The importance of a skilled and adaptable workforce cannot be overstated. As organizations strive to stay ahead of the curve, investing in a next-generation learning management system (LMS) has become a strategic imperative. However, securing buy-in for such a significant investment requires a well-structured and compelling business case.
Litmos, a Smartchoice® Preferred Provider, partnered with Brandon Hall Group™ on an eBook about building a compelling business case for a new LMS. This blog is based on that resource and breaks down the critical steps.
Identify a Champion
One of the first and most critical steps is to identify a senior leader or leaders outside of the Learning & Development department to champion your initiative. This champion can help bridge the gap between L&D and other parts of the business, lending credibility and visibility to your proposal. Look for an executive who understands the strategic importance of employee development and can articulate the value of the investment to other decision-makers.
Your champion should be able to connect the dots between improved learning capabilities and key business outcomes like increased productivity, innovation and talent retention. Their support will be invaluable in navigating the approval process and securing the necessary resources.
Build Your Internal Team
Assembling the right team is crucial for a successful LMS evaluation and selection process. Create a “selection committee” responsible for creating RFPs, scheduling demos and evaluating potential providers. This cross-functional team should include:
- IT professionals who can assess technical requirements and integration needs.
- Procurement specialists to handle contracting and negotiation.
- HR professionals to align the system with talent management strategies.
- Business leaders who can provide insight into organizational goals and priorities.
- End-users with different backgrounds and departments to represent diverse learner perspectives.
By involving stakeholders from across the organization, you’ll ensure that all relevant needs and concerns are addressed in the selection process. This inclusive approach also helps build broader support for the initiative.
Establish a Realistic Timeframe
Set a realistic timeframe for the selection process that aligns with other organizational projects and objectives. Consider factors like:
- Current IT project load and available resources.
- Budgeting cycles and fiscal year planning.
- Upcoming business initiatives that may impact learning needs.
- Time required for thorough evaluation, negotiations and implementation planning.
Be prepared to adjust your timeline if necessary, but having a clear schedule helps keep the project on track and sets appropriate expectations with stakeholders. Build in delays into your timeline, because they will occur.
Identify Must-Have Features and Requirements
Before diving into vendor evaluations, clearly define your organization’s “must-haves” and “nice-to-haves” for the new LMS. Consider:
- Functionality requirements (e.g., AI tools, mobile learning, social collaboration, gamification).
- Technical specifications (cloud-based vs. on-premise, integration capabilities, security standards).
- Vendor qualifications (industry experience, customer support, financial stability).
- User-experience priorities (intuitive interface, personalization options, accessibility).
Prioritize these requirements based on your organization’s unique needs, industry, size and geographic footprint. This exercise will help focus your search and ensure you select a system that truly meets your most critical needs — now and in the future.
Define Success Metrics
To make a compelling business case, you need to clearly articulate how you’ll measure the success and ROI of the new LMS. Define key performance indicators (KPIs) before starting the selection process, such as:
- User adoption rates.
- Time savings in course administration and delivery.
- Cost savings compared to current training methods.
- Improved compliance training completion rates.
- Impact on employee performance and productivity.
- Learner satisfaction and engagement scores.
By establishing these metrics upfront, you’ll be better equipped to demonstrate the value of the investment both during the approval process and after implementation.
Develop a Change Management Strategy
Implementing a new LMS is as much about managing change as it is about technology. Develop a comprehensive change management strategy to facilitate a smooth transition and maximize adoption. Key elements should include:
- Executive sponsorship and visible leadership support.
- Clear communication of the benefits and rationale for the change.
- Training and support for administrators and end-users.
- Phased rollout plan to manage the transition.
- Feedback mechanisms to address concerns and iterate on the implementation.
Involve end-users from different backgrounds and functions in developing this strategy to ensure it addresses diverse needs and perspectives. A well-executed change management plan can significantly impact the success and ROI of your LMS investment.
Create a Compelling Communication Plan
Develop a strategic communication plan to articulate the need for the new LMS to key stakeholders and senior business leaders. Your plan should:
- Clearly explain the business drivers and expected benefits.
- Address potential concerns or objections proactively.
- Highlight how the new system aligns with broader organizational goals.
- Use data and case studies to support your arguments.
- Tailor messages to different stakeholder groups based on their priorities.
Revisit and refine your communication strategy regularly throughout the selection and implementation process to keep stakeholders informed and engaged.
Prepare for Implementation and Beyond
While building your business case, don’t forget to consider post-selection factors that can impact success:
- Implementation support and resources required.
- Integration with existing systems and data migration needs.
- Ongoing maintenance and upgrade costs.
- Future scalability and flexibility to adapt to changing needs.
- Continuous improvement and optimization plans.
Demonstrating that you’ve considered these long-term considerations will strengthen your overall business case.
The Bottom Line
Building a compelling business case for a next-generation LMS requires careful planning, stakeholder engagement and a clear vision of how the technology will drive organizational success.
By following these steps and tailoring your approach to your organization’s unique context, you’ll be well-positioned to secure buy-in and support for this critical investment in your learning ecosystem.
Remember, the goal is not just to implement new technology, but to transform your learning and development capabilities in ways that measurably impact business performance. With a strong business case and a well-executed implementation plan, a next-generation LMS can be a powerful catalyst for organizational growth and innovation.
For a more comprehensive look at building a business case, check out the eBook here.
About Litmos
Litmos develops learning solutions for top-performing companies. An established leader since 2007, Litmos learning solution includes the easiest-to-use LMS, comprehensive learning content collections, integrations with top workflow tools and services to support success. Thousands of companies trust our learning solution to deliver instruction and intelligence to employees, customers and partners. The solutions are used by more than 30 million people in 150 countries, across 35 languages.
