An old tool with potential new uses: return on investment

Abstract

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.

Citation

Nash White, L. (2007), "An old tool with potential new uses: return on investment", The Bottom Line, Vol. 20 No. 1, pp. 5-9. https://doi.org/10.1108/08880450710747407