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Managing to Growth and Performance Improvements while
Generating Savings: ROI
Julie Evans
Chief Executive Officer
Project Tomorrow
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Your critical challenges today:
1. Achieving your district’s core mission
2. Managing through fiscal difficulties
3. Leveraging technology to drive greater
productivity and efficiency
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Your critical challenges today:
1. Achieving your district’s core mission
2. Managing through fiscal difficulties
3. Leveraging technology to drive greater productivity and efficiency
What is the return on the investment?
What is the value of that investment?
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Development of a new report from Blackboard and Project Tomorrow:
The New Math for Justifying Online Learning
Leveraging ROI and VOI Analysis for Ed Tech Investments
To be officially released on Thursday
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Three goals with this new report:
1. Spark new discussions re: investment decisions
2. Provide real world insights from district leaders
3. Guide new ways of justifying ed tech decisions
(online learning projects as a proxy)
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Today’s discussion:
• Review of report methodology
• Share highlights from report
• Introduce you to a new tool
• Your thoughts and comments
K12 Leadership Roundtable: Let’s Talk ROI & VOI
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?
K12 Leadership Roundtable: Let’s Talk ROI & VOI
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
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Report 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)
K12 Leadership Roundtable: Let’s Talk ROI & VOI
1. What factors are driving online learning projects?
1. What factors are driving online learning projects?
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 prefer online courses for PD
Source: Speak Up 2010 National Findings
1. What factors are driving online learning projects?
Increased interest and demand for online learning
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?
1. What factors are driving online learning projects?
Increased interest and demand for online learning
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
K12 Leadership Roundtable: Let’s Talk ROI & VOI
2. What does VOI and ROI mean in an education setting?
2. What does VOI and ROI mean in an education setting?
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
2. What does VOI and ROI mean in an education setting?
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.”
2. What does VOI and ROI mean in an education setting?
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
2. What does VOI and ROI mean in an education setting?
Defining ROI – Return on Investment
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
2. What does VOI and ROI mean in an education setting?
Defining ROI – Return on Investment
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.
2. What does VOI and ROI mean in an education setting?
Investment Justification
VOI AnalysisValue of Investment
ROI AnalysisReturn on Investment
K12 Leadership Roundtable: Let’s Talk ROI & VOI
3. What is the “new math” for justifying these decisions?
3. What is the “new math” for justifying these decisions?
Introducing . . . . . .
A New Tool for District Leaders:
The Online Learning Justification Ladder
3. What is the “new math” for justifying these decisions?
A New Tool for District Leaders:
The Online Learning Justification Ladder
Step 1: How?
Step 2: Who?
Step 3: What?
Step 4: When?
Step 5: Where?
Step 6: Why?
The Online Learning Justification Ladder
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.
The Online Learning Justification Ladder
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?
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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?
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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?
The Online Learning Justification Ladder
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?
School District of Clay County
The Online Learning Justification Ladder
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?
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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?
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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?
The Online Learning Justification Ladder
Ladder Step 6: Why?
Bottom line:
Why is this project a good investment of our district’s time and/or resources?
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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
The Online Learning Justification Ladder
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!
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Three goals with this new report:
1. Spark new discussions re: investment decisions
2. Provide real world insights from district leaders
3. Guide new ways of justifying ed tech decisions
K12 Leadership Roundtable: Let’s Talk ROI & VOI
Time for more of your thoughts and comments!
Julie EvansChief Executive Officer
Project Tomorrow
Please provide feedback for this session by [email protected].
The title of this session is:
Managing to Growth and Performance
Improvements while Generating Savings: ROI
