Outsourcing An Webcast

1. OutsourcingAn Webcast Monday, October 15, 2007 12:00 noon to 1:00 p.m. Presenters: Nancy Johnson and Mark Smith nljohnson@rceo.org and marks@lssi.com Infopeople webcasts are supported by the U.S. Institute of Museum and Library Services under the provisions of the Library Services and Technology Act, administered in California by the State Librarian.

2. Agenda • Definitions and overview • History of Riverside County Library System • Outsourcing Fact and Fiction • How Outsourcing Works

3. Outsourcing overview • Definition of “Outsourcing” • Why consider outsourcing • Who provides outsourcing services • Factors to consider • How to outsource functions

4. History of Riverside County • First and largest—why did they do it? • Library Systems and Services in Riverside • Previously managed by City of Riverside • Reasons for outsourcing

5. RCLS Steps to Outsourcing • RFP issued early 1997 • Three entities responded • Evaluation of bids

6. Why was LSSI chosen • In business since 1981 • Maximum service for the dollar • Financially secure

7. Other providers • Library Associates • OCLC for many library services • Automation vendors for ASP solutions • Book jobbers for technical services • Temporary agencies • Consultants and search firms

8. Concerns • Widespread concerns • Job security • Concerns about salary and benefits • Level of staffing • Availability of library services • Local control • Concerns with merchandizing

9. Myth # 1: Privatization • Outsourced libraries are… • Publicly funded • Publicly governed • Public policies • A publiclibrary

10. Myth # 2: Loss of local control • Outsourced libraries are… • Accountable on an annual basis • Highly scrutinized • Fully auditable • Valued for offering greater local control

11. Myth # 3: No librarians • Outsourced libraries are… • Librarians doing library work • 72 MLS staff in LSSI • Rehired former staff

12. Myth # 4: Limited services • Outsourced libraries offer… • Programming • Interlibrary loan services • Reference and information services • Literacy • Outreach

13. Myth # 5: Low Wages • Outsourced libraries… • Hire at market rate • Hire former salary • 100% filled on the West Coast • Wages driven by contract • Provide annual (merit based) increases

14. Myth # 6: No Benefits • Outsourced libraries offer. . . • Full range of benefits • Part-time benefits • No pension, but 401K

15. Then how DOES it work? • “How do you people make any money!?” • Efficiencies • Valuing and rewarding creativity • Economies of scale • Seeking plural funding • Building long-term relationships

16. Looking for Efficiencies • Eliminate wasteful practices • Emphasize public services • Minimize “back room” operations • Use Automated solutions

17. Motivating Staff • “Working smarter” encouraged • Staff cross-trained • Creativity and motivation rewarded • Customer service • Training and continuing education • Professional involvement

18. Economies of Scale • Centralized support for • Automation • Human resources • Accounting • Collection development • Management consultation

19. Seeking “Plural Funding” • Outside funding through: • Grants • Concessions • Donations and bequests • Memberships

20. 10 years of progress in RCLS • 18 new libraries • Increased hours • $2 million+ in grants • Increased staffing • Book budget ten-fold increase

21. New Programs • Early literacy • ESL classes • Inland Library Network • Award-winning Latino outreach • Author programs • Staff development day

22. Satisfied Customers • Public • Friends of libraries • Staff • The Board of Supervisors

23. Making it Work • Riverside County Lessons: • Oversight and due diligence • Transparent record keeping • County policies • Partnership

24. Conclusions • Not the norm • It has worked in RCLS • Viable option in some places • Can bring stability • Come visit!