1. Value of Library Services A presentation to the Joint Chapter Professional Development Day by Joe Matthews

2. Overview 4 Outward FocusEffectiveness Are we doing the right thing? The focus is on the library & its impact on its parent organization 4 Inward FocusEfficiency Are we doing things right?

3. Pricing Econometric Activity-based Costing Strategic approaches, e.g., Parker InfoMap e.g., Burk & Horton Priority & Performance Evaluation, e.g., Broadbent Cost-Benefit Analysis Decision analysis Sector Organization System/ Service Individual Situation specific Situation Generic The value of information

4. Cost/Benefit Analysis 4 Maximize benefits for a given cost 4 Minimize costs for a given level of benefits 4 Maximize the ratio of benefits over costs 4 Maximize the net benefits (Present value of benefits over present value of costs) 4 Maximize the internal rate of return (ROI)

5. Favorite Definition of a Library Catalog

6. Librarys Catalog 4 The value of a library is found in its collection & services provided by staff 4 The librarys catalog is a finding aid to information resources located within the library & elsewhere 4 The bibliographic record is the surrogate of the real thing

7. Information Package Each book or other information resource, e.g., audio or videotape, map, manuscript, microform, etc., contained within a librarys collection or an electronic resource located outside the library

8. How Add Value to Information? 4 Organizing –Grouping –Classifying –Relating –Formatting –Displaying 4 Analyzing –Separating –Evaluating –Validating –Comparing –Interpreting –Synthesizing

9. Adding Value (Continued) 4 Judgmental –Presenting Options –Presenting advantages & disadvantages

10. Attributes of a MARC record 4 Ease of Use 4 Noise Reduction 4 Quality Provides a structure Authority control Consistency checks

11. Attributes of a MARC record 4 Adaptability 4 Time Savings 4 Cost Savings Flexibility in data display Import MARC records Variety of sources

12. Value of a Librarys Collection 4 Cost of $50 to purchase and catalog each title times 4 Number of titles in collection, e.g., 50,000 = 4 Value of the librarys collection or $2,500,000

13. Value of a Librarys Catalog Total cost of cataloging = [(Cost of shared cataloging * % shared) + staff costs for shared cataloging] + Cost of original cataloging (% needing original cat. * staff costs to do original cat.)

14. Example Adding 1,100 titles [$1.75 *(95.5% * 1,100) or $1,838 + ($20/title * 1,050) or $21,000 = $22,838 + original cataloging (50 titles * $50 per title) or $2,500 Total Cost of Cataloging = $25,338 or $23.03 per title record

15. Collection ROI 4 Collection value = $2,500,000 4 Annual circulation = 150,000 ROI Analysis (150,000 * $23.03/record) / $2,500,000 or Collection ROI = 14 cents per circulation If circ. goes up, Collection ROI also goes up

16. Enhanced MARC Records 4 Cost per record = $1, 40% match 4 10% increase in collection utilization 4 50,000 titles * 40% = 20,000 titles ROI Analysis $2,500,000 collection value * 10% = $250,000 $250,000 / 20,000 enhanced records value = $12.50 per enhanced MARC record

17. Authority Records 4 50,000 authority records 4 10% increase in collection utilization ROI Analysis $2,500,000 collection value * 10% or $250,000 / 50,000 authority records or value = $5.00 per record

18. Additional Indexes 4 Collection value = $2,500,000 4 10% increase in collection utilization ROI Analysis $2,500,000 * 10% or Value of additional index = $250,000

19. Value of Location & Status Information for a Firm 4 Value for a professional = $120/hour 4 Time spent making a trip to the library = 15 min. Online access means reduced trips # trips per day reduced x value of prof. = value of increased productive time of prof. 50 trips/day x 15 min x $2/min = $1,500

20. Location & Status Information 4 Save $1,500 / day or $390,000 / year ROI Analysis $390,000 / 50,000 volumes or value of location & status information = $7.80 per volume

21. Location & Status Information 4 Annual circulation of 50,000 items 4 Manual circ. system experiences a 3% loss or 1,500 items per year 4 Automated circ. System has 1/2 of 1% losses or 250 items per year ROI Analysis 1,250 items not lost x $50 = $62,500 $62,500/50,000 = $1.25 per item

22. Value for an Individual The librarys bibliographic records typically have little direct value for an individual. Difficult to assign value for these records even if used by an individual.

23. Improving the Catalog 4 Clean up your database 4 Use authority control records 4 Review frequency of subject headings 4 Add enhanced MARC records

24. Dirty Database Test Febuary Guatamala Misssion Goverment Fransisco Grammer Recieve Wensday Seperate Conditons Source: Jeffrey Beall, American Libraries

25. E NHANCED MARC Records Source: Peis & Fernandez-Molina, ITAL, Sept, 1998

26. Communication Measuring the value of information or the value of library services is a hollow activity unless effective communication with decision makers is taking place