How to build a business case for a learning experience platform (LXP)
In 2020, the LXP market was valued at around $200 million, and it is predicted to hit $15.7 billion in the next three years. More and more organizations are recognizing the benefits of the learning experience platform (LXP). They combine powerfully with your existing learning management system (LMS) to ensure you support both formal and informal learning online.
The rapid switch to remote working has made the need for digital learning more crucial than ever before - and that includes the need to collaborate with colleagues, share information and drive social learning. Opting for an LXP is a natural solution to the challenge of keeping your people upskilled, informed and engaged no matter where they are, but it can be challenging to get stakeholders on board when it comes to procuring new learning technologies.
In this post, we’ll share how you can build a business case for procuring a learning experience platform, and how to persuade your stakeholders that it’s a smart move for your organization and its learners.
Suggested read: LMS vs LXP: Which one do you really need?
1. State the problem and its measurable impact
Low employee engagement levels lead to a lack of productivity and motivation and high staff turnover rates. This is a huge business cost for your organization, including the cost of recruitment, training and getting new employees up to full competency. Work with your HR team to identify any employee engagement and turnover issues, and review previous employee engagement surveys to identify other engagement challenges. Make clear the cost of replacing disengaged employees within your organization, and therefore how much time and money you could save by improving this situation.
In large organizations, just 20% of employees are considered highly engaged. In small organizations, it’s just 11%.
- Brandon Hall Group, The Complexities of Employee Engagement and How to Improve it, 2020
2. Provide a solution
State the benefits of a learning experience platform. An LXP is a cost-effective way to leverage and consolidate the expertise in your organization. It creates a centralized, informal learning platform populated with user-generated content. Opting for an adaptable learning experience platform such as Totara Engage ensures you can integrate your LXP with your existing LMS, along with other systems such as your HR system, intranet or payroll system for a smoother user experience.
3. Outline the cost of an LXP solution
An LXP based on open technology like Totara Engage will provide you with the best value in terms of flexibility, adapting to new and changing business needs and integration with the rest of your talent ecosystem. Aside from the cost of the platform itself, the costs associated with an LXP can be minimal, as much of the content will be created by users, reused from the LMS or will take place in organic conversations, building a rich knowledge base over time and keeping learning costs down.
4. Outline the organizational benefits of an LXP
The organizational benefits of an LXP include increased commitment, productivity, loyalty and performance from employees, as they are given the power to learn and upskill on their own terms and improve relationships with their colleagues. You will also see the development of skills across the business, including greater opportunities for cross-skilling, giving you a more adaptable workforce. On top of this, a social learning environment can also drive increased synergy and a more positive, collaborative working environment across the organization.
5. Provide a timeline for the launch of your LXP
Depending on the complexity of your requirements, it can be very quick to implement and launch an LXP. One way to get it up and running quickly is by integrating it with your LMS so it can recommend and organize your formal learning courses and resources so you’re not starting with a completely blank slate. In terms of upfront work, you will need to establish the look and feel, set up some collaborative workspaces and populate the platform with some select resources, so be sure to account for this when you present your timeline.
6. Propose change management
Set out plans for your LXP launch campaign to ensure it comes integrated in the day-to-day workflow of your people so you can increase learner engagement. Identify your internal ambassadors and explain how you will maintain momentum and ensure that there is a constant flow of fresh, quality content. You should also cover off any “quick wins” to get your initiative off the ground and building momentum, such as nurturing already-engaged employees, encouraging your leadership team to lead by example and tapping into your employees’ competitive nature with gamification to boost learner engagement.
Want to know more?
Download our guide to discover Totara’s six easy steps to maximize employee engagement.