions that could address the skills gap—for example, a new program, Workshop on Strategic Marketing for Innovation, and an existing program, Strategic Competitive Analysis.
• The organizational capacity to consume learning solutions, which summarize the potential time impact of learning solutions on different target audiences. For example, sales managers will average three and a half days of formal learning each year.
• A choice of investment options, which is a menu of incremental investment levels and corresponding learning solutions. For example, choice A—with a $200,000 budget—delivers nine programs for senior-level manager learning; choice B—with a $250,000 budget—delivers nine programs for senior-level managers plus five coaching workshops; and choice C—with a $300,000 budget—delivers nine programs for senior-level managers plus five coaching workshops, as well as the refreshment of existing marketing learning programs.
• An impact measurement plan, which provides a schedule, target learning programs, and the evaluation methods you will use. For example, in the months June–July 2012, strategic marketing programs, evaluated with participant and management surveys and interviews.

Figure 3-4 is an excerpt from an annual learning plan created by a corporate university. This matrix is the output of learning needs identification and analysis. It visually shows the common strategic learning priorities for the four sectors of the overall business. A brief description of the skills gap follows. The target audience is identified, along with learning solution penetration goals for the coming year. For example, approximately 100 product managers across the globe constitute the target audience for a strategic marketing learning solution. However, the ALP indicates that 75 product managers will actually receive the learning solution in the upcoming year.

In this case, their managers must carefully prioritize the selection of product managers to participate in the learning workshop. The penetration goals are a balance of the amount of learning resources, the business organization’s capacity to consume the learning, and the criticality of the skills gap. The final column of figure 3-4 indicates the corresponding learning solutions that are recommended. Note that this matrix does not contain funding implications.

Some practitioners (including me) prefer to use a matrix similar to the one shown in figure 3-5 as a basis for a strategic learning need prioritization discussion. First, determine if the strategic learning needs are aligned with the priorities of business leaders. Then discuss the funding required. Of course, there are also a number of other effective ways to construct an ALP. It could include an executive summary and a matrix that does include key investment data—the percentage of total investment, volume, and per person cost ranges. The format you choose should align with the metrics valued within your organization. For instance, the ALP for a company that places a strong emphasis on volume metrics could include the number of deliveries and participants, along with a matrix giving year-over-year increases.

Figure 3-6 represents an ALP executive summary. The company for which this ALP was created focuses heavily on running relatively flat budgets and demonstrating year-over-year productivity gains. In other words, it seeks to continue to work smarter and deliver more with the same amount of investment. Its business leaders are held accountable for productivity metrics. It is logical that the learning function should operate in the same way to be truly aligned with the business’s goals.

Another key component of your ALP is an analysis of the organization’s capacity to consume the learning solutions you propose (see figure 3-7). I have seen talented learning professionals create robust learning plans that omit this step. While these professionals are presenting their ALP, the business leaders then ask this fundamental question: “What is the impact of your plan on employee time away from the job?”

The capacity to consume data shows your understanding of the business and your effort to keep aligned with the “learning tolerance threshold” of your organization. Here the metric of a “learning day” is helpful. The average learning day’s calculation per key role includes formal learning activities and converts this into a learning day. For example, a learning day could be made up of three hours of online learning and four hours of a learning lab. Of course, informal learning time may also be factored in.

The purpose of the capacity-to-consume analysis is to provide directional data on the time impact of your learning plan. Emphasize the approximate and directional nature of the data. Seek a consensus among the business leaders on the maximum number of learning days they are willing to allot. This will provide you with a guideline as you finalize and execute your ALP.

Figure 3-7 illustrates a “menu choice” approach to obtaining funding for your ALP that corresponds to the ALP executive summary in figure 3-6. Remember, multiple departments are competing for funding from the company’s annual budget. As business leaders are forced to make tough funding choices, it is important to align their choice with the corresponding learning solutions delivered. Many times, a smaller funding amount is approved, but business leaders do not fully understand the impact of this decrease. You leave the meeting room with two different sets of expectations for annual deliverables. It is important that your business leaders are completely educated consumers who fully understand the impact of their funding decisions. You need to provide them with funding level choices that have clear deliverables associated with each funding-level. Use this as an opportunity to align with your business leaders’ goals and share accountability for the ALP.

Figure 3-8 shows different levels of investment and what each level “buys” in learning solution deliverables. This menu choice provides transparent data from which the business leaders can select their preferred level of investment. It also reinforces the alignment of expectations between the learning function and business leaders’ priorities. Opportunities and risks are included for each level of investment.

The final component of your ALP is a high-level plan of how you intend to measure the impact of your learning solutions. Figure 3-9 shows an impact measurement plan with targeted learning solutions, evaluation methodology, and timeframes. In your ALP process, you are requesting funds from a limited pool, literally at the expense of another company department. You absolutely should include your plan to capture impact metrics in the overall ALP.

Although the ALP content is now complete, your process is not. Communicating this plan to your stakeholders is the critical next step. As the year progresses, new strategic learning needs may arise. If so, you need a systematic process to evaluate them in the context of your ALP and to determine what resources need to be shifted or increased to include them. As these requests arise, it is wise to have the senior-level sponsor work with you to create a business case to present to your learning governance for approval. The rigor to this process in creating a business case and presenting it to executive-level leaders for approval tends to weed out less strategically important requests. The senior-level sponsor should present the learning request, with the staff involved in the learning function playing a support role. Create a system for monthly or quarterly reviews of new strategic learning requests by your learning governance leaders. This will ensure that you maintain an ongoing transparency in the learning request process. In addition, decisions to shift or increase resources need to be shared between business leaders and learning professionals to prevent misalignment between your deliverables and corresponding resources.

As you can see, there are two key factors to your ALP—one is process and the other is content. Both factors must be business-centric to ensure that you are aligned with the strategic needs of your organization and are following the business-planning cadence. This business-centric approach enables you to build a business case for learning. In the process, it also drives your credibility and alignment with business leaders’ goals.

Developing a Business Case to Fund a Learning Project

Part of developing the business case for learning can literally include building a case to request funding for a learning project. A business case provides potential investors with information on why investing in your project is a good decision. Investors look to see a return on their investment. The concept of return on investment is no different for learning leaders requesting funding. Most business cases provide decision makers with a similar format of information, helping them compare multiple case requests. The research and analysis incorporated into a business case can be referred to as “due diligence.”

Typically, business cases are written for nonroutine and more costly investments—for instance, the purchase of million-dollar production equipment or an investment in a company software platform. Your company will have policies regarding the requirement for a business case. Regardless of the requirement, the process of completing a business case provides value for your learning team. It reinforces a business-centric approach and requires business rigor as learning professionals perform their due diligence.

The most common components of a business case include

• a brief description of the project
• a description of the business issue(s) resolved by the investment
• a data on benefits of the project
• a description of alternatives
• the investment requested
• an estimation of project returns/benefits.

Figure 3-10 provides a sample excerpt from a business case for a capital expenditure to create a leadership learning lab facility. The facility will decrease costs to conference centers and literally pay for itself in six months.

This business case example opens with a brief description of the project, followed by an explanation of how the business problem will be solved through meeting this request. Additional data on the benefits of the leadership learning lab appears next. The next component is a description of alternatives. This business case closes with investment requirements and payback data. Detailed data on costs and cost savings is included in the addendums to the business case.

Figure 3-10. A Sample Excerpt from a Business Case for a Capital Expenditure to Create a Leadership Learning Laboratory

Year One Cost Savings

			Per Day Expenses including taxes and service chg
	Location	Per Person	Sleeping Room Cost**	Catering*	Total Cost Per Day	# of Days	Sub-total	Extra Dinner Mìsc. Chgs.	A/Vper session	TOTAL
Top Gun Academy	Lodge	35	6.583.00	3,255.00	9,838.00	9	88,542.00	2,000.00	2,500.00	93,042.00
Top Gun Academy	Corp U	35	2,304.00	1,750.00	4,054.00	9	36,486.00	2,000.00	N/C	38,486.00
*Catering package includes breakfast, breaks, lunch, and 1 dinner

Year Two Cost Savings

Senior Leader Programs	# Programs	Savings Per Day	Days Per Program	Total Savings Per Program	Total Savings Per Offering
Top Gun Academy	3	$6,000	9	$54,000	$162,000
Leader Level - People Mgmt	4	$6,000	4	$21,000	$84,000
Advanced Leader - People Mgmt	3	$6,000	4	$24,000	$72,000
Advanced Leader - Business Management	3	$6,000	4	$24,000	$72,000
Strategic Planning	3	$6,000	2	$12 ,000	$36,000
Strategic Change	2	$6,000	3	$18 ,000	$36,000
Total Savings Per Year					$462,000

Another example of a business case appears in figure 3-11. This example reflects a purchase order request for the design and pilot delivery of a new sales learning program. In the right margin, boxed descriptors are added to help you identify the business-centric elements. As you scan through figure 3-11, note the business sponsorship and “pull” for this program. Benefits are stated in business terms. Business leaders are concerned with the shelf life, or life cycle, of their products. They focus on the products’ growth, maturity, and decline. Similarly, the life cycle of this learning investment is of interest to business leaders. In this case example, the learning program is viable for three years without major revisions.

Additional quantitative data appears in the next sections of this business case, including target audience penetration targets, itemized costs, and unit costs. These numbers are familiar data points for business leaders. External alternative sales learning programs are referenced for comparison purposes. Finally, the vendor selection process highlights the engagement of the company’s procurement expertise, and business leaders select the vendor.

The business language and metrics used in this business case mirror the rigor that business leaders use when they request funds. By replicating a rigorous business approach, you can ensure that your business case will be received with greater credibility and the likelihood of approval.

Presenting Your Business Case for Approval

After building your initial case, you will likely need to present it to business leaders to gain approval. It is wise to have a financial colleague, as well as the project sponsor, review your business case before you present it to business leaders. You do not want a misused or weak financial metric to derail your presentation. Senior business leaders are quite fluent in financial metrics—the language of business. Therefore, it is highly probable you be will challenged on a misused or weak financial metric. The time for correction or omission of the data is during your review with your finance colleague and project sponsor.

Prepare for your presentation by thinking about the questions you are likely to hear, for example:

Figure 3-11. An Example of a Business Case for a Purchase Order Request for a New Sales Learning Program

Requisition #: 12345

Creation Date: February 18, 2008

Payee: Company X

Amount $$$: $94,500

Business Sponsorship

Requested by: Business Sponsor and Chief Learning Office

Originated by: Sr. Manager, Sales & Marketing Education

Upfront Alignment and "Pull" from the Business

Description of Requisition: Contract for Development and Pilot of Sales College "Solution Sales" Program

This requisition is for the development and pilot of the “Solution Sales” program. This is the second program in the suite of 3 “Solution Sales” programs to be developed by Corporate Univesityin support of the enterprise-wide sales training strategy approved by the Sales & Marketing College Advisory Council. Company X will provide customized curriculum development and delivery of this program in 2008.

Business-centric Benefits

 

 

The enterprise benefits of this program are (1) Consistent solution sales methodology and documented sales processes across the enterprise , (2) Increased revenue from non-product services and recurring revenue opportunities, (3) Increased volume and gross profit of goods sold by leveraging financial acumen skills to document solutions impact on customers P&L, (4) Increased customer satisfaction and loyalty as a result of strategic business partner solution sales approach, and (5) Enabler in attraction/retention of talent and increased ability to transition talent across sectors and business units.

 

Program Description:

 

This is a blended, customized program made up of 3 distinct learning events: (1) Pre-work will consist of one e-learning module on the basics of Financial Acumen (including assessment) and one pre-work activity based on an actual customer account. A manager's guide book and coaching tips to promote manager/participant goal setting and program expectations will also be included. (2) A classroom module (3 days) of skill-based practice, application, role play and feedback based on learning specifications developed by the IR global cross-sector design team and aligned with IR sales competencies. (3) Post-work, which includes interactive salesperson/manager 30, 60, 90 day goal follow-up program to drive adoption and implementation of specific goals set at the conclusion of the 3 day program.

 

Participants will leave with tools and templates that can be applied to daily work assignments, including pre-call planning, customer presentations, and customer proposals. Shelf-life for this program is 3 years.

 

The objective of this program is for sales professionals to maximize their sales performance metrics by

• Partnering with customers to uncover and understand customer challenges, objectives and initiatives
• Targeting customer solutions that locus on "value" as articulated by the customer, versus focusing on a specific product
• Developing customer solutions based on the "Value Framework" process focusing on business outcomes, required capabilities, measurement, value differentiation and proof points
• Using business acumen to quantify and dollarize solution savings by identifying how the IR solution impacts the customers P&L
• Leveraging value via key customer relationships and demonstrated value of Ingersoll Rand

Target Audience:

The target audience for this program is approximately X number of outside territory sales professional’s enterprise wide and X number of frontline sales managers. Managers will determine nominations for this program by (1) prioritizing sales professionals that have completed Sales Effectiveness & Productivity, (2) top performing sales professionals that were exempt from Sales Effectiveness based on performance and, (3) all frontline sales managers. We will deliver 14 programs in 2008 and 20 deliveries per year in 2009, 2010, and 2011 to achieve penetration rates above 90% for sales professionals and frontline sales managers.

Audience Penetration Targets

Development and Delivery Schedule and Financial Impact:

The “Solution Sales” program will be designed and developed according to the following schedule.

 

One-time development fees and delivery of pilot:

 

Itemized Costs

 

Unit Cost

Milestone	Conclusion Date	Fees
Custom program development	6/15/08	$
E-learning module development	6/15/08	$
Pilot	7/7/08	$
After action review	7/14/08	Included
Final curriculum, facilitator/participant guides, pre/post work materials	7/21 /08	Included
Total amount		$94,500

External Benchmark Compairisons

The cost per participant day for the “Solution Sales” program is $153 including meals and materials. Similar sales programs offered through franchised sales training companies (listed here) average $385 per participant day. University sponsored corporate education courses (listed here) average $1,400 per participant day.

 

A design team consisting of 18 company business leaders, representing all 3 sectors and the regions of Asia, Americas, and Europe was assembled per the Corporate University Phase Gate process. The Solution Sales Executive Program Sponsor and all design team members approved the learning specifications and objectives outlined for this program.

Procurement Expertise Is Leveraged

 

Vendor Selection

 

Corporate University followed its standard Phase Gate Process and worked with Strategic Sourcing. A full RFP was sent to 10 vendors in September 2007. An updated RFI - RFP was sent in January 2008 to the 3 vendors that best fit the company requirements of sales expertise and qualifications, global experience and delivery capabilities, and service delivery approach and financial impact.

Business Leaders Select Vendor

 

The top 2 vendors were provided the opportunity to present their formal proposals to the Sales College Design Team. 80th vendor presentations were scored using a standard scoring matrix and prescribed scoring anchors.

 

By unanimous decision, the business leader design team and Corporate University chose to partner with Company X due to its demonstrated abilities and service delivery approach. Company X will work with the Sales College Design Team components in the development of this program ensuring alignment of existing sales methodologies, tools and processes. Company X has completed similar work with other Fortune 500 companies. Company X also ranked as the low cost provider (15% less) based on RFP and proposal results. Payment terms are Net 60 days.

Negotiated Low Cost Provider for Targeted Level of Quality

 

Contact Information Company X;

 

Summary and Wrap Up

The “Solution Sales” program is part of the Enterprise Sales Training Strategy developed by the Corporate University Sales College Advisory Council. This program is aligned with the company vision and will be a strategic enabler in Driving Dramatic Growth, Operational Excellence, and Dual Citizenship This solution sales methodology and documented sales process will be reinforced by sales managers in pre and post work activities. Company X has an existing relationship with the Corporate University through their mutual partnership with Company Y. Company X will develop and deliver a world-class curriculum that is customized to our company's specific business requirements in direct support color company goals and aspirations
Approved by:
Date

• What level of usage do you expect from this new leadership learning lab?
• How do other companies address this issue?
• What is the payback period for this investment?
• What kind of discount did you negotiate with the vendor that you’ve recommended?
• What is the shelf life for this program?
• How long will it take you to put our entire sales force through this program?

“Presell” or share your presentation in advance with a few key members of the group to which you will be presenting. Getting their potential objections and questions before presenting to the larger group will help you prepare for and manage these potential trouble spots.

Senior business leaders want communication that is concise, clear, and ultimately answers the question “How will this generate or save me money?” Within the senior business leader group, there are differences in roles and personalities. Take the time before your presentation to complete a stakeholder analysis.

For example, a stakeholder analysis will likely indicate that the CEO and chief financial officer will want information emphasizing different focuses. Thus your CEO may be focused on increasing sales in a new global market. And although your CFO will also be aligned with this marketing focus, he or she will probably be more focused on decreasing the price discounts used by salespeople to generate more profitability in company sales. Therefore, you should frame your sales learning program business case so it’s relevant to the focal points of both your CEO and CFO.

Here are some tips to follow when delivering your presentation:

• Open your presentation with a clear desired outcome. For example, “I am here to obtain funding for a learning sales program that will generate increased profitable sales for the company.”
• Provide a brief description of the business issue you are addressing in your presentation.
• Highlight the benefits and return on investment for your recommendation. It is also useful to highlight the risks of not making the investment.
• Check for alignment with phrases such as “ So far, is this making sense to you?” and “Am I on the right track here?” Ask for verbal responses—do not assume that silence means agreement.

If your business case is approved, clearly recap your understanding of what specifically was approved. If your business case was not approved, ask what was missing that would have made your business case stronger. However, by using due diligence in your preparation, engaging leadership sponsorship for your request, and using the language of business in your business case, you greatly improve the likelihood of approval.

Building the case for learning begins with your value proposition statement. This is your foundation. Your annual learning plan is another avenue for building the case for learning through your engagement of leaders in the process and your business-centric approach. Finally, creating an actual business is another very literal opportunity to build the case for learning. In addition to these specific opportunities, your role is to continually build the business case for learning in everything you do as a learning function.

Key Points for Value Proposition Statements

• A value proposition statement communicates how your learning function brings unique value to the business and reinforces your business case for learning.
• When both your business stakeholders and your learning team members can readily articulate the learning function’s value proposition, this is an indictor that a clear and business-aligned value proposition statement is in place.
• The five key components of your value proposition statement for learning are business objective, learning solutions, value, proof, and differentiation.
• The most important component of your value proposition statement is that it is focused on business and not on the learning function. To ensure that you have accomplished this, apply the “Business leader—‘So what?’ test.”

Exercises for the Value Proposition Statement

• Using the template framework given in figure 3-1, create a value proposition for your learning function.
• Working with your team and/or professional colleagues, apply the “Business leader—‘So what?’ test” to ensure that your statement is business focused.
• Validate your value proposition statement with key stakeholders.

Key Points for Formulating Your Annual Learning Plan

• Formulating an annual learning plan presents an opportunity to engage leaders and obtain their validation of your annual priorities.
• Your ALP should be business focused, linking learning solutions to driving the business strategy.
• Include business-oriented data in your ALP, such as target audience penetration, life cycle of the learning solution, and the organization’s capacity to consume the learning proposed in your ALP.
• To obtain funding for your ALP, use the “menu choice” approach, clearly communicating deliverables for each funding level. This allows your governance board to weigh alternative levels of investment and make a very informed decision. This approach also sets and aligns expectations between the learning function and business leaders.

Exercise for Formulating Your Annual Learning Plan

Using the following checklist, conduct an audit of your current learning plan to identify possible opportunities for improvement. Write a “Y” for items currently in place and an “N” for items not yet in place in your learning plan:

• ALP process mapped to annual business planning process.
• Process in place for governance body to validate and approve learning plan priorities.
• ALP contains target audience penetration goals.
• Analysis of organizational capacity to consume learning solutions is used.
• ALP contains benchmarking data for comparative purposes.
• Funding “menu choice” approach used to delineate set of deliverables corresponding to each level of investment.
• Plan in place to communicate approved ALP to key stakeholders.

On the basis of your responses in the checklist above, what areas offer the greatest continuous improvement opportunities for you?

Key Points for Developing a Business Case to Fund a Learning Project

A business case provides potential investors with information on why investing in a project is a good decision:

• Business leaders routinely use business cases in their operations management.
• Developing strong business cases for learning projects is a required capability for learning professionals.
• The due diligence involved in creating a business case provides the learning team with a business-oriented framework for their project request. This strengthens the likelihood of approval.
• Business cases typically have a similar format, making it easy for decision makers to compare multiple business case requests.
• Key components of a business case include a brief description of the project, a description of the business issue(s) resolved by the investment, data on the benefits of the project, description of alternatives, the investment requested, and an estimation of project returns/benefits.

Exercise for Building a Business Case to Fund a Learning Project

Using the following guidelines, enter the key data points for your next project business case. When complete, share with a finance colleague for feedback on the strength of your data points to obtain an approval for your project request.

• Briefly describe the project for which you seek approval.
• Why is this important to the business? Which of the following business outcomes will result from your project—increased revenues, decreased costs, faster time to market, increased operational efficiency, increased market share, increased customer satisfaction and retention, increased in quality, employee retention?
• For each of the business outcomes you identified, qualitatively and quantitatively describe expected business outcomes.
• List specifically how the key benefits of your project request will drive these business outcomes.
• What other alternatives are available?
• What were your decision criteria for selecting this project versus the alternatives?
• What is the risk to the business if funding is not approved?
• What investment is required? Is this a one-time investment or recurring?
• What return will this investment generate? What is the payback period for this investment?
• What questions or concerns could arise in the approval discussion?