Getting to “Yes”

1. Getting to “Yes” Building a Successful “Brand” to help pass a millage… Mideastern Michigan Library Cooperative

2. Getting to Yes! • Seminar Objectives • Theory of Social Change • Current State Funding • Finances for Libraries-Costs/Revenues and Fundraising • Understanding bond/millages as Pass/Fail tests • The current tax climate for Libraries • Assessment of Millage/Bond Feasibility • Building a plan to achieve success • Roles for trustees, director, staff, friends • Proactive marketing to create an environment for future success

3. Social Change….then • Ancient Greece…campaign to free slaves • 1721-Cotton Mather-campaign to persuade citizens to accept inoculations against smallpox • 1750-English activist campaign to abolish debtor prison • 1787-Federalist Papers published by Madison, Hamilton et al to generate support for the new Constitution • 1840-60s-Abolitionist campaigns to end slavery

4. Social Change…then • Marketing did not exist as a discipline • Campaigns tended to be crude • Limited Targeting ability , more effective means… • Legislation • Leverage of power • War/violence

5. Social Change…now.. “Management technology involving the design, development and control of programs aimed at increasing the acceptability of an idea or practice in one or more groups of target adopters.” Kotler and Roberto “Social Marketing-Strategies for Changing Public Behavior”

6. Change for A Better Society..Different From Changing Brands • Litmus test is behavioral/values-based, not $$ • Leverage from influence of the “Institution” • (ie. “Get an Annual Physical” from the American Heart Association) • Leverage Social Values • Permanent Change in Behavior/Lifestyle • Fit with Cultural Milieu • Reconciles conflicts in wants by prioritizing value

7. The Social Product (Cause) A problem can be the assumed logic between current attitudes/beliefs and predicted behavior • Taking the Library for “granted” may mean supporters stay home, anti-tax voters dominate Yes! Remember…the goal is to impact voting behavior.

8. Idea…. Cancer can be checked, if detected early Cigarette smoking is hazardous …... Human rights are due all people Jaywalking is dangerous and interrupts traffic. Planned babies are better cared for than accidental babies. Saving endangered species is important to our entire ecosystem. Practice Cancer screening/mammograms Eliminate smoking/tobacco use/no smoking in public bldgs All people be given rights to fair trials , impartial judicial review Cross only at crosswalks w/light Tangible Object Condoms/IUDs/Contraceptives Endangered Species Act/DDT elimination/Conservation habits

9. Cell A Initiative to persuade men to be examined for colon cancer - cost is low -action clearly benefits the individual Cell B Recycling programs - cost is low - action benefits society The Type of Initiative... Cost is low Intangible, societal benefits Tangible, personal benefits • Cell D • Initiative to reduce • chlorofluorocarbon (CFC) • - cost to affected chemical • companies is high • - action benefits society • Cell C • Smoking cessation program • - cost is (difficulty) is high • -action clearly benefits • individual first Cost is high

10. Cell A - clear, direct benefits - change is easy - communication and information are key Cell B - intangible, indirect benefits - change is easy - ultimate benefits should be stressed - convenience is key …and the Challenge It Presents Cost is low Intangible, societal benefits Tangible, personal benefits Cell D - intangible, indirect benefits - change is difficult Try to reposition into Cell C; if repositioning is impossible: 1) Try leveraging the enthusiasm of early adopters 2) Try supply-side persuasion Cell C - clear, direct benefits - change is difficult - balancing communication efforts with strong support system is key Cost is high

11. 5 Factors Influencing Adopters • Force • -Motivation toward goal • Stimulation level of message • Direction • How and where to respond to campaign request • Mechanism- • Agency, office or retail outlet to enable action • Adequacy- • Agency capability in performing task (credibility) • Distance- • Price/Value relationship (Energy vs. reward)

12. Social Norms Theory • …behavior influenced by incorrect perceptions of how other members of a social group think and act. • Overestimations of problem behavior encourage problem behavior • Underestimations of healthy behavior discourage good behavior Correcting misperceptions likely to result in decreased problem behavior and increased healthy/protective behavior

13. College Binge Drinking • “Students regularly overestimate the extent to which peers are supportive of permissive drinking…and this overestimation is an indicator of how much an individual will drink..” Perkins and Berkowitz, 1986

14. Library Social Norm • Libraries are highly correlated with the education of young people in the community. • Excellent students tend to use the Library • Reading and using the Library is cool. • Excellent students really do watch less TV and use video games less …..or…. • Lots of people use the Library regularly! • Conclusion: Healthy, viable library is key to the educational excellence of young people • Conclusion: The Library really is a valuable highly utilized asset…!

15. Positive Deviancy • Problem: Childhood malnutrition in Vietnam • Traditional solution: Outside feeding support • But…why…? • A few very poor families had healthy children?

16. Positive Deviancy • Healthy Families • Collect tiny shrimps and crabs • Sweet potato greens • Feed 3-4 x day • Food is widely available/free • But culturally….inappropriate for young children

17. Positive Deviancy • Plan… • Teach Mothers to forage for greens, shellfish • Sponsor daily cooking sessions • Endorse appropriate use of this food for children • Observation of healthier children • Concept of Positive Deviancy: • Champions/local participation in place • Quick progress • Sustainable • Broadly applicable principles

18. Library Positive Deviancy • Overcome socioeconomic disadvantages (ie. TV/video games) with positive alternate behaviors • Parent/grandparent reading programs-how to read to your children • Story time frequency-guest readers • Tie-in with Big Brothers/Big Sisters • Teen/Tween reading area Library is conduit for positive deviant behavior

19. Case Study-Branding Iodized Salt-Pakistan • Problem: Iodine deficiency a major cause of goiter, cretinism, stillbirths, deaf mutism • Pakistan has 70% of population at risk of IDD • Strategy: Develop consumer demand for iodized salt while enabling producers to generate supply

20. Case StudyIodized Salt-Pakistan • Objectives: • Technical skills and incentives to producers to manufacture iodized salt • Education in benefits • Assistance in obtaining mixers and equipment • Logistical support for supplies of potassium iodate • Assistance in packaging with “Hand and Pot” logo and brand name • Training in marketing

21. Iodized Salt-Pakistan • Objectives: • Consumer Demand creation for iodized salt • “Hand and Pot” logo • Promotions/giveaways to retailers • Posters, mobiles, POP displays • Teachers trained to educate children and families • Fun testing kits..does family salt turn purple? • Volunteers visit villages • Presentations • Reinforcement of good behavior

22. Case StudyIodized Salt-Pakistan • Lessons Learned • Industry must buy into process • Small processors now spend own funds to iodize • “Hand and Pot” Salt is now a brand name product • Value of marketing • Simultaneously create supply and demand • Legislation should follow not lead…won’t work alone. • NGOs/gov’t often don’t work well w/private sector

23. Library Branding • Values/Standing in the Community • Flint Public Library recommended books, videos, music • With ratings? • For reading, watching, listening value? • Flint Reads (One book, one Community) • Convener of literacy, reading, culture issues

24. Review-Ways to Succeed • Situation involvement- Make it matter to me • Enduring involvement- Long term involvement • Benefits/Reinforcers-Personal benefit and goal achievement requires only participant to succeed • Cost- Low personal cost • Benefit/cost ratio(in balance) • Preexisting demand(already biased in favor ) • Segmentation(message segmented by audience)

25. Team Assignment • Discuss the social values in your community which may be leveraged in support of the Library? • What elements of social discontent may work in your favor? • Does your community take your Library “for granted”? Why? • What kind of challenge does your Library represent Cell A, B, C, or D? Discuss and identify areas of agreement/similarity

26. Finance Speak Definitions Levy- Charge against a citizen's person or property or activity for the support of government Millage-A tax rate on property, expressed in mills per dollar of value of the property (1 mill= $.001) Bond-a certificate of debt (usually interest-bearing or discounted) issued by a government…in order to raise money; the issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal

27. Financial Fundamentals • Revenues-$ flowing into an organization, usually… earned for providing products/services • Costs-$ flowing out to provide heat/light/staff as well as cost of products and services • Profit-In non-profit orgs it is excess revenue over costs…used to compensate for losses elsewhere • Inflation-increased costs not reflected in any tangible increase in value received • Balanced Budget- • Combined funding/revenue streams= Costs

28. Millage vs. Bond Millages may be temporary or permanent but are often used for ongoing operations Challenge: Operating millages that expire! Bond issues often reflect a major building project, are temporary in nature and eliminated over time based on the amortization of the amount borrowed using the assessments received from Taxpayers.

29. Library $$ Link to Performance • Per capita Funding • Michigan($35.11) • U.S. Avg($31.18) • Ohio($56.85) • Mississippi ($13.54) Michigan has a tradition of passing Library millages

30. Michigan Library Financing … … Sources • Federal Funding $.02 • State Funding $1.21 ???? • Local Funding $31.20 • Other $2.68 Total $35.11 Michigan State aid to libraries could be in free fall or be eliminated altogether.

31. Library $$ Link to Performance • Library visits per capita.. • Ohio 7.1 • Michigan 4.32 • Mississippi 2.67

32. Michigan Library Financing • Item circulation Per Capita • Ohio (14.63) • Michigan (6.08) • Mississippi (3.26)

33. Three Problems! • Current millage formulas do not anticipate increased costs of doing business 2. Most Libraries have few developed earned revenue streams or organized fundraising

34. Problems #3-5=The Perfect Storm • Libraries are running out of room/technology/infrastructure • Costs to correct involve major expansion or rebuilding 5. Libraries are largely unprepared for the pushback from citizen rebellion against too many millage requests in an unfriendly economy NO!

35. Define “Unprepared”! No….. • …long term communications/branding • …organized/systemic planned giving • ..ongoing/significant fundraising activities • ..significant Fee for Service

36. What does this have to do with passing a Millage? • Millages/bonds primarily capital expenditures • Operating millages are often static • No mechanism for unusual/unanticipated • Little room for marketing/promotion Passing a Millage is Necessary …….but not Sufficient For Library Financial Health

37. 3-Leg Stool Library Financial Sustainability • Stable community funding with long term phased building development/ expansion 2. Comprehensive fundraising/planned giving structure 3. Fee For Service Plan

38. Comprehensive Fundraising/Planned Giving • Need… • War Chest for Campaigns • Special equipment/programs/services • Endowment • Unanticipated needs (failed boiler) • Collection Opportunity • Other ___________________

39. Fundraising • Always be fundraising • 2-3 Major Events per Year • Smaller events • Easy to donate-online with credit card • Specific projects or overall • Foreign film collection • Foreign language • Genealogy • Library Garden

40. Fundraising Ideas • Dance/Ball • Car Show • Auction (Silent/Live) • Reception (Celebrity-Author-Friends) • Book Sale (BIG) • Race (5k/Rally/Lake Swim) • Night at the Movies • Calendar

41. Planned Giving • Aging Boomers will stimulate largest transfer of wealth in history of the world • Key reason for donating is values • Libraries have a strong base of support among many seniors-usage irrespective • Restricted/Unrestricted opportunities • Often linked to Endowment Lena Meijer Conservatory

42. Fee for Service • Tiered Services Structure Consulting Special Collection Sales Shipping Value-Added Fee for Service 5-15% Partnership Appointments Outside Training Participation Services-15% Standard Collection Reference Interlibrary Loan Free Services 70-80%

43. Fee For Service-Product/Services • Book/Movie/CD Sales-Partnership • Other Purchasing Partnerships • Post Office Substation • Passports • Research • Room/Facility rentals • Teen lock-ins • Theater trips • Seasonal Sales • Cultural Events (i.e. Concerts) • Cafe

44. Library Financial Sustainability Reduce dependence on State/Local funding Funds for War Chest/Advocacy/Special Projects Opportunity for Discretionary Support Community Awareness of Library Funding Needs Market Responsiveness

45. Harper Woods Library Financing “If …funding sources (state, county and local) continue to decrease…., it is likely to affect the library’s ability to provide services… “…..increases in health care and other….will make it more difficult to offer core services and purchase materials without sacrificing quality and/or quantity. The only revenue line item to increase in 2003 was User Fees, as more and more people used the library’s services (books, videos, printers, copiers and other services). “

46. Library Millages/Bonds Nationally, at the close of the November, 2004 elections libraries split 50-50 on requests for millages. Michigan results for 2004 are better- 3:1 favorable But…(of 18 successes) 44% of successful efforts were for less than 1 mill 2 of the successful efforts came after 3 failed attempts 2004 is prior to Delphi, GM, Ford closures