Building the business case is a necessary, yet somewhat lengthy, process for any enterprise learning management system (LMS) purchase. Whether you’re putting the case together before speaking to vendors or retrofitting it after shortlisting platforms, the goal is the same: clearly justify why this investment matters now, how it ties to business outcomes, and why the chosen solution is the right one.

This guide walks through a practical, executive-ready framework for building a robust LMS business case that stands up to scrutiny from finance, IT, and leadership alike.

TL;DR: The core components of a strong LMS business case

A robust LMS business case should clearly articulate:

1. Executive summary — a concise overview of the recommendation, expected benefits, costs, and risks.
2. Business problem and context — the current state, why it’s a problem now, and what’s driving urgency (e.g., productivity drag, inconsistent performance, knowledge loss).
3. Objectives and success criteria — what the investment must achieve, and how success will be measured in business terms.
4. Options considered (including status quo) — why existing tools, processes, or doing nothing are insufficient.
5. Recommended solution approach — how learning will address the problem in practice, including alignment to real work and performance expectations.
6. Benefits and value case — quantified and qualitative benefits such as productivity gains, time saved, reduced rework, faster onboarding, and performance consistency.
7. Costs and total cost of ownership — licensing, implementation, internal effort, content creation, and ongoing administration.
8. Risks and mitigations — adoption risk, change management, data quality, implementation complexity, and how these will be managed.
9. Implementation plan and timeline — how the solution will be delivered, adopted, and sustained within existing workflows.
10. Governance and accountability — who owns outcomes, measurement, and ongoing decision-making.

1. Executive summary

State the business need

Any enterprise purchase will need business approval. Without stating the obvious, sometimes selecting the highest priority from the many choices of business needs can be hard, especially if this is your first time procuring a learning system.

The challenge is rarely whether learning matters. It’s which business priority the LMS is meant to address.

Those business needs can include, but aren’t limited to:

• Cost effectiveness
• Better employee engagement
• Easy access
• Improved onboarding
• Productivity gains.

At Acorn, one of the most common shifts we help organizations make during procurement is reframing the role of the LMS itself. Instead of positioning the LMS as a system for “upskilling employees,” the business case is anchored around building capabilities the organization actually needs to execute its strategy. Increasingly, that includes clarity on how those capabilities are demonstrated, observed, and reinforced in day-to-day work—not just how they are taught.

That distinction matters.

Upskilling focuses on accumulating individual skills. Capability building focuses on whether people can deliver outcomes. That shift alone can determine whether your LMS is seen as a cost center or a strategic investment.

Not sure of the difference? We’ll explain why it’s a subtle but important shift when building the business case. 

Describe what the problem is, succinctly

Whichever business problem (or problems) you decide to include in your business case, you need to be able to clearly articulate the problem statement—in plain language that every member of your buying group of decision makers or the committee you submit to for purchase can easily understand, at that.

Less is more in problem statements, so that they resonate immediately. Mark Twain said it best:

“I didn’t have time to write you a short letter, so I wrote you a long one.”

For example, when an LMS is positioned purely around skills acquisition, it becomes difficult to attribute value. When you purchase an LMS purely to upskill employees, there are hundreds of thousands of skills that an employee can reasonably acquire, but not all of them move the business forward. In practice, this often leads to more learning activity without clearer expectations of what good performance actually looks like.

Capabilities, by contrast, map directly to organizational outcomes. A capability itself is a combination of skills, behaviors, knowledge, tools, systems, and processes that will deliver a business result. This can be developing an employee value proposition (EVP), building a confirmation of enrolment (CoE), or creating new policies.

Because capabilities are expressed through real work, they can be evidenced through examples, observations, and assessments that show how work is actually done—not inferred from course completion alone.

And this is precisely the difference in what makes a business case successful. Business cases grounded in capabilities make it easier to answer the question executives care about most: “What changes if we invest in this?”

Explain your solution to the problem

Once you have your problem statement(s) down pat, you then need to very clearly articulate how:

1. An LMS addressed the problem; and
2. Why the chosen LMS is fit for purpose.

Again, let’s take the Acorn business problem statement focusing on capabilities versus skills. A skill, by definition, is an ability you learn to do with the goal of executing it well. This can range from something very simple to complex skills, but the skill is isolated in and of itself. (Hence why there are so many skills in the world.)

Capabilities are developed over time, assessed in context, and tied to outcomes. An LMS that supports capability development enables organizations to align learning to what “good” actually looks like in a role, team, or function. That alignment is strongest when learning is informed by evidence from real work—such as assessments, manager observations, and examples of how tasks are completed in practice.

When evaluating solutions, ask whether the platform is designed to:

• Deliver and measure content completions, or
• Structure learning pathways around job-related capabilities and help capture evidence that those capabilities are being demonstrated on the job.

The difference will determine whether learning translates into measurable performance.

Sell the vision, not just the data

Influencing with documentation is by no means easy. Acknowledging that most of us are not Shakespearean wordsmiths, succinctness and brevity are key.

While metrics matter, decisions are rarely made on numbers alone. In their book Made To Stick, Chip & Dan Heath cite research showing that when people recall presentations:

• Only 5% remember individual statistics 
• But 63% remember stories.

In practice, this means grounding your LMS business case in real examples. Projects that stalled because the capability didn’t exist internally. Work outsourced at a premium because teams lacked the confidence or consistency to deliver. Delays caused by onboarding gaps or fragmented knowledge.

2. Budgetary considerations

To avoid paying up to more than you expect, you need to conduct due diligence before committing to a price point for an LMS. Pricing models vary significantly, and the headline figure rarely reflects the total cost of ownership. A comprehensive LMS pricing comparison guide will be your best friend in this process. 

When budgeting for an LMS, consider:

• Integration requirements
• Number of users today and projected growth
• Expected usage patterns
• Volume of content hosted
• Storage requirements
• Feature scalability.

Cloud-based pricing models

Otherwise known as metered models, these pricing models are generally based on the scope of your organization.

Cloud-based pricing usually charges per:

• Individual learner profile
• Active user
• Period of usage.

Pay-per-learner

The most popular pricing model, thanks in part to its simplicity, paying per learner means you pay a fixed figure for a certain number of users. Costs per user usually decrease as volume increases, making it predictable for annual budgeting, since it allows you to onboard hundreds of users upfront.

The pay-per-learner model is right for you if: your total number of users stays relatively constant over a long period, and uptake for eLearning is high in your organisation. 

Pay-per-active-user

While the last model charges irrespective of usage, pay-per-active-user allows you to add an unlimited number of users to the LMS, but only charges you for those who log into the system during the billing period.

One catch: The price is still prepaid and bundled, so even if you purchase a plan for a forecasted 300 users and just 200 log into the system, you still have to pay for the 300.

The pay-per-active-user model is right for you if: your user base fluctuates seasonally, such as in large enterprises with graduate programs or businesses with sales teams who need routine access to new product information. 

Pay-as-you-go

Pay-as-you-go is best exemplified by the ski season: The cost is minimal during off-peak times but substantial when a rush of users access the system. Though it gives you room to breathe during times of lowered usage or revenue, it’s not all that complementary considering eLearning tends to move fast and demand a long-term return. This means the resources required to launch and maintain it often aren’t balanced by usage. Ad hoc billing also makes it tricky to budget for.

The pay-as-you-go model is right for you if: you create and sell content, as it guarantees costs only go up when your revenue does.

Self-hosted pricing models

When hosting yourself, you’ll pay upfront for a subscription or license for a basic version of the software. These models are usually all-inclusive, at least in the sense that you purchase the software outright and own all the data. But that also means you burden the cost of maintenance and hosting beyond the upfront cost. 

Subscription/licensing fee

Purchasing a periodic license for an LMS, paying a monthly or annual fee, and adding the number of users and courses you desire is known as a subscription model. Most providers will offer two or three flat-fee plans to choose from. Like a phone plan, with each price increase you unlock new functionalities. This model is often available for cloud-based systems as well. 

The subscription model is right for you if: you’re budgeting for an upfront payment but don’t know the exact number of users. We recommend avoiding this model if you’re new to eLearning software, as you may end up paying for features you don’t need or blowing your budget if you need to upgrade. 

Single payment

Also called perpetual licensing, this model charges a one-time fee to download the software. Self-hosted LMSs under this category save time on implementation and training, but as with the following ‘freemium’ option, you then shoulder the responsibility and costs of ongoing maintenance, software updates, and feature management. 

The single payment model is right for you if: you have a large user base and plan on using the same LMS and features for a long time.

Freemium

Preface: Anything free still comes at a cost. In this case, the ‘freemium’ model is enticing as it can be freely distributed and modified at your will—but we’ve found many organisations don’t realise they’re paying for code without support.

The real cost is the time you’ll spend on integrations, customisation, and maintenance even if you have sound programming knowledge, given open-source LMSs require extensive configuration to reflect your branding.

The freemium model is right for you if: full system control and customisation is important to your organisation, particularly for start-ups or small organisations with limited budgets.

Additional costs to consider 

Some providers will hide pricing on their website behind a form that requires you to fill out your information, forcing you to wait for them to contact you. They’ll market it as the provider offering value to you (such as sending you informational emails in future)—but really, your data just gets pulled into their marketing cycle. This benefits providers, who see your contact details as a lead, but doesn’t offer you any real information or value. 

And if you can view a pricing model, sadly, it’ll often only get you so far. There are a few extra (ahem, hidden) costs you may find added onto a proposal, which can be easily overlooked if you’re unaware of the fine print. Tip: avoid them by using our detailed LMS pricing comparison guide.

Maintenance

One of those costs that fly under the radar—and which you should be all the more aware of—is system maintenance. An LMS is a software product, which means it requires ongoing maintenance for bug fixes, updates, and upgrades to match evolving operating systems and reflect new industry standards. It’s usually included with cloud-based LMSs, but not for licensed or self-hosted platforms. 

Training & support

Basic support (via email, phone, or ticket system, or tip sheets and forums) is not always included in your price packet, nor is in-person and on-premise training, advanced and priority support, or access to a dedicated Customer Success Manager. Those might be considered perks, without which you’re left to trawl through documentation to self-diagnose and resolve issues.

Content creation

We understand that for many organisations, it’s important that they can create custom content, but while this is a standard part of the system functionality of some platforms, others may charge you for the service. Some providers might even create content for you, but this could be charged anywhere from a one-time fee to per hour, every time.

Implementation

The cost of implementation varies wildly by provider and whether your choice of LMS is cloud-based or self-hosted. Implementation costs may include (but aren’t limited to): 

• External consultants or specialists
• Hardware installation
• Customisation of software
• Data migration
• Data storage
• Integration with other internal or third-party software, such as HR systems and content providers.

3. Analyzing return on investment of your learning management system

Like all technology investments, you need to give thought to what a good return on investment (ROI) for your LMS will look like. Having this clearly defined in your documentation means you are more likely to get the business case approved by decision-makers.

In this section, we’ll walk you through all the items that can be considered for return on investment. One key element to consider (and this is especially true if your CFO is involved) is tangible and intangible metrics of return on investment. Intangibles are notoriously harder to measure and, as such, should be added to documentation as more of a probable range of numbers.

LMS business case: Reduced training time

The value of an LMS isn’t in hosting content—it’s in making learning purposeful. By mapping learning to capabilities and structured pathways, you can reduce the time spent managing training and increase confidence that development efforts are driving real performance.

Add to this that capability-led learning reduces both effort and cost in very practical ways. Instead of L&D teams manually curating courses—or managers defaulting to generic training—the system can connect learning to the capabilities people actually need to build. That means:

• Content is suggested based on the goals any individual employee is working toward; and
• Employees are placed into structured pathways aligned to the capabilities the business needs now and next.

At Acorn, we do this by capturing real examples of good work through assessments and manager observations, so learning reflects proven practice rather than theory.

Costs are reduced in more obvious ways, too. Moving learning online cuts travel and entertainment spend, and on-demand access means employees don’t need to coordinate schedules, travel, or sit through sessions that aren’t relevant to their role.

It also reduces reliance on internal employees to repeatedly design and deliver training. By using established content libraries (such as Go1 or LinkedIn Learning), you can cover common learning needs without pulling experienced people away from their actual jobs to run sessions or rebuild content that already exists.

The result is less admin, lower delivery cost, and learning that’s easier to justify because it’s tied to capability—not activity.

LMS business case: Enhanced customer & partner training

Learning isn’t limited to employees. Many organizations use an LMS to onboard customers, enable partners, and support resellers.

For customers, on-demand learning reduces friction and accelerates time to value—particularly during onboarding. A clear, well-structured training experience helps customers use products or services correctly and confidently, which directly supports retention.

For partner-led go-to-market strategies, an LMS plays a critical role in execution. Resellers, consultants, MSPs, and distributors all need a consistent understanding of your product, positioning, and processes. An LMS allows you to standardize enablement, control the narrative, and support partners at scale without relying on one-off sessions or manual handoffs.

LMS business case: Increased productivity

Productivity lags when people don’t have clarity on what good performance looks like or how to improve it. Capability gaps don’t just show up in development plans; their inherent link to strategy means gaps show up in slower execution, rework, and hesitation in day-to-day work.

Ergo, you can’t just sell the utopia. You need to talk about the cost of inaction.

When gaps persist, productivity erodes. Studies by the Queens School of Business and Gallup show that disengaged workers experience 18% lower productivity. Gallup’s State of the Global Workplace research consistently links engagement to performance outcomes, including productivity and quality. If leaders want productivity gains, the work can’t stop at “more learning.” It has to become clearer, more relevant, and easier to apply on the job.

There is also a direct retention and productivity risk when development is misaligned with role requirements. PwC’s Global Workforce Hopes and Fears Survey consistently finds that employees who don’t feel they are developing relevant skills are more likely to disengage or look for work elsewhere—both of which create downstream productivity and cost impacts for the business.

LMS business case: Revenue impact

Revenue impact is one of the most scrutinized ROI measures in any LMS business case—and for good reason. It’s also where many business cases fall down, because “training drives sales” is a claim almost every vendor makes.

There is, however, a meaningful difference between training activity and performance impact. Research from the Association for Talent Development shows that 84% of organizations believe training helps them meet sales goals, with 42% saying it does so to a great extent. What’s often missing from that picture is why some programs translate into results while others don’t.

The difference is relevance. When learning is disconnected from what is required to perform in a role, sales training becomes theoretical. When it’s tied to clearly defined expectations—what good looks like in practice—it becomes far easier for people to apply what they’ve learned in real selling situations. That’s when training moves from a supporting function to a commercial lever.

4. LMS business case implementation project plan

A strong LMS business case doesn’t end with vendor selection. Implementation is where many learning platforms either deliver value or quietly fail to.

Decision-makers want confidence that the platform can be implemented without disruption, extended timelines, or unplanned costs. Including a clear implementation plan in your business case shows that you’ve thought beyond procurement and into execution.

10 key questions to ask LMS providers

1. What does a typical implementation plan look like?
2. What are the different options and associated costings?
3. What is the average length of time to implement your solution?
4. Are there any global locations where your LMS is incompatible/available to implement?
5. How much access does an organisation have to provisioning/configuration?
6. Do you provide training/resources during implementation and post-implementation?
7. At a high level, please explain the data migration process from an existing LMS during implementation?
8. What is your project methodology?
9. How do you partner with customers, and what are the cost elements?
10. Please disclose whether you have any resource limitations that would prevent implementation from occurring within one month of contract signature?

Feel free to use the following copy as a take-home reminder for all stakeholders during implementation.

Summarizing your LMS business case

At its simplest, a robust LMS business case answers four questions:

1. What are the current challenges you and the business are tackling, and how does an LMS help solve these?
2. Have you done your due diligence in the vendor market of options available that specifically help you solve point 1?
3. What are the total costs of the project? (Not just the software purchase, but any associated costs. Business cases need a true, full picture of costs to be accurate.)
4. How will the purchase be justified from an ROI perspective?

When these answers are clear, grounded in real outcomes, and supported by a credible implementation plan, not only do you have the best chance of selecting the right LMS, the platform itself shifts from a learning expense to a strategic investment the business can confidently support.