Determining & Communicating Value Joe Matthews Internet Librarian 2006.

Determining & Communicating Value

Joe MatthewsInternet Librarian 2006

Adding Value

• Ease of use• Noise reduction• Quality• Adaptability• Time savings• Cost savings

Why Demonstrate Value?

• Show the library’s contribution to meeting the organization’s goals and objectives

• Show accountability

• Advocacy and marketing tool

• Be proactive

To Show Your Value

• Address the priorities of the whole organization

• Demonstrate how the library furthers the goals of the organization

• Use their jargon

Evaluation Model

Resources Capability Utilization Impact or Effect

Input Measures

Process Measures

Output Measures

Outcomes

Individual Organization or

Community

To demonstrate value we

must focus on

OUTCOMES

Answer the question:

“Are we doing the right things?”

• Outcome – the consequence, practical result, or effect of an event or activity

• Impact – the effect of one person, thing, action, or service on another

• Value – the importance of something, the perception of actual or potential benefit

• Benefit – the helpful or useful effect that a thing or service has

Taxonomy of Results

• COGNITIVE results• AFFECTIVE results• ACCOMPLISHMENTS

in relation to tasks• EXPECTATIONS met• TIME aspects• MONEY estimates

Academic Libraries

• A considerable proportion of all students borrow no materials from the library

• A small proportion of students are responsible for a majority of borrowed materials

• Assigned readings and course-related readings (reserves) accounts for the majority of circulation

• The amount of borrowing varies by discipline or field of study

Academic Libraries

• The studies do not control for student abilities and typically rely on a single measure of use and success

• Studies that rely on self-evaluation of success may not be an accurate assessment of library skills

• The correlation between library use and academic achievement is weak at best (and, in most cases, not statistically significant).

Academic Library Outcomes

Does the use of library resources & services:

• Assist students achieve academic success?

• Assist faculty improve their teaching

• Assist scientists in their research?

School Libraries

Schools with stronger school

library programs average

10-20% higher test scores

Strong School Libraries

• Have more professional & support staff

• Provide more computers• Spend more on licensed

databases• Participate more in

resource sharing

Strong School Libraries

• Visited more by students• Have flexible scheduling• More librarian/teacher

collaboration• Current collections which

are used more heavily

Message for School Librarians

Start talking to other educators

and policy makers

(the principal) on their terms

Public Libraries

• Traditional functions – reading & literacy, providing access to information & leisure reading, and education

• Social & caring roles – personal development, community empowerment & learning, local image, and social cohesion

Public Libraries

• Equity – providing services and technologies to bridge the inequalities between groups within the community

• Economic impact – business & employment information, training opportunities, “multiplier effect” on local economy

Public Library Social Benefits

• Use of leisure time• Informed personal decisions• Literacy• Support of Education

– Preschoolers & young children– Teenagers– Adults

• Local History & Genealogy

Public Library Social Benefits

• Access to technology• Technology training• Library as Place• Community Awareness• Support for a democratic

society

Public Library Economic Benefits

For the Individual• Savings from sharing

rather than buying materials

• Information for personal investors

• Technology access• Health information• Employment information

Public Library Economic Benefits

For Local Business

• Business & Career Information

• Economic Development

Public Library Economic Benefits

For the Local Community

• Library as employer• Purchase of goods &

services• Library as destination• Attracting commercial &

industrial development

Public Library Economic Benefits

Cost-Benefit Analysis

Contingent valuation methodology“What would you pay if the service is not available?”Willingness to accept – tax cut to close the library

St. Louis Public Library4:1 to 12:1

Public Library Economic Benefits

Cost-Benefit Analysis

• Carnegie Library of Pittsburgh– 2+ million visitors– 3:1 ratio

• Phoenix Public Library– 10:1 ratio

Public Library Economic Benefits

Cost-Benefit Analysis

• State of Florida– 68.3 million visitors– 6.54:1 ratio

• State of South Carolina– 4.48:1 ratio

Public Library Economic Benefits

Service Price Amount of Use

Value

Children's books

$10 100,000 $1,000,000

Adult books

$20 100,000 $2,000,000

DVD’s $15 150,000 $2,225,000

Special Libraries

Transform the perception of

the library into a recognized

organizational asset that

affects the bottom line!

Special Library Benefits

Accomplishments

• Hospitals Quinn & Rogers, Marshall

– Reduced length of stay– Avoided surgery– Avoided additional tests– Changed advice/diagnosis

• Banking Marshall

– Better decisions, reduced risk– Saved time

Special Library Benefits

Accomplishments

• Government Marshall

– Meet deadlines– Improved plans & policies

• All organizations – improved productivity Koenig

– Greater openness to information– Greater use of information

services

Special Library Benefits

• Saving Time

– Substitution of professionals time– Time spent reading Griffiths & King

– Current awareness bulletin9:1 ratio Harris & Marshall

– Saved 14 hours per project Outsell 2001 survey

– Reduced product development time

Special Library Benefits

Cost Aspects

• Relative Value ApproachUse alternate source in lieu of library $5,010 vs. $1,700 per professional Griffiths & King

• Consequential Value Approach– Reduce costs– Increase revenues

Special Library Benefits

• Consequential Value Approach

– Saved $2,500 per project– Increased revenues per sale

of $85,000– Identified new sales valued at

$131,000

Outsell 2001 survey

Special Library Benefits

Return on Investment

• Benefit-cost ratios range from 16:1 to 3:1Griffiths & King, Tenopir & King, Portugal

Action Plan

• Know your audience

• Determine your value

• Communicate your value by focusing on benefits

• Use their jargon!

Resources

Joseph R. Matthews. The Bottom Line. Determining & Communicating the Value of the Special Library. Libraries Unlimited, 2002.

Joseph R. Matthews. Measuring for Results: The Dimensions of Public Library Effectiveness. Libraries Unlimited, 2004.

Joseph R. Matthews. Institutional and Library Assessment In Higher Education. Libraries Unlimited, forthcoming.