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.

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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.

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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%

18. Utility of ROI Studies Improved credibility Complements other use measures Complements qualitative information

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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.

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