Choosing business tools to demonstrate library value


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Keynote presentation delivered by Sheila Corrall of the University of Sheffield at the 2011 BLA conference held in Sheffield from 13-15 July.

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Choosing business tools to demonstrate library value

  1. 1. Information SchoolMaking an impact: demonstrating valueChoosing Business Tools toDemonstrate Library ValueProfessor Sheila CorrallLibraries & Information Society Research Group
  2. 2. Information School Presentation outlineIntroduction•  Definitions of value, methods of measurement and current concerns for academic librariesBalanced Scorecard•  Explanation of the concept, benefits of the tool, an example and feedback from the library sectorStrategy Maps•  Explanation of the concept, its relationship with the scorecard and examples of library mappingReferences and further reading•  Case studies, articles, books and web resources
  3. 3. Information School Defining valueInternal focus (Oakleaf, 2010)•  Use or utility −  traditional usage statistics (the more, the better)•  Return on investment or value for money −  perceived benefits divided by perceived costs•  Production of commodities −  quantity produced multiplied by price per unitExternal focus•  Impact −  contribution to learning, teaching and research•  Competing alternatives or desired value −  perceived as better than alternatives (e.g. Google)
  4. 4. Information School Aspects of value Productivity Return Offset Savings Grants and Economic Direct AllowancesVALUE Profit Social Community Personal(Cram in Rooney-Brown, 2011)
  5. 5. Information School Measuring performanceQuantitative Qualitative methodologies methodologies•  Audits •  Social auditing −  performance indicators −  service outcomes o  questionnaires,•  Return on investment interviews −  cost-benefit analysis •  Ethnography −  consumer surplus −  narrative descriptions −  cost of time and effort o  observation −  contingent valuation Mixed methodologies −  input-output models •  Social return on(Rooney-Brown, 2011) investment
  6. 6. Information School A culture of assessmentDefining a ‘Culture of Assessment’ ‘A Culture of Assessment is an organizational environment in which decisions are based on facts, research, and analysis, and where services are planned and delivered in ways that maximize positive outcomes and impacts for stakeholders. A Culture of Assessment exists in organizations where staff care to know what results they produce and how those results relate to customers’ expectations. Organizational mission, values, structures, and systems support behavior that is performance and learning focused.’ (Lakos & Phipps, 2004)
  7. 7. Information School Research agenda (Oakleaf, 2010)•  How does the library contribute: −  to student enrolment? −  to student retention and graduation rates? −  to student success? (e.g. graduate destinations) −  to student achievement? −  to student learning? −  to the student experience? −  to faculty research productivity? (e.g. papers, patents) −  to faculty teaching? (e.g. tutorials, assignments) −  to overall institutional reputation or prestige? (e.g. special collections, iconic buildings, league tables)
  8. 8. Learning Research General Faculty Institutional Student Research Reputation Enrollment Productivity or Prestige Student Faculty Retention & Grants Graduation Student Success Areas of library impact Student Achievement on institutional missions Student Learning (Oakleaf, 2010) Student Experience •  Is this a sensible balance? Faculty •  Does it reflect your values? Teaching
  9. 9. Environment Assessment framework Vision, Mission, Goals Objectives, Communication, $ goals, cues, Communication, $ budgeting Other Academic Communication, and Functional Library interaction, (Action) Units How will we contributions (Action)know or mission Assessment: is being Do selected measures fulfilled? indicate goals are being achieved? Outcomes of interest Measures: Direct, Surrogate, Composite (Fraser et al., 2002)
  10. 10. Information SchoolThe BalancedBusiness ScorecardA strategic performance measurement framework,providing a comprehensive view of business performanceand relating measurement to strategy, vision and mission– invented by Kaplan & Norton (1992, 1996)
  11. 11. Information SchoolBalanced business scorecard•  A strategic performance measurement system enabling broader assessment of organisational performance than traditional indicators•  Helps managers look beyond financial metrics and physical assets to customer measures and intellectual capital (e.g. innovation and learning)•  Combines 20-30 measures from 4 perspectives to give a fast but comprehensive and balanced view of how an organisation is performing (Kaplan & Norton, 1992)
  12. 12. The balanced business scorecard4 perspectiveson performance• Financial orshareholder• Customer orservice• Internalprocess• Innovation andlearning(Kaplan & Norton,1992, 1996) © Paul Arveson 1998
  13. 13. Information SchoolBenefits of the balanced scorecard•  Not only provides a fast comprehensive view of business performance, but also connects measurement with strategy and vision•  In addition, the customer focus encourages organisations to direct management attention towards critical processes (rather than functions)•  The balanced approach has made the system popular with organisations in the public sector and with academic, national and public libraries
  14. 14. Mission Translating a Why we exist Core Values mission into What we believe in Vision desired What we want to be outcomes Strategy How we plan to get there Balanced Scorecard (Kaplan & How we will know that we have arrived Norton, Strategic Initiatives 2001: 73) What we need to do Personal Objectives What I need to do Strategic Outcomes Satisfied Delighted Effective Motivated and PreparedStakeholders Customers Processes Workforce
  15. 15. The Mission Funder Perspective Customer Perspective ‘If we succeed, how will ‘To achieve our vision, how we look to our taxpayers must we look to our (or donors)?’ customers?’ Internal PerspectiveBalanced ‘To satisfy our customers and financial donors, which businessscorecard processes must we excel at?’ for the public Learning and Growth Perspective (Kaplan & Norton, ‘To achieve our vision, how must our sector organization learn and improve?’ 2004: 8)
  16. 16. Information literacy scorecardShareholder/financial perspective Customer/service perspectiveHow do we look to our funders? How do we look to our clients?Goals Measures Goals MeasuresEconomy •  Unit costs (e.g. marking Quality •  Satisfaction rating student bibliographies) (e.g. evaluations byGrowth •  Income generated (e.g. students of teaching) IL courses delivered to Penetration •  Participation levels local businesses and (e.g. % taught units professionals) where IL embedded)Internal/process perspective Innovation/learning perspectiveWhat must we excel at? Can we continue to improve?Goals Measures Goals MeasuresReliability •  Percentage downtime New modes •  Online products (e.g.Efficiency •  Trainee hours per custom VLE tutorials) member of teaching staff Expertise •  Qualifications gained (e.g. PGCert in HE)
  17. 17. Information School Critical success factorsLessons learned from BSC implementation1.  Define and communicate clearly the library mission.2.  Ensure strong leadership and management support.3.  Measure the right things, not everything.4.  Aggressively communicate the performance results to the library’s constituency.5.  Align incentives creatively to the BSC metrics and find new ways of motivating staff.6.  Make change based on BSC analysis, and demonstrate that change is data driven. (Lloyd, 2006)
  18. 18. Information SchoolStrategy MappingA strategy development and strategic management systemthat uses Kaplan & Norton’s (1992) four perspectives todefine goals and show their cause-and effect relationshipsin an easy-to-read one-page summary that can becommunicated throughout the organisation.
  19. 19. Information SchoolStrategy maps•  Concept introduced by Kaplan & Norton (2000) as a framework for developing and implementing strategies based on the Balanced Scoredcard perspectives•  Strategy maps use the BSC framework to define objectives related to the four perspectives and then display their important cause-and-effect relationships•  They enable managers to capture their plans in an easy- to-read one-page graphical summary and to connect vision, strategy and resources at all organisation levels•  A key feature of the model is its emphasis on communicating the strategy to the whole workforce
  20. 20. Mission ‘The balanced scorecard Why we exist is a step in a continuum Values What’s important to us that describes what value is and Vision What we want to be how it is created’ Strategy Our Game Plan Strategy Map (Kaplan & Translate the Strategy Norton, Balanced Scorecard 2004: 33) Measure and Focus Targets and Initiatives What we need to do Personal Objectives What I need to do Strategic Outcomes Satisfied Delighted Efficient and Effective Motivated and PreparedShareholders Customers Processes Workforce
  21. 21. Library strategy map contents‘Library strategic plan on a page’•  Vision and/or Mission (Purpose) statement•  Strategic (Key) Themes and Objectives grouped under the four balanced scorecard perspectives −  Customer Value Proposition or Customer/User Needs −  Financial Sustainability or Funders’ Requirements −  Internal Process or Improving Effectiveness −  Learning and Growth or Potential (Staff Development)•  American examples have 12-13 objectives, British examples have 30-31 objectives
  22. 22. Library strategy map guidelines‘Visual framework for a library’s strategy’ OrganizationalA good strategy map will link together Readiness•  the overall customer value proposition, Perspective•  the desired productivity goals for internal processes•  the capabilities required from the library itself (staff skills, information technology and leadership),•  the characteristics of a physical collection and electronic database provision,•  the budget and other financial resources required to deliver the library’s vision Information Resources Perspective (Matthews, 2008: 58)
  23. 23. Strategy map template with intellectual capital items (Kaplan & Norton, 2004: 55)
  24. 24. Information SchoolExamples of LibraryStrategy Maps Leeds University Library McMaster University Library University of Virginia Library University of Warwick Library
  25. 25. Leeds University Library Strategy Map 2006-07
  26. 26. Strategy MapMission: advance teaching, learning and research at McMaster by teaching students to be successful, ethical informationseekers, facilitating access to information resources, providing welcoming spaces for intellectual discovery and promotingthe innovative adoption of emerging learning technologies Create world-class Strive for Customer Improve discovery of teaching & exemplary service and access to learning that is responsive scholarly resources environments to user needs Internal Processes Marketing and Services Operational Effectiveness Communications Enhance the Library’s Promote the Library’s Integrate the Library commitment to strategic role in the discovery, into the University’s planning dissemination, and teaching, learning, preservation of Track efficiency and and research mission knowledge effectiveness of Library programs and services Develop highly- Nurture a healthy, Learning & trained, Grow an Encourage Growth collaborative, and technologically- evidence-based innovation and dynamic fluent superlative culture risk taking organization staff Increase alternate sources of Finances Align the Library’s budget revenue e.g. fundraising, with the University’s mission grants and revenue generation
  27. 27. Facilitate world-class research, teaching and learning through leadership in the creation, access, use, and preservation of information and knowledge for scholars at the University of VirginiaCustomer Perspective Financial Perspective Maintain funding Customer Needs: Welcoming Focus on Easy access to spaces that Services and Increase levels to responsibly resources & superb promote programs that add financial base steward the services with information and productivity and value to for unrestricted University’s high ratio of resources collaboration scholarship funds knowledge value to cost resourcesInternal Processes Marketing & Communications Library Services Operational Efficiency Develop effective digital services Prioritize strategic Promote programs and Library as adjust budget and intellectual Align administrative, technical, staffing accordingly crossroads and public service priorities Strategic Skills / Workforce Infrastructure Culture Promote culture of assessmentLearning Implement space and and accountability Recruit, develop, and retain technology upgrades to supportAnd productive, highly qualified staff cutting-edge services andGrowth Develop “community” model of initiatives leadership and organization
  28. 28. University of Warwick Library Strategy Map 2009/10
  29. 29. Strategy maps and balanced scorecardsMeasurement and communication ‘Strategy maps and Balanced Scorecards constitute the measurement technology for managing in a knowledge-based economy. ‘By translating their strategy into the logical architecture of a strategy map and Balanced Scorecard, organizations create a common understandable point of reference for all their units and employees.’ (Kaplan & Norton, 2001: 11)
  30. 30. Information SchoolReferences andRecommended ReadingLibrary case studies, journal articles, books andweb resources
  31. 31. Information School Library case studiesCribb, G. & Hogan, C. (2003) ‘Balanced scorecard: linking strategic planning to measurement and communication’, 24th Annual IATUL Conference, 2-5 June, Ankara, Turkey., S. (2006) ‘Building library success using the Balanced Scorecard’, Library Quarterly, 76 (3), 352-361.Pienaar, H. & Penzhorn, C. (2000) ‘Using the Balanced Scorecard to facilitate strategic management of an academic information service’, Libri, 50 (3), 202-209., R. (2001) ‘Performance, processes and costs: managing service quality with the Balanced Scorecard’, Library Trends, 49 (4), 709-717.
  32. 32. Information School References/readingsFraser, B.T. et al. (2002) ‘Toward a framework for assessing library and institutional outcomes’, portal: Libraries and the Academy, 2 (4), 505-528.Kaplan, R.S. & Norton, D.P. (2004) ‘Measuring the strategic readiness of intangible assets’, Harvard Business Review, 82 (2), 52-63. – covers the extension of the Learning and Growth perspective to intellectual capital and its incorporation in strategy maps.Kaplan, R.S. & Norton, D.P. (2008) ‘Mastering the management system’, Harvard Business Review, 86 (1), 62-77. – includes a very useful resource list for strategic planning.Lakos, A. & Phipps, S. (2004) ‘Creating a culture of assessment: a catalyst for organizational change’, portal: Libraries and the Academy, 4 (3), 345-361.Rooney-Brown, C. (2011) ‘Methods for demonstrating the value of public libraries in the UK: a literature review’, Library and Information Research, 35 (109), 3-39.
  33. 33. Good booksBrophy (2006) Kaplan & Norton Dugan et al. (2009) (2004) Markless & Oakleaf (2010) Streatfield (2006) Matthews (2008)
  34. 34. Provides links to•  Bibliographies•  Reports•  White papers•  Marketing tools•  Value calculators
  35. 35. Any Questions? Information School Email Sheila Corrall School / The University of Sheffield 2010 of Sheffield © School, The University