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Making ROI Work Joe Matthews ALA Annual LLAMA Program June 2010
Investments
Cost-Benefit Analysis
Value of a Library Use Benefits Nonuse Benefits
Value Taxonomy Money saved Time saved Accomplishments
“Free Stuff” 	Cost Avoidance
Value Calculation Alternative cost 	 X  	amount of use
Value Calculator
Direct Economic Benefits 	Economic impact of library spending
Direct Economic Benefits Library as  Destination
ROI Studies
Consumer Surplus Survey
Observations
Indirect Benefits
Contingent Valuation Willingness to Pay Willingness to Accept
Nonuse Benefits Option to use in the future Option for others to use
Total Value Direct use value – 40% Use in future – 20% Use by others – 40%
Utility of ROI Studies 	Improved credibility 	Complements other use measures 	Complements qualitative information
Frameworks Library  Balanced  Scorecard Social  Return on  Investment
Resources Measuring for Results.  Libraries Unlimited, 2004 The Evaluation and Measurement of Library Services.  	Libraries Unlimited, 2007 Measuring Your Library’s Value.  ALA Editions, 2006. Worth Their Weight.  Americans for Libraries Council, 2007. Making Cities Stronger.  Urban Libraries Council, 2007.

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Making ROI Work

Editor's Notes

  1. FlickrYosemite Reflections #1 - Mirror Lake PatrickSmithPhotography
  2. FlickrTimtom.chTU Delft Library
  3. Flickrrubymatt You understand cost-benefit analysis
  4. FlickrLincoln Park Public Library annethelibrarian
  5. FlickrL'ancêtre de la calculatrice (Ancient Calculator) inde07 (André Veilleux)
  6. FlickrLibrary From Another Dimension Surrealize
  7. Flickrby Satyabrata St Louis Gateway Arch during Sunset
  8. FlickrChic Ladies Jen's Stream
  9. FlickrNiagara Light Show by SheldonBranford
  10. FlickrDelpaxRed Crystal Ball
  11. FlickrWorld Resources Institute Staff Reefs 192
  12. FlickrOld barn at sunset Henri Bonell
  13. Flickr6562 - Eiffel tower Paris France Rolye
  14. Flickr
  15. FlickrRockies .. Canada .. Moraine Lake Zedzap
  16. FlickrQuestions Answered... Travelin' Librarian