Running your high school library like a business

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Texas Library Association, Houston, TX April 2009.

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  • How many people still have a positive opinion about business? History of presentation.  Failure of social media marketing project.  Delving into business books, reading business week, and thinking, led me to a different approach.
  • Envision a collaborative efforts where hundreds of librarians share their best ideas and collaborate with colleagues
  • Show Destiny Demo here!
  • Running your high school library like a business

    1. 1. Running your high school library like a business <ul><ul><li>How to transform your Library using Business acumen! </li></ul></ul><ul><ul><li>by Neil Krasnoff </li></ul></ul>
    2. 2. Evolution of this Presentation <ul><ul><li>Original plan: talk about the success of Lehman High School and its success using 21 st Century strategies. I Also hoped to present a comprehensive look at all library operations from a business perspective. </li></ul></ul><ul><ul><li>Facebook efforts did not increase involvement and circulation. </li></ul></ul><ul><ul><li>Did a lot of reading and interviewing regarding marketing and business practice and theory and got very overwhelmed.  </li></ul></ul><ul><ul><li>Decided to work with 3 C's and 6 P's and have group share ideas. </li></ul></ul>
    3. 3. Goals of this Presentation <ul><ul><li>1. Provoke some rethinking of current library practices and challenge ourselves for re-engineering practices where needed. </li></ul></ul><ul><ul><li>2. Participants will think about library in more structured and disciplined way </li></ul></ul><ul><ul><li>3. Create advocates for positive library vendor relations and better vendor service. </li></ul></ul><ul><ul><li>4. Provide some concrete strategies that everyone can implement now. </li></ul></ul><ul><ul><li>5. Participants will apply the 6P Marketing model and continue collaboration after TLA conference </li></ul></ul>
    4. 4. Topics Covered <ul><ul><li>1. What can Business teach Libraries? </li></ul></ul><ul><ul><li>2. One Business Framework-The 3 'C's </li></ul></ul><ul><ul><ul><ul><li>Customers </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Competition </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Change </li></ul></ul></ul></ul><ul><ul><li>3.  Library as a retail store </li></ul></ul><ul><ul><li>4. Technology:  Opening new channels for distribution and marketing </li></ul></ul><ul><ul><li>5. Marketing: The 6P Model and collaborative project </li></ul></ul>
    5. 5. What can the best business teach libraries? <ul><ul><li>The importance of focusing on the customers   </li></ul></ul><ul><ul><li>How to deal with competition </li></ul></ul><ul><ul><li>How to deal with constant change </li></ul></ul><ul><ul><li>How to use Technology </li></ul></ul><ul><ul><li>The importance of innovation </li></ul></ul><ul><ul><li>How to think about work, your colleagues and grow in your career </li></ul></ul>
    6. 6. What are Knowledge Workers? According to Peter Drucker <ul><ul><li>Self-aware, especially regarding their strengths </li></ul></ul><ul><ul><li>Dedicated to self-improvement and staying ahead of the curve regarding their primary skills </li></ul></ul><ul><ul><li>Work in flexible and innovative organizations where  employees focus on applying their strongest skills </li></ul></ul><ul><ul><li>Professional identity extends beyond current job </li></ul></ul><ul><ul><li>  Always planning for the next half of career </li></ul></ul><ul><ul><li>HS Librarians can't always function as Knowledge Workers because of the wide range of job duties and we don't work within flexible and innovative organizations </li></ul></ul><ul><li>  </li></ul>
    7. 7. Case Study: Netflix vs. Blockbuster           Chart from http://finance.yahoo.com
    8. 8. What does the case of Netflix vs. Blockbuster say Directly to Libraries? <ul><ul><li>Delivery of product-convenience </li></ul></ul><ul><ul><li>Selection- The more the better </li></ul></ul><ul><ul><li>Late fees and pricing </li></ul></ul><ul><ul><li>Customization of recommendations </li></ul></ul><ul><ul><li>Netflix understands social needs of customers </li></ul></ul><ul><ul><li>In-store experience at Blockbuster lacking </li></ul></ul><ul><ul><li>Netflix is more innovative </li></ul></ul><ul><ul><li>Netflix has better work environment </li></ul></ul><ul><ul><li>Blockbuster was in denial a long time and paid the price </li></ul></ul>
    9. 9. Customers: The First 'C' <ul><li>&quot;A Customer orientation in marketing acknowledges that we can't change customers to fit what we have to offer.&quot; </li></ul><ul><ul><li>-From &quot;Strategic Marketing for Non-Profit Organizations&quot; </li></ul></ul><ul><li>  </li></ul><ul><li>Libraries must meet the students and teachers where they are &quot;See them as our Target Market and define their needs!&quot;  </li></ul><ul><li>  </li></ul><ul><li>A Customer orientation means we need to cater to picky readers and teachers that don't have time for library use.   </li></ul>
    10. 10. <ul><li>Students </li></ul><ul><ul><li>The Web, videogames, cell phones, etc. </li></ul></ul><ul><ul><li>Not that into privacy! </li></ul></ul><ul><ul><li>Not very patient </li></ul></ul><ul><ul><li>Limited time to read </li></ul></ul><ul><ul><li>Many don't see reading as essential or important </li></ul></ul><ul><ul><li>Expect information to be free and easy to locate </li></ul></ul><ul><li>  </li></ul><ul><li>Teachers </li></ul><ul><ul><li>Many of the same qualities as students </li></ul></ul><ul><ul><li>Limited time for planning and reflection </li></ul></ul>General Things about our Customers
    11. 11. Poll on Library Web site   What is your favorite tool for communicating with friends and family? Text message via phone  48  52.7% Phone (voice)  20  22% Facebook, Myspace 13  14.3% Email  7  7.7% AIM/Internet instant message 2  2.2% Paper (cards and letters) 1  1.1%   
    12. 12. Customer Relationship Management (CRM)‏ <ul><ul><li>CRM i s based on the premise that 1 to 1 relationships with a vast majority of customers is impossible </li></ul></ul><ul><ul><li>Branding is the most coarse means of CRM </li></ul></ul><ul><ul><li>&quot;Brand strength  and brand value are a sum total of experiences that have with the company and all its products and services.&quot;-CRM Handbook Ch 1 </li></ul></ul><ul><ul><li>Profiling customers based on past purchases is a key element of most CRM initiatives </li></ul></ul><ul><ul><li>Other aspects of CRM include sophisticated ways of gaining customer insights in order to transform marketing efforts </li></ul></ul><ul><li>   </li></ul>
    13. 13. CRM-Segmentation is everything! <ul><ul><li>Another key objective of CRM is to identify market segments for the purpose of tactical promotions </li></ul></ul><ul><ul><li>Segment managers are responsible for promoting the product to specific segments (a degree of specialization that is not possible with small library staffs)‏ </li></ul></ul><ul><ul><li>Microtrends involve 1% of population, which represents a market worth pursuing. In high school, these are the rebels. </li></ul></ul>
    14. 14. CRM-Marketing vs. Distribution <ul><ul><li>Coke vs. Pepsi -Coca Cola has a larger market share because of its distribution channels while Pepsi spends more on advertising/marketing. </li></ul></ul><ul><ul><li>Therefore libraries must consider distribution channels as much or more than on marketing </li></ul></ul><ul><ul><li>Teachers and classrooms can be thought of as distribution channels.  </li></ul></ul><ul><ul><li>How can we get more distributors for our products? </li></ul></ul>
    15. 15. Final words on CRM and Marketing    <ul><ul><li>70% of Marketing managers say capturing customer attention is a &quot;serious problem.&quot; </li></ul></ul><ul><ul><li>Wireless and mobil communications have increased customer expectations for convenience </li></ul></ul><ul><ul><li>A customer orientation in marketing acknowledges that we can't change customers to fit what we have to offer (Kotler and Andreason)‏ </li></ul></ul><ul><ul><li>The trend towards increasing segmentation and customization is here to stay </li></ul></ul><ul><ul><li>We must do more to understand our customers </li></ul></ul>
    16. 16. Things we can do to understand and serve our customers <ul><ul><li>Polls  </li></ul></ul><ul><ul><li>Interactive Web sites (Online student reviews)‏ </li></ul></ul><ul><ul><li>Recommendation board-Instant hit in our library </li></ul></ul><ul><ul><li>Use favored means of communicating (see poll in previous slide)‏ </li></ul></ul><ul><ul><li>Old fashioned in-person relationships  </li></ul></ul><ul><ul><li>Focus groups </li></ul></ul><ul><ul><li>Student advisory boards </li></ul></ul><ul><ul><li>Marketing according to well-defined segments </li></ul></ul><ul><ul><li>Profiling users vs. Customizing for users </li></ul></ul>
    17. 17. Tips on winning over teacher customers <ul><ul><li>Use teacher-centric pitches </li></ul></ul><ul><ul><ul><li>I can save you time </li></ul></ul></ul><ul><ul><ul><li>I'll do detail work you don't have time for. </li></ul></ul></ul><ul><ul><ul><li>  I'll help with class management issues </li></ul></ul></ul><ul><ul><li>When given the opportunity, produce you best work, utilizing your strengths </li></ul></ul><ul><ul><li>Good communication </li></ul></ul><ul><ul><li>Help teachers collaborate with each other </li></ul></ul>
    18. 18. Specific methods of understanding customers <ul><li>1. Ask 2-3 simple questions to a specific group of students. (Quick focus group) </li></ul><ul><li>&quot;What additional Product or Service would you like to see the Library offer?&quot; </li></ul><ul><li>    &quot;What gets in the way of your reading more?&quot; </li></ul><ul><li>2. More detailed class surveys (online is better)‏ </li></ul><ul><li>3. Statistics and careful observation </li></ul><ul><ul><li>Interview students while using Web site (Usability study)‏ </li></ul></ul><ul><li>4. Library Event Idea Contest </li></ul>
    19. 19. Best Ideas from the audience
    20. 20. Competition: The 2nd 'C' <ul><li>Direct competition with school libraries </li></ul><ul><ul><li>Book Stores (online and brick/mortar)‏ </li></ul></ul><ul><ul><li>Search Engines </li></ul></ul><ul><ul><li>Public Libraries </li></ul></ul><ul><li>Indirect Competitors </li></ul><ul><ul><li>Video Games </li></ul></ul><ul><ul><li>Television </li></ul></ul><ul><ul><li>Internet in General </li></ul></ul><ul><ul><li>Shopping in general </li></ul></ul><ul><ul><li>Wireless devices-cell phones, Ipods, etc. </li></ul></ul>
    21. 21. First the good news! <ul><li>School Library Advantages vs. Competition </li></ul><ul><li>1.  Location, Location, Location! </li></ul><ul><li>2.  Many of students' favorite activities banned at school! </li></ul><ul><li>3.  We're free!  Many companies are now demonstrating the value of &quot;free.&quot; </li></ul>
    22. 22. Now the bad news! <ul><li>Our competitors have the following advantages: </li></ul><ul><li>1.  Huge $$ marketing campaigns led by the brightest minds in the world </li></ul><ul><li>2.  Sophisticated brands that capitalize on trends in popular culture </li></ul><ul><li>3.  Young generation seems to prefer mindless entertainment over a life of the mind </li></ul><ul><li>4.  Longer hours of operation and more available products online </li></ul><ul><li>5. Larger organizations with more specialists </li></ul>
    23. 23. Technology in Business vs. Schools <ul><li>In a US Dept of Labor Study (2002), measuring IT usage and implementation, Education was ranked 55th out of 55 sectors of the economy.  Coal miners are using technology at a higher level than US public school students. </li></ul><ul><li>In business workers are rewarded for high productivity using technology and students in public schools are punished or fined.  </li></ul><ul><li>  </li></ul><ul><li>Schools copy each other while businesses try to find competitive advantage. </li></ul>
    24. 24. Technology in Business vs. Schools (cont.)‏ <ul><li>Schools delay change for many reasons while business takes risks and pushes ahead. </li></ul><ul><li>Amazon has allowed customers to publish reviews on its Web site since 1997 and Lehman HS did not start until 2008. </li></ul>
    25. 25. What schools and librarians can do     <ul><ul><li>Raise the bar! Be the change! </li></ul></ul><ul><ul><li>Liberalize our policies over tech use in the library.  Encourage admin to do the same for school. </li></ul></ul><ul><ul><li>Learn every Friday or when you're not busy and think about doing something nobody else is doing. </li></ul></ul><ul><ul><li>Teach what you learn to others. </li></ul></ul><ul><ul><li>Network and learn from private sector &quot;geeks.&quot;  </li></ul></ul><ul><ul><li>Outsource technology if technology department isn't helpful . </li></ul></ul><ul><ul><li>Demand more or our software vendors, especially library automation. </li></ul></ul>
    26. 26. Features we should consider for our Library Automation software <ul><ul><li>Text message or email subscriptions for new arrivals in specific series, authors, genres, etc. </li></ul></ul><ul><ul><li>Assistance with collection development that take into account student ratings and circulation </li></ul></ul><ul><ul><li>Social networks and ratings that extend beyond the individual schools to connect like-minded readers </li></ul></ul><ul><ul><li>Monitor for &quot;buzz&quot; to give us information regarding emerging trends and hot topics </li></ul></ul><ul><ul><li>More personalization and customization options </li></ul></ul>
    27. 27. Some Ideas for making Library Web resources more accessible <ul><ul><li>  Easy to remember Web address, which is an aspect of your brand </li></ul></ul><ul><ul><li>Create a Google Gadget and encourage students to put on their personal homepage </li></ul></ul><ul><ul><li>Instead of links to databases, put a search box on the library page </li></ul></ul><ul><ul><li>Minimize barriers such as password protection </li></ul></ul><ul><ul><ul><li>I P authentication for on campus use </li></ul></ul></ul><ul><ul><ul><li>Referer URL authentication </li></ul></ul></ul><ul><ul><ul><li>Cookie authentication for returning users </li></ul></ul></ul><ul><ul><li>Federated search products </li></ul></ul><ul><ul><li>  </li></ul></ul>
    28. 28. What else can we do about competition? <ul><ul><li>1. Leverage our advantage of location and host events. </li></ul></ul><ul><ul><li>2. Consider more liberal policies on gaming, cell phones, etc. </li></ul></ul><ul><ul><li>3. Branding for library Web site-Get a domain name!   </li></ul></ul><ul><ul><li>www.lobolib.org sure beats www.hayscisd.net/schools/lehmanhs/library </li></ul></ul><ul><li>4.  Meet students where they are: Facebook, etc </li></ul><ul><li>5.  More on 24/7 on-demand service in streaming video,  downloadable E and Audio books, more online chat help  </li></ul><ul><li>6.  Provide service with a smile </li></ul><ul><li>7.  Benchmarking-Learn from the competition! </li></ul>
    29. 29. Benchmarks: Striving to be like our competitors or Best-of-Breed leaders <ul><li>1.  I want my library to recommend books and remind customers the way Amazon.com does. </li></ul><ul><li>2.  I want my online library to be as easy to check out from as it is to buy car insurance from Progressive.com </li></ul><ul><li>3.   </li></ul><ul><li>4. </li></ul><ul><li>5.  </li></ul>
    30. 30. Change: The Last 'C' Change is a Constant  <ul><li>Business is raising expectations for us whether we like it or not! </li></ul><ul><li>&quot;As the service bar has been raised by the private sector, citizens are demanding better treatment and interaction with government&quot;    -Sean Shine in the Ultimate CRM Handbook </li></ul><ul><li>  </li></ul><ul><li>My belief is that schools should be given a grace period of 2 years to adopt a successful technology practice that the private sector is using. </li></ul><ul><li>  </li></ul><ul><li>Librarians should embrace the ethos of &quot;Knowledge Workers.&quot;   Learn all the time! </li></ul>
    31. 31. The school library as a retail store <ul><li>What some school libraries are doing to compete with book stores </li></ul><ul><ul><li>  Relaxed and welcoming environment   </li></ul></ul><ul><ul><li>Comfortable furniture and surroundings </li></ul></ul><ul><ul><li>Selling coffee and other food/drink items </li></ul></ul><ul><ul><li>Free internet, but that darn filter! </li></ul></ul><ul><ul><li>Book store style shelving and displays.  </li></ul></ul><ul><li>   </li></ul>
    32. 32. Some more radical ideas from retail <ul><li>Space is at a premium! We have a high traffic location! </li></ul><ul><li>1.  If no one is using the reference area, make it into a coffee shop! </li></ul><ul><li>2.  Our shelf space is worth something!  Think like a grocery store. </li></ul><ul><li>-Don't buy it and put it out if it has no audience! -Collection development should favor popularity -Maybe publishers should give us incentives to place their books in prominent positions! </li></ul><ul><li>-Place near checkout for &quot;impulse&quot; purchases </li></ul>
    33. 33. A few words about social media marketing <ul><ul><li>Begin by asking tough questions </li></ul></ul><ul><ul><li>  Know your audience </li></ul></ul><ul><ul><li>Tell your story effectively </li></ul></ul><ul><ul><li>Prepare for negativity </li></ul></ul><ul><ul><li>  Measure success </li></ul></ul><ul><ul><li>Know who's is doing what job </li></ul></ul><ul><ul><li>Have a roadmap, but be prepared to change tactics or strategy </li></ul></ul><ul><ul><li>Engage in conversation </li></ul></ul><ul><ul><li>Monitor your brand   </li></ul></ul><ul><ul><li>Optimize off-line and online strategy </li></ul></ul><ul><li>http://onehalfamazing.com/social-media/5-must-haves-for-developing-corporate-social-strategy-social-camp-memphis-edition/ </li></ul>
    34. 34. Ideas for libraries on Facebook <ul><li>  </li></ul><ul><li>Create fan page for library and send messages to fans. </li></ul><ul><li>Post videos to fan page </li></ul>
    35. 35. Marketing: the 6 P Model <ul><ul><li>Product (or Product Mix)‏ </li></ul></ul><ul><ul><li>Price(We can't get a pass on this!)‏ </li></ul></ul><ul><ul><li>Packaging (How do you present product to world)‏ </li></ul></ul><ul><ul><li>Promotion (Advertising materials)‏ </li></ul></ul><ul><ul><li>Place (Distribution channel)‏ </li></ul></ul><ul><ul><li>People (How do you touch them and define target market)  </li></ul></ul>
    36. 36. Product <ul><li>Must pick a product that has value to customers </li></ul><ul><li>In libraries, product could be an author, a genre, a series, an electronic product or a service </li></ul>
    37. 37. Price <ul><li>A popular book may be free in library but worth paying for if the wait is too long </li></ul><ul><li>Reading a library book may be free, but there could be opportunity costs </li></ul><ul><li>Price may be literal if a fund raising event </li></ul>
    38. 38. Packaging <ul><li>Any thing done to make product more attractive </li></ul><ul><li>Book covers are certainly part of packaging </li></ul><ul><li>Attention grabbing aspect of book display </li></ul>
    39. 39. Promotion <ul><li>Materials used to advertise product </li></ul><ul><li>Booktalks </li></ul><ul><li>Media: Podcasts, video commercials, etc </li></ul><ul><li>Incentives </li></ul><ul><li>Giveaways </li></ul>
    40. 40. Place <ul><li>Where product is promoted </li></ul><ul><li>Physical space such as library, classroom or hallway </li></ul><ul><li>School announcements </li></ul><ul><li>Facebook, Myspace, or YouTube </li></ul><ul><li>Library Web page </li></ul><ul><li>Blog </li></ul><ul><li>Sporting event </li></ul>
    41. 41. People: Who are the target customers? How will campaign touch them? <ul><ul><li>Market  books or library programs to a high school market segment: </li></ul></ul><ul><ul><ul><ul><li>Athletes, theater types, honor students, band and music kids, comic books guys (and some girls), Internal dropouts (present in body, but not in mind), skaters, administrators, teachers and other staff </li></ul></ul></ul></ul><ul><ul><li>What aspects of the product/service, price, packaging, and promotion will appeal to them? </li></ul></ul><ul><ul><li>  </li></ul></ul>
    42. 42. High School Marketing Collaborative <ul><ul><li>Will provide a central location for quality 6P Marketing Programs that can be used in any high school </li></ul></ul><ul><ul><li>Marketing includes books, databases, or any library product or service </li></ul></ul><ul><ul><li>An opportunity for librarians to focus on their greatest strengths and share them with others </li></ul></ul><ul><ul><li>“ Wisdom of Crowd” in Wiki will refine ideas. </li></ul></ul><ul><ul><li>It all starts now! </li></ul></ul>
    43. 43. Bibliography     <ul><li>  Andreasen, Alan, and Philip Kotler. Strategic Marketing for Non-Profit Organizations (7th Edition) . Alexandria, VA: Prentice Hall, 2007. </li></ul><ul><li>Champy, James, and Michael Hammer. Reengineering the Corporation: A Manifesto for Business Revolution . New York: Harperbusiness, 2001. </li></ul><ul><li>Drucker, Peter F.. Management Challenges for the 21st Century . London: Collins, 2001. </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
    44. 44. Bibliography-Continued <ul><li>Freeland, John. The Ultimate CRM Handbook : Strategies and Concepts for Building Enduring Customer Loyalty and Profitability . New York: McGraw-Hill, 2002. </li></ul><ul><li>  </li></ul><ul><li>Peters, Thomas J., and Robert H. Waterman. In Search of Excellence: Lessons from America's Best-Run Companies (Collins Business Essentials) . London: Collins, 2006.  </li></ul><ul><li>  </li></ul>
    45. 45. Acknowledgments     <ul><li>Thank you to Professor Irene Owens, formerly of the University of Texas, for sharing her enthusiasm for the ideas of Peter Drucker and for management theory in general. </li></ul><ul><li>Thank you to Debra Suing and Irene Krasnoff for sharing their knowledge and experiences in the business world and serving as sounding boards for my ideas. </li></ul>

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