Making ROI Work

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Library Leadership & Management Association (LLAMA), American Library Association (ALA)

One presentation from a program called "Orchestrating PR to Get Funding" hosted by LLAMA PRMS at the 2010 ALA Annual Conference. Presentation is by Joe Matthews, President of JRM Consulting.

Education Business

Making ROI Work Joe Matthews ALA Annual LLAMA Program June 2010

Value of a Library Use Benefits Nonuse Benefits

Value Taxonomy Money saved Time saved Accomplishments

Value Calculation Alternative cost X amount of use

Direct Economic Benefits Economic impact of library spending

Direct Economic Benefits Library as Destination

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.

Presented at OLA Super Conference 2016 In recent years, libraries around the world have been conducting impact studies, predominantly economic impact studies, to communicate their value to stakeholders. While these studies are useful, they often exclude the social, educational and cultural impacts that libraries make within their communities. To address this gap, Dr. Mary Cavanagh, Dr. Bill Irwin and Kimberly Silk are collaborating to develop the L-Index, a library evaluation methodology and toolkit designed to aid libraries in assessing their economic, social, cultural and educational impact. The team will present their work to date, and invite feedback from session delegates.

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Cost-per-use for electronic journals has become a common standard for judging the value of individual titles, but the reports needed to make such judgments can be complex to create. Different options exist for collecting, collating and reporting the necessary data. This session will look at the costs estimated for the in-house process followed at the University of Mississippi, and how those costs in personnel time compared to pricing from outside vendors. It will also report on a survey of other libraries that use outside vendors to judge the perceived value of those services. The survey data reported in the presentation is available upon request from the presenter. Presenter: Christina Torbert Head of Continuing Resources, University of Mississippi ctorbert@olemiss.edu

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Making ROI Work

1. Making ROI Work Joe Matthews ALA Annual LLAMA Program June 2010

2. Investments

3. Cost-Benefit Analysis

4. Value of a Library Use Benefits Nonuse Benefits

5. Value Taxonomy Money saved Time saved Accomplishments

6. “Free Stuff” Cost Avoidance

7. Value Calculation Alternative cost X amount of use

8. Value Calculator

9. Direct Economic Benefits Economic impact of library spending

10. Direct Economic Benefits Library as Destination

11. ROI Studies

12. Consumer Surplus Survey

13. Observations

14. Indirect Benefits

15. Contingent Valuation Willingness to Pay Willingness to Accept

16. Nonuse Benefits Option to use in the future Option for others to use

17. Total Value Direct use value – 40% Use in future – 20% Use by others – 40%

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20.

21. 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.

Editor's Notes

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FlickrTimtom.chTU Delft Library
Flickrrubymatt You understand cost-benefit analysis
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FlickrLibrary From Another Dimension Surrealize
Flickrby Satyabrata St Louis Gateway Arch during Sunset
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