Impact Studies

Metrics for Libraries: Outcomes, Value &

Impact

Elizabeth Glass

Toronto Public Library

Data is the Sixth Sense

From pew to Pew Every generation gets the gurus it craves… and there’s a 40%

chance there named Dan!

The United States of Metrics. New York Times. Sunday May 18, 2015

Context: Public Sector

Governments are faced regularly faced with tough funding choices. Policy makers have to weigh the merits of investing in different projects….most people will tell you libraries are a good thing, but decision makers need more. They need a solid, robust case for investment.

Dollars, Sense and Public Libraries. The landmark study of the socio-economic Victorian public libraries. 2011.

http://www.slv.vic.gov.au/sites/default/files/dollars-sense-public-libraries-summary-report_1.pdf

City of Toronto’s Budget Priorities

• Core priorities for the City of Toronto are to improve customer service, be more transparent and accountable, and reduce the size and cost of government. – Emphasis on

• Key performance measures

• Alternate revenue streams

• Toronto Public Library participated in the City of Toronto Core Service Review of Library Service 2011

Background: Research in best practices in municipal funding models

• Partnered with Institute on Municipal Finance and Governance: Monk School of Governance to present a session sponsored by the TD Bank Group

Shared Spaces: Funding and Managing Libraries and Parks in Tough Times

Speaker:Shiobhan Reardon: Director Free Library of Philadelphia

Results of Economic Value of the Free Library of Philadelphia– Libraries prepare our workforce, by teaching over 24,000 children and

adults to read where 50% of the working population in functionally illiterate

– Libraries connect people to jobs and careers, serving as the vehicle for 979 Philadelphians finding jobs, resulting in $30 million in wages in one year and generating $1.2 million annually in city wage tax in a City

– Libraries grow businesses, with 8,630 businesses starting or improving because of help received at the Free Library.

– Libraries enrich neighborhoods, creating $698 million in home valuesand generating $18.5 million annually in property tax revenue for the city.

Context: Toronto Public Library Study

Responds to motions by the Library Board and City Council

Toronto Public Library Board

That the City Librarian undertake a study on the economic impacts and benefits of Toronto Public Library and the role of public libraries in economic development

Toronto City Council

That the Chief Librarian prepare a cost-benefit analysis of the Open Hours Policy and the economic impact of Library services and provide a report to the City Manager for review and report prior to the 2014 budget process.

Context for the Study

Demonstrate Toronto’s Public Library’s support for City directions in concrete terms: – Collaborating for Competitiveness: A Strategic Plan for

Accelerating Economic Growth and Job Creation in Toronto (City of Toronto 2013)

– Creative Capital Gains: An Action Plan for Toronto (City of Toronto 2011)

– City of Toronto Middle Childhood Strategy (City of Toronto 2012)

•

Literature Review

Process to develop the study

• Identified funding from the Toronto Public Library Foundation

• Issued Request for Proposal for research partner

• Selected Martin Prosperity Institute as partner– Conducted Literature review of valuation studies in the

library/public sector

– Established valuation methodology

– Completed analysis

– Reviewed Toronto Public Library results in the context of other studies

• Communicated study results

So Much More:

The Economic Impact

of the Toronto Public

Library on the City

of Toronto

December 9, 2013

Methodology

MPI followed a thorough, comprehensive approach

to calculating the economic impact of TPL

services.

The Martin Prosperity Institute conducted the study for the Toronto Public Library using accepted valuation methodologies commonly used in the library and public sector and standard library statistics collected for international and Canadian benchmarks. The study examined the economic impact of the Toronto Public Library from a number of lenses, building on methodologies of other studies and introducing new measures to value library space.

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Methodology

Total economic impact includes:

• Direct spending – impact of money flowing through the institution – operations, capital, employment, materials

• Direct tangible benefits- benefits of services that can be reliably estimated

• Indirect tangible benefits – the multiplier effect of direct spending and re-spending as money flows through the economy

How value $$ was calculated

Direct benefits:

• The market value of library services used annually including collections, programs, technology access, reference and database services, and meeting and study space

• For collections two scenarios were used• Retail value at 20% of actual value

• Full retail value with the assumption that reading a book once is the equivalent of owning or it is not available

How value $$ was calculated

Indirect Tangible Benefits

• The impact of re-spending of dollars within the local economy using a multiplier in the range of 1.4-2.0 as applied by Statistics Canada and other recent economic studies

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Toronto Public Library delivers $5.63 of economic impact for every $1 spent

Toronto Public Library creates over $1 billion in total economic impact

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Total direct benefits reach $502 per member

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The average open hour at a branch generates $2,515 in direct benefits

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Return on Investment

ROI is 463%

The return from the City of Toronto’s investment in the Toronto Public Library is

463%, which is the midpoint of a range very conservatively estimated to be 244% and is

comfortably shown to reach 681%.

Intangible benefits deliver value

Opportunities for residents to improve their literacy skills, enhance their educational and employment opportunities, and improve quality of life for themselves and their families through library collections, services and programs deliver a lifetime of value to residents and increase the economic competitiveness and prosperity of Toronto.

Neighbourhood Branches Provide Communities Intangible Benefits

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“Cities that promote diversity and tolerance also tend to become places that are open to new ideas and different perspectives, promoting creativity. This in turn builds cities that are attractive to individuals and businesses involved in the creation of new ideas, products and services.”

The Importance of Diversity to the Economic and Social Prosperity of Toronto, MPI, 2010

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Results in Context

ROI is 463%

The return from the City of Toronto’s investment in the Toronto Public Library is

463%, which is the midpoint of a range very conservatively estimated to be 244% and is

comfortably shown to reach 681%.

What were working on

Quantitative Program Evaluation

Toronto Library Settlement

Partnerships (LSP) Program

Evaluation Report

2013-2014

What were working on

•

Business Intelligence Strategy

Moving Forward

Data Governance Framework

Data Architecture

Tools and Technology

Processes and

Practices

Governance

Metrics

Policies, Principles and

Standards

Organization

Data

governance

framework

9 December 2013

Q & A

(and, Thank You!)