Demonstrating Value of Libraries and Information Professionals Amelia Kassel MarketingBase USA [email protected].

Demonstrating Value of Libraries and Information Professionals

Amelia Kassel

MarketingBase USA

[email protected]

©Amelia Kassel – www.MarketingBase.com 2

Introduction

Transform libraries into recognized corporate assets that affect the bottom line to:Fund librariesExpand and offer new services


Libraries Are a Business Within a Business

Must become involved withStrategic planning Developing proactive measures that prove

value • Track contributions

• Communicate value to management and stakeholders

– Meetings

– Marketing


Methods for Demonstrating Value

ROI measurements

Surveys that show customer satisfaction and loyalty Gather stories and testimonials even if anecdotal in

nature

Benchmarks against other information centers Outsell, Inc.


Outsell, Inc. Survey of 4,700 Respondents

When corporate end users got beneficial data from their information centers, they either: Boosted revenues by an average of $801,585 Cut costs by an average of $2,549 or Saved an average of 12 hours Computerworld ROI, May 14, 2001 www.computerworld.com/roi/may/0,3277,STO60308,00.html

The Value Of Libraries: Justifying Corporate Information Centers In The Year Of Accountability, Information Briefing, Outsell, Inc. Volume 4 Number 10, April 23, 2001


ROI - Definition

Estimate of money made or saved by investing in something – aka financial payback

To calculate ROI, compare cost data with financial benefits


Importance of ROI

Executives want to see ROI benefits

Will eliminate units that don’t contribute in a tangible way

Keeps libraries in business and supports growth


ROI Methods

Look at the cost of the services you perform Subtract costs from measurements that you must begin to trackGather and track data by Keeping statistics that can be measuredConducting user surveys Interviewing individual users


ROI Hypothetical ExampleOutsell, Inc.

Library budget is $5 million and gives the company $7.5 million in return

Ten library employees generated $2.5 million profit related to 500 projects


Library Users Say…

The library saved them an average of 14 hours per project = $168,000Saved an average of $2,500 in direct costs per project = $250,000On 50 projects, the library found information that led to an average sale or increased sale of $85,000 = $4,250,000Intranet site content (paid by the library) resulted in 14 known new sales at an average value of $131,000 = $1,834,000


The Library Also…

Reduced the cost of subscriptions by $4,000Consolidated a company-wide subscription deal, saving $7,500Consulted in various divisions about information management (25 hours), saving the company almost $7,000 if it had gone to outside consultants for the same adviceFacilitated three buying consortia for a total net savings of over $20,000


ROI Hypothetical ExampleJan Sykes

A high-tech company decides not to acquire a company valued at $260 million based on information uncovered in a background/due diligence search by the librarianCost for the research was several hundred dollarsThe impact to the company was huge!


User Surveys

Conduct user surveys to gather data for accurate measurements of ROI

Sample both users and non-users


Questions Thinking of Instances of Using Information Research in the Past 12 Months

In approximately what percent of those instances did using information research help save you time? And on average, in each case, how much time did you save (in hours)?

Approximately what percent of the time did using the Information Center help you make money (for example, by providing information that led to launching a new product/service or closing a sale)? And on average, each time this was the result, how much money did you make?


Questions Thinking of Instances of Using Information Research in the Past 12 Months - Cont

Approximately what percent of the time did using the Information Center cost you time due to spending time on obtaining information with little or no fruitful results? And on average, each time this was the result, how much time did the information cost you, in hours?

Approximately what percent of the time did using the Information Center cost you money due to inaccurate or inappropriate information? And on average, each time this was the result, how much money did the information cost you?


To Demonstrate ROI, Show Financial Benefits

Time you save users

Savings in consolidated buying

Savings in direct costs

Other kinds of returns besides monetary A nonprofit may need to show good will generated A manufacturing company may prefer to judge the

library on its contributions to quality improvements


Metrics

Deciding what to measure is related to interests of the corporation Identify measurements important to the

organizationThis differs from company to companyUse input from library staff


Understanding Corporate Culture and Corporate Goals

Time saved - expressed in terms of hours and dollars

Increase in sales

Quicker response to competitive threats

Return on shareholder value

Shortened product cycle from conception to market


Gather Information About Your Company From

Executives’ speechesPress releasesWhat executives tell the analysts covering your companyStrategic plansInternal communicationsInteraction with other departments and with thought leadersPerformance objectivesAnnual Reports


Annual Reports

Annual reports and other internal materials are sources for learning more about your company's goals and requirements

Regularly review the glossy annual report, proxy statements, and other public filings www.sec.gov or www.edgaronline.com For U.S. companies, use 8-Ks, 10-Qs, and 10-Ks For foreign companies who files on U.S. exchanges,

view 20-Fs


Annual Reports - Cont

Learn to read financial statements and look for ways to provide information or knowledge products and services that are integral and valuable to your organization

Look forPotential opportunities Threats


Library Staff Meetings or Focus Groups

Enumerate benefits that the information center brings to the corporation

Decide how to measure those benefits

Identify target markets

Review needs assessments to decide what services should be retained, canceled, or added

Brainstorm areas to target for cost savings


Information Center ResearchStrategic Roles

Conducts market analyses

Identifies potential marketing strategies

Finds ad campaigns launched by competitors

Provides information used in market positioning

Conducts intellectual property research encompassing patents, trademarks, or licensing


Information Center ResearchStrategic Roles - Cont

During M&A activity, due diligence research may uncover financial or fraudulent activities Helps managers engage in savvy negotiation or deal

making Ultimately, saves a company millions of dollars


Self-Evaluation New Competencies, Skills, Services

Business and competitive intelligence

Market research

Analysis and writing Value-Added Deliverables: Rungs on the Info Pros

Ladder to Success, Searcher, November/December 2002 - www.infotoday.com/searcher/nov02/kassel.htm

Consulting/advising about resources and techniques


Self-EvaluationNew Competencies, Skills, Services - Cont

Web research skills

Internet teaching/training

Intranet development and management


New Job Titles

Jobs are quite different from in the past and are more demanding

See Job Title Generator for Library and Information Science Professionals www.lis.uiuc.edu/~mach/jobtitle.htm


New Job Titles - Cont

Knowledge Manager

Corporate Intelligence Officer

Consultant

Global Content Manager

Intranet Manager

Taxonomy Specialist

Research Analyst

Information Specialist


Alternate Names for Libraries

Many librarians believe that they can prove their value by changing their names

Looking at the concept of branding and identity, there may be more to a name than meets the eye


Alternate Names for Libraries - Cont

Resource CenterBusiness Information CenterKnowledge and Research ServicesMarket Research CenterCompetitive Intelligence CenterVirtual LibraryKnowledge CenterDigital LibraryResearch Group


Tips for Proactive Communication

Develop relationships with company influencers, decision makers, and strategic planners Create time to network and learn as much about the organization as possible Who are the winners? Focus on them and build relationships Cultivate relationships with administrative

assistants who know what's going on before anyone else


Tips for Proactive Communication - Cont

Call or e-mail clients regularly

Make visits to offices, sites, and the cafeteria Go to every function

Develop new employee orientations, letters of welcome, and packets explaining the great resources and services you offer


Tips for Proactive Communication - Cont

Monitor areas of research you can provide without being asked or track competitors Give potential users and clients what they didn't know they

needed

Meet M&A information needs for due diligence, company/competitor backgrounds, financial services, marketing and public relations, and human relations

Create time for planning new products and services

Provide an organized plan with specific goals


Tips for Proactive Communication - ContUse soft data, such as testimonials, to express the library's value

Include the hard data from measurements of interest to you organization

Develop reports based on company priorities


ConclusionPractice Information Professionalism by

1. Redirecting expertise, resources, money, and people to meet business goals of the company

2. Collecting, documenting, and analyzing the right data and assessing implications

3. Communicating what you are doing to management and stakeholders!


Additional Sources

Amelia KasselPractical Tips to Help You Prove Your

Value • Marketing Library Services (MLS), May 2002

• www.infotoday.com/mls/may02/kassel.htm

How to Write a Marketing Plan• Marketing Library Services, (MLS) June 1999

• www.infotoday.com/mls/jun99/how-to.htm


Additional SourcesSLA.org Presentations

1. Return on the Information Investment

by Jan Sykeswww.sla.org/content/Events/distance/virtsem2002/jun02virtsem.cfm

2. Grooming Passionate Library Evangelists:

Communicating the Value of Information Services

by Chris Olson (www.chrisolson.com)www.sla.org/content/Events/distance/virtsem2002/apr02virtsem.cfm

3. I Told You I'm Worth It: ROI and the Information

Professional www.sla.org/content/learn/learnwhere/portals/ROI/index.cfm

Demonstrating Value of Libraries and Information Professionals

Amelia Kassel

MarketingBase

[email protected]

Demonstrating Value of Libraries and Information Professionals Amelia Kassel MarketingBase USA [email protected].

Documents

information cost

information management

information briefing

inappropriate information

average value

growth slide

corporate information

information research