Economic Impact Toolkits for Archives, Museums and Libraries

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Economic Impact Toolkits for Archives, Museums and Libraries. ALMA UK 1 st December 2010 Oliver Allies & Jamie Buttrick. Introduction. Our Brief To analyse economic impact methodologies for the sector Assess the pros and cons and thinking behind each method - PowerPoint PPT Presentation

Text of Economic Impact Toolkits for Archives, Museums and Libraries

  • Economic Impact Toolkits for Archives, Museums and LibrariesALMA UK1st December 2010Oliver Allies & Jamie Buttrick

  • IntroductionOur Brief To analyse economic impact methodologies for the sectorAssess the pros and cons and thinking behind each method Recommend methods for the creation of toolkits, suitable for application across a range of organisationsRecommend an outline process for piloting these

  • Our ApproachExtensive desk based review of economic impact research (reviewed c.60 research documents)Consultation with (19) key stakeholders from each representative sector to discuss feasibility of data capture Progress session (today) Workshop session with ALMA Working Group 1st December

  • Economic ImpactDefinition Examines the economic effect of an activity on a specific geographical areaOriginSporadic usage in 1980s (although said to have emerged in 1960s John Galbraith)More commonplace in the 1990s linked to appraisal and evaluation in the public sector (HM Treasury Green Book first published in 1991)Widespread usage over the last 10 years linked to the need to identify additionality and return on investment (English Partnerships Additionality Guide 2001, Impact Evaluation Framework, BERR 2008)

  • Economic Impact ApproachesMany different types of impact assessment. Three techniques are most commonplace for the assessment of economic impact: Multipliers calculating expenditure impacts and the multiplier effects of theseContingent Valuation (willingness to pay/willingness to accept)Return on Investment broadly combining the two approaches above to generate a ratio

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    Economic Impact Research in the Cultural Sector Analysed in this Study

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    Research Studies

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    Economic Impact Research in the Cultural Sector Analysed in this Study

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  • Economic Impact ApproachesMultiplierSeeks to capture and map expenditure related impacts from an organisation over a given area/areasProcurement spendSpend on employeesVisitor related spendUtilises Keynesian Multipliers to assess the indirect and induced effect of this spend

  • Economic Impact Approaches - Multiplier

  • Economic Impact Approaches - MultiplierProsRelatively straightforward and resource efficientBenchmarks available and considered appropriateMost widely used and recognised impact approachConsRelatively narrow in focus tendency to overlook social impactsMost suited to those activities that offer an economic returnAdditionality and attribution aspects can cause confusion particularly visitor spend

  • Economic Impact ApproachesContingent ValuationMore widely associated with an assessment of the publics willingness to pay (WTP) or willingness to accept (WTA)WTP - Surveys of users and non-users of services to assess what value they would pay for those services (if they were free)WTA the level of compensation an individual (user and non) is willing to accept for the loss of a service/goodPopular in the United States and used by the British Library

  • Economic Impact Approaches Contingent ValuationProsA means to capture value placed on non-marketed goods and services An effective way of capturing intrinsic valueCould utilise benchmarks (derived from pilot or targeted analysis) for aggregationConsDemands extensive survey consultation carefully worded to avoid confusionIs a challenging concept for the public to grasp in relation to both libraries and archives in particularThe challenge of capturing non-user value

  • Economic Impact ApproachesReturn on InvestmentOffers a combination of contingent valuation (CV) and multiplier techniquesSeeks to provide a ratio of return per pound invested (e.g. 2.60 return for every 1 invested)Is increasingly utilised to assess government spend (particularly RDA investment)Has driven the desire to capture economic values for all activity deliveredemergence of Social Return on Investment (SROI)

  • Economic Impact Approaches Return on InvestmentProsEnables the greatest breadth of activity to be capturedIs equipped (where possible) to provide values associated with social activities (through the adoption of SROI techniques)A focus on user value would overcome some confusionConsCan demand extensive resourcesDue to diversity of socially related activity it would not be possible to capture social returns through a toolkit approachDemands training and knowledge of SROI

  • Assessing the Impact of Socially Oriented ActivitiesDanger of overlooking diversity of activities delivered within the sectorCapturing social value increasingly popular over the last 5-10 yearsEmerged within this sector e.g. Generic Learning Outcomes and Generic Social OutcomesChallenge of capturing this data in an effective, robust and consistent manner e.g. 22 different approaches identified (NEF 2005)Social Audit and Accounting and Social Return on Investment (SROI) most prominent

  • Stakeholder FeedbackBroadly, greater understanding and experience of impact assessment in museums sector than in libraries/archivesIn general information related to the multiplier approach was not deemed too onerousGeneral recognition of the need for impact assessment and willingness to participateConsensus of the need to know what to collect, when and why

  • Stakeholder FeedbackRequire clarity on what value they will gain from the exerciseResource (time and personnel) main barrier to participationAlignment to frameworks or measurements or performance measurements will boost participationRepresented a broad and extremely diverse spectrum of social activity

  • Implications of FindingsClarity on what are the goalsAdvocacy?Benchmarking performance?Clarity on what are the returnsFine balance of an organisation or individuals return on investment from participating in this researchConsistency on what messages are provided

  • Implications of Findings Toolkit Potential?Is the development of a toolkit and its roll-out a feasible prospect?Does a one-size fits all approach seem possible?What type of toolkits are already being used?

  • Toolkit ReviewFew toolkits exist with a specific economic impact remitToolkits as guidesAIM Toolkit (DC Research)Contingent Valuation Toolkit (JURA)Toolkits as toolsScottish Enterprise Additionality toolkitFor effective aggregation a combined guide and toolkit is requiredNeeds to be simple and straightforward but robust

  • Toolkit OptionsFormatElectronic favoured by stakeholders (albeit with scope to provide hard copy)Could enable aggregation of impact yet provide individual organisations with data (a hook)Ownership and support challenges

  • Toolkits Initial ProposalsImpact Approach Museums/ArchivesMultiplier methodology for assessment of Museums and Archives is fit for purpose Options of Approach (resource implications)Low - Hard copy guideMedium - Provide a electronic/hardcopy guide and toolkit High - Provide online resource for download/upload of returns

  • Toolkits Initial Proposals Museums and ArchivesMedium resource approach (ERS preferred approach) as:Facilitates organisational impactScope for aggregationUtilise existing data where possible to minimise resource investment (PSQG and Gift Aid for example)Potential agreement for required primary researchPilotingSuggest testing internally prior to initial roll-outClarity of messages and promotionManaged roll-out and testing with early adopters

  • Toolkits Initial ProposalsImpact Approach LibrariesMultiplier whilst possible, in danger of underplaying scale of impactWithin the United States ROI increasingly utilised based on UK research (Economic Value of Public Libraries in the UK Morris et al 2002)ROI approach in US now standardised and available as an online calculator - http://www.chelmsfordlibrary.org/libr