If your district or campus is considering a new technology management system and you’ve engaged the appropriate stakeholders, the next step is preparing the business case. Skipping the first step could be a costly mistake if you attempt to build your case without interviewing others and capturing every problem the technology management system could address – and for as many stakeholders as possible.
Step # 2: Build a Strong Business Case
There are four key questions that must be addressed in the business case:
- What is the problem?
- What is the cost or implication of not solving the problem?
- What are the benefits of implementing this system?
- When can we expect to see the benefits?
The Problem
As you likely identified after reading Part 1 of this series, we face a myriad of challenges managing the increasing demand for edtech in K-12 and Higher Education. These problems include, but are not limited to:
- Lack of awareness regarding what has been purchased and approved for use, resulting in low adoption, security risk, and continuous requests for new solutions.
- Disjointed systems – typically a combination of spreadsheets, forms, and sites, resulting in data loss and inefficiency.
- Manual processes which break down, often because each is reliant upon multiple methods of communication among too few staff members with competing priorities.
- Little insight into budget, contracts, and renewal details, causing unintended spending and year-end budgeting woes.
- Staff turnover with minimal knowledge transfer or sharing of resources regarding the ongoing success plan for these technologies.
The Cost of Not Solving the Problem
Once the list of problems is clear and agreed upon, the urgency with which we act should be based on the implication of not changing (retaining status quo) and the costs associated. Fear and excessive caution can hinder any new initiative but can be mitigated with the right research and data.
- Risk – Without standard operating procedures and communication methods, software applications are often purchased or downloaded without appropriate review, leading to data privacy, security, and compliance risks. The average yearly cost of data breaches for K-12 and higher education was $3.65 billion last year (with cyber-attacks ranging from $50k to $1M per incident and data breaches averaging $239 per record).
- Inefficiencies – Too much to do with too little time? Add in inefficient processes and systems for the perfect storm of stress, demotivation, and ineffectiveness. To calculate the cost of inefficiency in your institution, consider the following:
- Hours wasted on help desk tickets researching why staff can’t log in to an application, only to find it wasn’t purchased/renewed this school year.
- Hours wasted in legacy systems such as spreadsheets – looking for product lists, training materials, contract details and attempting to build processes with subpar functionality.
- Hours wasted each budgeting season determining available funds and forecasting next year’s spending.
- Overspending – Operating without a centralized system for educating staff and for overseeing purchases of digital tools, results in redundant requests and purchases and missed contracts. Compare the cost of a technology management system to the total cost of the following:
- Cost of redundant systems (tools that “do the same thing”).
- Cost of underused, inequitably used, or ineffectively used systems (unassigned licenses, ongoing support and professional development), an average of $2M each year per district.
- Cost of systems that renew by mistake due to missed contract renewal terms.
- Turnover – Among common characteristics of job satisfaction – like compensation and benefits – are more complex facets such as autonomy, development opportunities, proficiency, teamwork, and engagement. Equipping staff with the tools needed to be effective and innovative (like a technology management system) will drive focus, productivity, and retention.
- Intangible costs include stress and burnout leading to turnover and negatively impacting colleagues and the student experience.
- Cost of losing a teacher ($9k-21k), after spending an average of $20k to recruit, hire, and train
- Cost of losing any other staff member or leader seeking growth opportunity and transformative leadership
The Benefits and Return on Investment of a Technology Management System
- Centralized Data & Cross-functional Collaboration – break down siloed communication across all departments, including instruction, technology, and business/finance leadership.
- Consistent & Automated Processes – engage all staff in streamlined processes and procedures that are consistent and easy to follow, enabling accountability, velocity, and timely completion/resolution.
- Transparency, Insights, & Inclusive Decision Making – maximize the adoption and effectiveness of edtech investments with heightened awareness, accessibility, and data to inform decisions and advise leadership.
- Increased Capacity & Scalability – enable optimal efficiency among all staff with centralized and shared resources, autonomous learning and support, and simple and modernized processes.
- Cost Savings – minimize risk, inefficiency, overspending, and staff turnover (as noted above)
A well-structured business case should be a tool for persuading and facilitating consensus among stakeholders, ensuring transparency, and setting expectations for successful implementation and adoption. Although it can substantiate the need and justify the budget, business cases are rarely at the top of the priority list for busy leaders in K-12. Don’t let that hold you back from the best decision you’ll ever make for your educational institution…download your TMS Business Case now!
Stay tuned for Step #3: Overcome Budget Constraints.
