OutsourcingAn Webcast

Presenters: Nancy Johnson and Mark Smith

nljohnson@rceo.org and marks@lssi.com

Monday, October 15, 2007

12:00 noon to 1:00 p.m.

Infopeople webcasts are supported by the U.S. Institute of Museum and Library Services under the provisions of the Library Services and Technology Act, administered in California by the State Librarian.

Agenda

Definitions and overview

History of Riverside County Library System

Outsourcing Fact and Fiction

How Outsourcing Works

Outsourcing overview

Definition of “Outsourcing” Why consider outsourcing Who provides outsourcing services Factors to consider How to outsource functions

History of Riverside County

First and largest—why did they do it?First and largest—why did they do it? Library Systems and Services in RiversideLibrary Systems and Services in Riverside Previously managed by City of RiversidePreviously managed by City of Riverside Reasons for outsourcingReasons for outsourcing

RCLS Steps to Outsourcing

RFP issued early 1997 Three entities responded Evaluation of bids

Why was LSSI chosen

In business since 1981 Maximum service for the dollar Financially secure

Other providers

Library Associates OCLC for many library services Automation vendors for ASP solutions Book jobbers for technical services Temporary agencies Consultants and search firms

Concerns

Widespread concernsJob securityConcerns about salary and benefitsLevel of staffingAvailability of library servicesLocal controlConcerns with merchandizing

Myth # 1: Privatization

Outsourced libraries are…Publicly fundedPublicly governedPublic policiesA public library

Myth # 2: Loss of local control

Outsourced libraries are…Accountable on an annual basisHighly scrutinizedFully auditableValued for offering greater local control

Myth # 3: No librarians

Outsourced libraries are…Librarians doing library work72 MLS staff in LSSIRehired former staff

Myth # 4: Limited services

Outsourced libraries offer…ProgrammingInterlibrary loan servicesReference and information servicesLiteracyOutreach

Myth # 5: Low Wages

Outsourced libraries…Hire at market rateHire former salary100% filled on the West CoastWages driven by contractProvide annual (merit based) increases

Myth # 6: No Benefits

Outsourced libraries offer. . .Full range of benefits Part-time benefitsNo pension, but 401K

Then how DOES it work?

“How do you people make any money!?”EfficienciesValuing and rewarding creativityEconomies of scaleSeeking plural fundingBuilding long-term relationships

Looking for Efficiencies

Eliminate wasteful practices Emphasize public services Minimize “back room” operations Use Automated solutions

Motivating Staff

“Working smarter” encouraged Staff cross-trained Creativity and motivation rewarded Customer service Training and continuing education Professional involvement

Economies of Scale

Centralized support forAutomationHuman resourcesAccountingCollection developmentManagement consultation

Seeking “Plural Funding”

Outside funding through:GrantsConcessionsDonations and bequestsMemberships

10 years of progress in RCLS

18 new librariesIncreased hours$2 million+ in grantsIncreased staffingBook budget ten-fold increase

New Programs

Early literacyESL classesInland Library NetworkAward-winning Latino outreachAuthor programsStaff development day

Satisfied Customers

PublicFriends of librariesStaffThe Board of Supervisors

Making it Work

Riverside County Lessons:Oversight and due diligenceTransparent record keepingCounty policiesPartnership

Conclusions

Not the norm It has worked in RCLS Viable option in some places Can bring stability Come visit!