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An old tool with potential new uses: return on investment

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Purpose ‐ The purpose of this paper is to examine potential new uses of return on investment (ROI) in alternative methods for library assessment and valuation. Design/methodology/approach ‐ Uses examples of recent uses of ROI by libraries to identify potential new applications of ROI in library assessment and valuation. Findings ‐ ROI investment has historically been used by libraries for the assessment of past performance of library organizations in a reactive/defensive nature or for assessing the value of customer services. ROI has not been widely used as a proactive assessment tool, to introspectively assess administrative or other internal services, or as an offensive assessment and valuation tool, especially for intangible performance assessment and valuation. Originality/value ‐ New applications of the ROI assessment tool could provide library administrators with proactive means of increasing the effectiveness of library assessment, valuation, and their results.
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Keywords: Assessment; Financial management; Financial performance; Libraries; Return on investment

Document Type: Research Article

Publication date: March 27, 2007

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