1. Creating an ROI Dashboard A Practical Approach to Measuring & Communicating Organizational Impact Stacey Bowers Marketing and Account Development Manager, Channel Marketing

2. 2 How Springer got involved? 1.Your interests are OUR interests? 2.Springer LAB was formed to get a two-way communication 3.Outsell White Paper was commissioned Establishing Value and ROI: Investing in STM e-journals and e-books 4.Suggested Steps to Create an ROI Dashboard…

3. 3 Contributing Value to the Organization 1. In the current economic climate, Libraries need to be recognized for their contributions to an organization. 2. Libraries need to align with and contribute to Enterprise goals. 3. Communication of ROI is critically important as a validation of Library services.

4. 4 Measuring ROI 1. Assessing and demonstrating the value of information has become both more difficult and more necessary 2. Libraries are struggling to measure ROI Increased choice means more complexity What is the value of a digital resource if information is free? 3. Usage is often a proxy for value but Libraries understand the need to dig deeper 4. Softer metrics such as time saved or project streamlining are difficult to quantify, but critical to expressing real value

5. Who is involved in the budget and content decision making? Courtesy of FreePint www.freepint.comwww.freepint.com

6. Does this look familiar?

7. 7 Communicating Value and ROI 1. Simple, effective tools for communicating Library ROI and contributions are needed 2. An ROI dashboard provides an ongoing summary of a Libraries contribution to organizational objectives 3. The dashboard should tell the unfolding story of a librarys contribution to organizational goals and success

8. 8 Steps to develop an effective ROI dashboard Step 1: Align with Organizational Objectives Step 2: Identify Key Constituencies Step 3: Conduct Internal Research Step 4: Determine Desired Measurements Step 5: Establish ROI Methodology Step 6: Determine Value Step 7: Create ROI Dashboard Step 8: Develop Communication Plan

9. Identify key organizational strategies and objectives Ensure that services delivered align with organizational goals Identification of key library users and groups within the organization is critical to ensuring proper alignment of services ROI should not simply justify costs, but actively demonstrate contributions to the organizations success Step 1: Align with Organizational Objectives Align Services with Strategy Map current and potential Users

10. 10 Segment knowledge workers and groups Examine Group, Department and Enterprise perspectives – Various constituents have differing views on the role and value of the library – Executives and library stakeholders will see key library functions differently than end users Understand ROI measurements relevance to various constituencies For all constituencies, ROI should focus on improvement across three key metrics: Step 2: Identify Key Constituencies MoneyTimeQuality Source: Establishing the return on investment for information and knowledge services: A. Hendriks and Wooler Business Information Review.2006; 23: 13-25

11. 11 Step 3: Conduct Internal Research End-user surveys Focus groups Executive interviews Informal feedback Usage data Perform internal research to determine constituent perspectives, needs and objectives Topics to explore: – Enterprise or group objectives & library support for these objectives – Views on the value of information – ROI examples from other areas of the organization – Behaviors and use of eContent (End-Users)

12. SpringerLink Usage Statistics : Corporation XYZ

13. 13 Contents Samples of usage data that can help you measure ROI in various ways. Help you re-appropriate collections and or budgets.

14. 14 Usage Dashboard Usage MetricsJan to Oct 2009 Visits19,287 Page Views44,510 Journals Page Views31,967 eBooks Page Views5,004 Other Page Views (Home, Navigation etc.)7,539 Full-Text Requests7,447 Journals Articles (COUNTER Journal Report 1)5,769 eBooks Sections (COUNTER Book Report 2)1,678 License denials5,170 Journals Articles4,553 eBooks Sections617 Pay-per-View Requests5 (Source: MetaPress, Coremetrics)

15. 15 Page Views by IP Addresses (Source: Coremetrics) IP Address Page Views Jan to Oct 2009 XXX.XX.210.1518,107 XXX.XX.2.15813,344 XXX.XX.212.1608,948 XXX.XX.11.161,706 XXX.XX.3.301,355 XXX.XX.188.155211 XXX.XX.210.16163 XXX.XX.189.262 XXX.XX.88.3040 XXX.XX.11.1530 XXX.XX.161.19323 XXX.XX.161.16923 XXX.XX.40.6023 XXX.XX.189.9722 XXX.XX.188.24221 Other432 Total44,510

16. 16 Full-Text Article Requests (COUNTER Journal Report 1) SpringerLink Full-Text Article Requests 2007-10 (Source: MetaPress )

17. 17 Full-Text Article Requests by Content Age (Source: Coremetrics) Full-Text Article Requests by Content Age: Jan to Oct 2009

18. 18 Full-Text Section Requests by Subject Collections (Source: Coremetrics) Full-Text Section Requests by Subject Collections: Jan to Oct 2009

19. 19 Article Denials by Subject Collections (Source: Coremetrics) Article Denials by Subject Collections: Jan to Oct 2009

20. 20 Article Denials by Content Age (Source: Coremetrics) Article Denials by Content Age: Jan to Oct 2009

21. 21 Quote from Outsells Establishing Value and ROI report…. (Source: Coremetrics) All of these metrics are fine and dandy, but they dont really answer the question…libraries have been trying to answer…for years……Impact to me is quantifying the impact on the bottom line. (Lab Manager: Technical Library Information Research, Research and Engineering Lab.)

22. 22 Determining ROI is complicated Formula will be unique for every organization ROI is a story that can be told combining quantitative and qualitative data to establish baseline assumptions. Establish methodology Determine what Research (from step 3) is relevant to developing your ROI story. Establish Assumptions Cost of alternatives vs library costs Cost of time saved = cost of wages Opportunity costs Step 5: Establish ROI Methodology

23. 23 Establish a dollar value for library services and resources Four basic steps are needed to find a bottom line for library services and resources. 1. Find cost data for operating information services. 2. Collect user estimates of the value of beneficial library services. 3. Record narrative accounts of library impact. 4. Determine cost- benefit ratios to provide a return on investment (ROI) figure.. Source: Barbara Weiner "Marketing: Making a Case for Your Library" 3 Sources, V18(5), October/November 2000, pages 3-5 Step 6: Determine Value

24. 24 Case Study: Hazelden Library and Information Resources Center Patron Needs Met: 92.2%. From Survey Time saved for other employees each year: $106,560 Time saved x estimated hourly wage Annual worth of reference service: $78,300 Number of transactions x time to respond x cost of independent service Library collection worth: $52,544 Cost to maintain content. ROI 4:3 Ratio of Worth of Service vs Library Collection. Source: Barbara Weiner "Marketing: Making a Case for Your Library" 3 Sources, V18(5), October/November 2000, pages 3-5 This is not a scientifically rigid study. However, this dollar value exercise presents a reasonable estimate of the value that my library provides to its organization. Step 6: Determine Value

25. 25 What to include: Presentation: – A visual system – green, red and yellow key performance indicators – Icons – Key Metrics in percentage What to demonstrate: – Value, i.e. penetration and use – Utilization, i.e. use, citations, authors, decisions supported – Time Saved Step 7: Create Your Dashboard

26. 26 Step 7: Create Your Dashboard MetricValueHealth Today Trend Over 1 Year Needs Met 92% Time Saved $106,560 Value of Service $78,300 Cost of Operation $52,544 ROI 4:3 Develop simple, clear structure that effectively communicates ROI Results should be apparent at a glance Dashboard should tell a story – include past history and/or trends

27. 27 Step 8: Develop Communication Plan Establishing an effective communication plan is vitally important Meet with management to review and adjust communications Ensure that all relevant constituents are covered – Over communicate – do not assume your audiences already have this information or will not benefit from receiving it

28. Questions? Contact me for more info: stacey.bowers@springer.com