Creating an ROI Dashboard

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

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

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

4. Measuring ROI 4 • Assessing and demonstrating the value of information has become both more difficult and more necessary • Libraries are struggling to measure ROI • Increased choice means more complexity • What is the value of a digital resource if information is free? • Usage is often a proxy for value but Libraries understand the need to dig deeper • 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.com

6. Does this look familiar?

7. Communicating Value and ROI 7 • Simple, effective tools for communicating Library ROI and contributions are needed • An ROI dashboard provides an ongoing summary of a Libraries contribution to organizational objectives • The dashboard should tell the unfolding story of a library’s 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. Align Services with Strategy Step 1: Align with Organizational Objectives Map current and potential Users • 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 organization’s success

10. Money Time Quality Step 2: Identify Key Constituencies 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: Source: Establishing the return on investment for information and knowledge services: A. Hendriks and Wooler Business Information Review.2006; 23: 13-25

11. End-user surveys Focus groups Executive interviews Informal feedback Usage data Step 3: Conduct Internal Research 11 • 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. Contents 13 • Samples of usage data that can help you measure ROI in various ways. • Help you re-appropriate collections and or budgets.

14. Usage Dashboard 14 (Source: MetaPress, Coremetrics)

15. Page Views by IP Addresses 15 (Source: Coremetrics)

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

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

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

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

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

21. Quote from Outsell’s Establishing Value and ROI report…. 21 “All of these metrics are fine and dandy, but they don’t 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.) (Source: Coremetrics)

22. Step 5: Establish ROI Methodology 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

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

24. 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 Case Study: Hazelden Library and Information Resources Center Step 6: Determine Value 24 “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. “ . Source: Barbara Weiner "Marketing: Making a Case for Your Library" 3 Sources, V18(5), October/November 2000, pages 3-5

25. What to include: Step 7: Create Your Dashboard 25 • 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

26. Step 7: Create Your Dashboard 26 • 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. Step 8: Develop Communication Plan 27 • 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