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Evaluating E-Learning by William Horton

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Techniques for Measuring Results

Measuring the business results of training is essentially no different from measuring business results from any other kind of effort. You must identify indicators of success and track how they are influenced by training.

Calculate Return-on-Investment (ROI)

The most commonly used measure of business success is ROI. It measures the financial rewards of an initial outlay. The basic formula for ROI is simple: ROI equals return divided by investment. Let’s say you invest $100,000 in a project. The results of the project are a $20,000 per year increase in revenue or savings. You would say that this project has a ROI of $20,000 divided by $100,000 or 20 percent. Though simple, ROI is a very flexible measure of business ...

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