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Implementing E-Learning by Lance Dublin, Jay Cross

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Fundamentals of Making Business Decisions

Several years ago, a researcher told three or four dozen training managers how to sell their programs by using return-on-investment (ROI) calculations. The attendee suggested they:

  1. Get cost figures from the finance department.

  2. Calculate savings in travel cost, salaries, and facilities.

  3. Tote up the value of improved performance after the training.

  4. Divide the benefits by the costs.

Presto! The training managers could whip out convincing ROI numbers to back up their budget requests and justify the proposed training. Right? Wrong! Wise managers know that ROI numbers are no better than the assumptions they are based on and that assumptions are often fantastically overoptimistic. Certainly ROI is a hurdle every ...

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