Accurately Estimating the Cost of E-Learning Projects ASTD Techknowledge Session FR100

1. Mark Steiner Accurately Estimating the Cost of E-Learning Projects ASTD Techknowledge Session FR100

2. Session Agenda • Introductions • Session Approach • Roles • Milestones & Deliverables • Writing and Responding to RFPs • Assumptions • Estimation Types • Estimation Techniques/ Spreadsheets • Pitfalls • Q & A mark steiner, inc. htttp://www.marksteinerinc.com

3. Who am I? • BS Industrial Tech. ‘88 • MS Instructional Design ‘92 • 20+ years eLearning & interactive media dev. experience • Dozens of projects from 2 min. to 33 hours in runtime • Familiar with many development tools • Presenter - eLearning Confs. US & Europe • Started own eLearning consulting company in March 2001 mark steiner, inc. htttp://www.marksteinerinc.com

4. In what sector do you work? A. Corporate B. Academic C. Government/Municipality D. Other mark steiner, inc. htttp://www.marksteinerinc.com

5. What is your role? A. Project Manager B. Instructional Designer C. Developer D. Other mark steiner, inc. htttp://www.marksteinerinc.com

6. What’s an Average Project? A. $10,000 or less B. $10,000 - $50,000 C. $50,000 - $100,000 D. Greater than $100,000 mark steiner, inc. htttp://www.marksteinerinc.com

7. A Quote . . . All people who have turned out worth anything have had the chief hand in their education. –Sir Walter Scott mark steiner, inc. htttp://www.marksteinerinc.com

8. Session Approach • I usually dislike when people say: “Oh, it’s an art.” • Art vs. Science: I’m going to attempt to identify as much of the science as I can. • Science = Process: Remember the Scientific Method? • I’m a science / process person, therefore this session will have that sort of approach • Ummm . . . There’s still some art to it. ; ) mark steiner, inc. htttp://www.marksteinerinc.com

9. Roles • Strategy • eLearning Project Manager • eLearning Strategist • Content • Instructional Designer • eLearning Programmer • Instructional Developer • Graphics • Media Specialist • Training Administrator • Technology • Technical Architect • Integration Specialist • Client • Buyer • Acceptor • Project Manager • Reviewer • SME mark steiner, inc. htttp://www.marksteinerinc.com

10. Another Quote . . . The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one. –Mark Twain mark steiner, inc. htttp://www.marksteinerinc.com

11. Milestones and Deliverables • Needs Analysis • Design Document • Prototype • Storyboards • Scripts • Alpha/Beta/Final • Other Services mark steiner, inc. htttp://www.marksteinerinc.com

12. A Calculator Example Comparing Traditional Learning to eLearning Launch mark steiner, inc. htttp://www.marksteinerinc.com

13. RFPs Poll A. I’m not sure what RFP stands for. B. I know what it stands for but have never written one. C. I have written and/or responded to a few of them. D. I have written and/or responded to many of them. mark steiner, inc. htttp://www.marksteinerinc.com

14. Writing RFPs • Carefully and succinctly define the problem • Define the RFP process: Format, Protocol, Submission Requirements, etc. • Determine key dates both in the RFP process and project milestones • Determine evaluation criteria, check for internal company/department requirements • Get help (inside or outside) if needed • If you can’t define the problem and are too vague, responding companies will have too little to go on, cause wide ranges of solutions and cost estimates. Perhaps consider changing the scope to only include analysis. mark steiner, inc. htttp://www.marksteinerinc.com

15. Writing RFPs:Sample RFP Outline Administrative Section Ground rules Bidder’s conference Relevant dates Proposal/submission format Mandates a proposal outline and pricing outline Evaluation Criteria Mandatory requirements Optional requirements Technical Section Description of current situation Current technical environment Current limitations Provide specific background information Provide specific examples Description of proposed environment Make requirements functional in nature Management Section Project management plan Delivery and acceptance Maintenance, Training, Documentation Vendor qualifications and references Price Section Cost of building the application Vendor software, third-party software System hardware required Project Management Installation Maintenance, Training, Documentation Appendices – Technical /Contract Info Current technical infrastructure Corporate standards Sample contract Non-disclosure agreements

16. Responding To RFPs • Read the RFP very closely • Quickly determine Go/No Go status • Follow the RFPs prescribed process • Do any colleagues have experience with the company and/or RFPs? • Bidders meeting basics • My opinion: Unless you’re a large company and/or have an “In”, it's a hard way to go. mark steiner, inc. htttp://www.marksteinerinc.com

17. A Quote . . . Good fences make good neighbors. –“Mending Wall,” by Robert Frost mark steiner, inc. htttp://www.marksteinerinc.com

18. Another Quote . . . Problems that go away by themselves come back by themselves. –Marcy E. Davis mark steiner, inc. htttp://www.marksteinerinc.com

19. Documenting Assumptions • Define *everything* that you can • Client Participation • Central Point of Contact • Review and validation parameters • Delay penalties • Runtime • Travel • Project file formats • Technical Specifications • Duplication • Revisions • Knowledge Transfer • List and Define any other Risks and Constraints mark steiner, inc. htttp://www.marksteinerinc.com

20. Estimation Types:Time and Materials • Usually an initial estimation of cost is given in a range (between $X and $Y) • Risk is minimized for vendor • Client only pays for hours worked • Profit built into rate structure • My advice: If possible, always pitch analysis as initial step. mark steiner, inc. htttp://www.marksteinerinc.com

21. Estimate Types: Fixed Cost • Key Point: Fixed cost does not mean the cost can never change. It means that the cost is fixed to a scope. If the scope changes, so should the cost. • It also assumes the scope is definable, so then the cost can be fixed (linked) to the defined scope. • Risk is built into price. Add 15 – 40% • Why are there so many neon lights & fine hotels in Vegas? • When, then? • Client requirement • Repeated, consistent, well-defined project(s) • Sometimes Vegas pays out big buck$. mark steiner, inc. htttp://www.marksteinerinc.com

22. Another Quote . . . Whenever things sound easy, it turns out there’s one part you didn’t hear. –Donald E. Westlake Dig the well before you are thirsty. –Chinese proverb mark steiner, inc. htttp://www.marksteinerinc.com

23. Estimation Techniques • Estimating Via Key Categories • Estimating Via Run Time and Screens • Estimating Via Detailed Screen Information • Filling in the Details mark steiner, inc. htttp://www.marksteinerinc.com

24. Estimating Via Key Categories • Content/Research • Technical Complexities • Media Richness Launch Calculator Another Calculator Perspective mark steiner, inc. htttp://www.marksteinerinc.com

25. Estimating via Run Time and Screens • What’s an hour? • 30-50 Screens per hour • Based on mix of interactivity/screen type • 10-30 seconds for text-only screen • 1-1.5 minutes for MC questions mark steiner, inc. htttp://www.marksteinerinc.com

26. Estimating Via Detailed Screen Information • Occasionally, the detailed Design Document is already complete. • Similar to Run Time, except for amount of info available. Analysis is finished-maybe. • Less art, more science • Build a matrix that contains all screen/ interaction types. Assign a cost factor to each. • Apply metrics to content to determine cost mark steiner, inc. htttp://www.marksteinerinc.com

27. Filling in the Details • A Spreadsheet via Roles • A Spreadsheet via Process and Roles • Using Microsoft Project mark steiner, inc. htttp://www.marksteinerinc.com

28. Client CommunicationEstablishing Value • Not to be a marketing weasel, but define and communicate your Value Proposition. • But . . . find and use your own words. • Leverage the situation so that it would be foolish and risky for the client *not* to heed your advice. • If the former is not possible, perhaps it's not a project you should undertake. mark steiner, inc. htttp://www.marksteinerinc.com

29. Another Quote . . . Smooth seas do not make skillful sailors. –African proverb mark steiner, inc. htttp://www.marksteinerinc.com

30. Pitfalls List • Unclear scope • Scope creep • Unclear client/vendor roles • No single point of contact with client/vendor • Ill-defined system specifications • Hours allocated to a task not sufficiently dissected/broken down • Lack sufficient skill base to complete a project mark steiner, inc. htttp://www.marksteinerinc.com

31. Contact Information Mark Steiner mark@marksteinerinc.com 773-392-7967 3036 N. Leavitt Chicago, IL See examples of eLearning Calculators, Reusable Learning Objects, related links, past conference slides and materials, and other information at: marksteinerinc.comClick on Resources mark steiner, inc. htttp://www.marksteinerinc.com

32. Final Quote . . . He who is afraid to ask is afraid of learning. –Danish proverb mark steiner, inc. htttp://www.marksteinerinc.com

33. Q & A What questions do you have? mark steiner, inc. htttp://www.marksteinerinc.com

34. Thank you! mark steiner, inc. htttp://www.marksteinerinc.com