At some point, most HR, L&D and people & culture specialists come to the realisation that they need to buy or replace LMS software. But buying LMS software can be a tricky business, least of all because stakeholders with veto power can have many price-related concerns. To be successful, you need to build consensus amongst your buying group regarding the value of your chosen LMS solution. 
 
Start the consensus process by considering these 3 questions and having solid answers for your LMS buying group members.  

1. What is an LMS and why do we need one? What the buying group ultimately wants to know is what the system in question will do for them and why they need it now. Aside from L&D living in one central location, an LMS creates a hub for internal recruitment, career pathways, unique content, compliance training and data on current employee skillsets. When lacking the right employees with the relevant skills at the right time, an organisation will find themselves stuck making poor progress.
2. How much will an LMS cost us? All department heads know that any software purchase isn’t cheap. Legal and finance will want finer details, and IT will want to know what it will cost them in time. The highest drivers of productivity (and by association profitability) are engagement, performance and development. An LMS can not only improve all 3 of these aspects, but the entire strategic workforce planning cycle.
3. What will the ROI of the LMS be? Determining a tangible ROI figure upfront is tricky. As such, it’s better to think about the value created from the LMS. Talk about the problems an LMS can solve that would go unmitigated without it such as clear learning pathways, up-to-date training assets, change-ready employees and lowered attrition rates. Department leads will always think in monetary terms, and as such won’t always understand the more covert benefits.

Your best friend when building buying consensus is an LMS request for proposal (RFP). This handy document gives every department a chance to raise their issues and flag requirements. It also means you’re clearly outlining every feature and the value it will provide for you.  
 
An RFP is the crucial historical document that will support your concerns throughout the procurement process. Not only does it help you create a clear understanding internally, but it is also develops a clear understanding of those requirements to a vendor.  


 
For a more in-depth look at LMS budget consensus, have a read of the full article.