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Making ROI Work Joe Matthews ALA Annual LLAMA Program June 2010
Investments
Cost-Benefit Analysis
Value of a Library Use Benefits Nonuse Benefits
Value Taxonomy Money saved Time saved Accomplishments
“Free Stuff” 	Cost Avoidance
Value Calculation Alternative cost 	 X  	amount of use
Value Calculator
Direct Economic Benefits 	Economic impact of library spending
Direct Economic Benefits Library as  Destination
ROI Studies
Consumer Surplus Survey
Observations
Indirect Benefits
Contingent Valuation Willingness to Pay Willingness to Accept
Nonuse Benefits Option to use in the future Option for others to use
Total Value Direct use value – 40% Use in future – 20% Use by others – 40%
Utility of ROI Studies 	Improved credibility 	Complements other use measures 	Complements qualitative information
Frameworks Library  Balanced  Scorecard Social  Return on  Investment
Resources Measuring for Results.  Libraries Unlimited, 2004 The Evaluation and Measurement of Library Services.  	Libraries Unlimited, 2007 Measuring Your Library’s Value.  ALA Editions, 2006. Worth Their Weight.  Americans for Libraries Council, 2007. Making Cities Stronger.  Urban Libraries Council, 2007.

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