E-learning continues to gain popularity as a way of delivering instruction in the workplace. However, adoption of e-learning is often considered without determining organizational readiness for e-learning. Comacchio and Scapolan (2004) found that bandwagon pressures such as fear of losing competitive advantage often drive e-learning adoption decisions. Many organizations use various types of analysis to determine instructional need but often at a course level. An e-learning readiness analysis tool will add to existing tools but focus on the workplace organization as the unit of study. The purpose of this design and development study is to create an analysis tool for determining e-learning readiness in organizations. Four existing e-learning readiness models, Aydin and Tasci (2005); Chapnick (2005); Borotis and Poulymenakou (2005) and Psycharis (2005), were used as a basis for identifying factors affecting e-learning readiness which informed the tool design. Using developmental research-based practices the tool was developed for use by practitioners. This study describes the design and development of the tool and the expert review used in the validation of the tool.