The Business Case for an LMS

Business Case for Capabiliti LMS

Is an LMS right for your business? If you’re asking that question, and reading this article, there is an excellent chance that you already believe that an excellent business case for an LMS can be made, and we want to provide some points for you to think about that can provide better justification for your decision.

In case you wanted more clarification, LMS stands for “Learning Management System”, and the key two words in that phrase are “management system”: the LMS allows for the consolidation of managerial functions into one centralised location, and by so doing, it reduces the tedium of training administration, streamlining the administrative effort, and enabling the management of classrooms, instructors, equipment, and resources (in addition to the housing and tracking of web-based training, the function for which it is most commonly used.)

The advantage of having a central location for the storage and deployment of courses is great: when data is collected by the LMS automatically, the pitfalls of manual data entry are avoided, and less time is spent exporting and importing data between systems. Because there is a single, branded portal for e-learning delivery, it enables multiple users to tailor learning programs for their specific roles, and even enables a “learn anywhere, learn anytime” paradigm, which is important for shift workers and workers who need to get their training whenever they have the time to fit it in. Because today’s employees are not necessarily going to be learning where they are working, and want the flexibility to train either at or away from their office, whether outside or inside work hours, it is very important to allow the workers to experience training in multiple locations and modalities, be it instructor-led, web-based, through mobile devices, or even directly at the job (with on-the-job checklists). Regardless of the modality preferred by the learner, the LMS controls all of this in one central location.

As a final side benefit, having all of the data in a central location allows the manager to gain insight with analytics, to create analytical metrics that allow the business to make better decisions. Want to know if your particular course is effective? Want to know if a particular course has resulted in improved benchmarks for a business process? The numerous reports the LMS provides can supply these answers, and much, much more.

Perhaps most importantly, the LMS is an absolutely key investment in key regulated industries such as healthcare, public service, banking and mining, in short wherever there are safety programs, and wherever worker’s — or patient’s — lives are at risk based on the knowledge supplied or not supplied by a compliance program.

Litigation is expensive: a typical lawsuit could provide liability in the hundreds of thousands of dollars, and a sizable minority of midsize companies have at least one litigation incident every few years, and in some industries, every few months. In these industries, evidence that trainees have completed training is imperative to maintaining a defense against legal actions, shifting the legal responsibility to the employee and away from the company.

But there is more to it than that: by enforcing and tracking compliance, the LMS enables the identification of staff who have completed certain qualifications, and thus provides a ready means to single out those employees who are most worthy of promotion — or its opposite.

The ability to track what has occurred leads to important, measurable outcomes. Take the case of a hospital, for example. With a staff of employees who have gone through effective compliance training revolving around safety, hygiene, and health, the following results could be expected:

• Better safety for staff (less injury, disablement and death);
• Better health outcomes for patients;
• Improved consistency of care;
• Improved quality of care;
• Reduced risk to worker’s and patient’s lives
• Improved time frames for on-boarding, where new staff become more productive more quickly;
• Fewer litigation incidents;
• Proof of completion for staff, leading to Recognition of Prior Learning

So, can a business case be made for an LMS in your company? The answer is simple: if you are in a regulatory environment where compliance training is expected, and the failure to initiate that training can result in expensive litigation, the answer is absolutely yes; in fact, the acquisition of an LMS is a mission-critical business expense to be budgeted and implemented as soon as possible.

But even if your business is not in a regulatory environment like a hospital, your business may have a large and fluid workforce, and the nature of your company may require continual up-to-date training; if that is also the case, an LMS is definitely something that you are going to want to consider.

In short, wherever there is training, there is likely to be a business case for an LMS, and as you analyse the significance of the factors addressed by an LMS, you may find the decision to be easier than you think.

Capabiliti LMS is an Australian developed and supported learning management system with a focus on the public sector and healthcare sector, providing organisations with the ability to deliver both accredited and non-accredited training in an enterprise context.

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