Introduction
“If you can't measure it, you can't improve it.” It may be stating the obvious, but it is true. To effectively manage an organisation you must measure, and the same applies to managing an organisation's library or information service. The legal services sector is becoming increasingly competitive and, as a result, law firms are required to become more commercial in the way they are managed. This includes measuring and reporting performance. Information centres are affected by the same changes and those information managers who do not initiate the implementation of performance measurements may suffer the consequences, if they are unable to prove the value of their department.
I have based this paper on my experiences of working in the commercial sector, both in law and accountancy firms. However, performance measurement should be considered in any sector.
Why measure performance?
In an increasingly competitive environment, measuring performance enables you to prove your department's value to the organisation, and also to prove the return on investment into any new product or service.
Information departments are facing competition for their traditional services both internally and externally. Internally, direct user access to research tools and the rise of the Google generation have decreased demand for simple legal and business research requests. Information departments in law firms are now providing support in new areas, such as business development or intranet management. With this change in roles it is important that the work of information professionals is recognised and that other departments, such as Marketing and IT, do not take the credit. Externally, a trend towards outsourcing and off shoring support services could threaten the traditional role of the information professional. A number of investment banks have relocated their information centres to India and other offshore locations. Information professionals can prevent a similar trend within the legal sector by proactively demonstrating their value to the organisations they work for.
Lawyers are also facing increased competition. The Legal Services Act has been implemented with the aim of creating a more liberal legal services market. Although reforms proposed by this Act are not expected to be implemented until 2011, changes, such as extending the right to practice legal services to organisations such as the RAC and Tesco, do present a real threat to the traditional practice of law. Lawyers will increasingly have to differentiate themselves by demonstrating the quality and value of the service provided to clients. Demonstrating the effectiveness of a well resourced information department will help to differentiate an organisation from its competitors.
What to measure?
Sufficient time should be given to considering what activities to measure. You should aim to provide data which demonstrates the success of your department in helping the organisation achieve its business objectives, and also data which will assist managers to make informed decisions on the allocation of resources and the further development of the service.
Information professionals have traditionally been very conscientious about keeping usage figures, such as the number of enquiries received or the number of books borrowed. However, as a profession, we have not been quite so successful at relating these measurements to the performance of the business. What helps managers when looking at the allocation of resources, is to know who in the organisation is using the information service, what type of requests are being made, and how much time is spent on each request.
When considering areas of performance to measure, do take into account the changing role of the information professional. A recent report carried out by Thomson on the information professional in the 21st Century found that information departments are under increasing pressure to deliver commercial benefits to their organisations. Management will be more interested in measurements relating to winning or retaining clients than in measurements relating to collection management.
It is important that everyone in your team understands the importance of measuring performance and cooperates with the collection of data. In one organisation I worked for, the Research and Information department organised an away day so that the whole team could discuss what they understood to be the department's role within the organisation. This helped us to develop appropriate key performance indicators (KPIs). The value of this exercise was that it involved the whole team and took into account everyone's views. In a large team opinions may vary as to what are considered to be the most important functions of the department. Depending on your role it could be research, training, collection management, or knowledge management. Involvement in developing departmental KPIs at an early stage will help to ensure your team's co-operation with recording performance data.
Performance indicators will change in relation to ongoing plans for the department. When setting your KPIs consider your plans for the coming year. For example: what new resources will you be implementing; how do you plan to develop your team; what major projects you will be undertaking?
Finally, you should aim to match your KPIs to the objectives of the organisation you work for. This can be difficult if your organisation does not broadcast its business plan or indeed does not have one. If you do not have access to a business plan then extrapolate what you can about the organisation's plans from reports from the managing partner or internal newsletters. Plans could be to increase client base, to grow in size, or to expand overseas. If you can relate your KPIs to management plans, your department's value will be easily recognised.
How to report performance
As important as selecting the most appropriate measurements is selecting the best way to report your department's performance. In some organisations departments are required to report according to an established management system such as the Balanced Scorecard. Other organisations may adopt an in house approach.
The balanced scorecard
The balanced scorecard was developed by two Harvard academics, Kaplan and Norton, in 1992. Their aim in developing the system was to balance traditional financial measurements of performance with other indicators of success. Financial measurements that are used to measure the successful running of law firms, such as profits per partner, are only an indication of how the firm performed in the previous year. Of more interest to clients will be measurements which indicate value and quality of service. Such measurements may include client satisfaction rates, client retention, or turnover of staff.
The balanced scorecard helps organisations to clarify their vision and strategy and then translate these into action. It is a tool which organisations have adapted to suit their own objectives. In my experience implementing KPIs according to this method requires a lot of preparation, but the structure does help with relating strategy to action.
The diagram below provides a pictorial representation of how the balanced scorecard system works. The organisation's vision and strategy sits at the centre and around it are the different processes of the business:
• Financial
• Customer
• Internal business processes
• Learning and growth.
The diagram provides a statement for each process relating it to how the organisation intends to achieve its vision. According to the Balanced Scorecard you should categorise your KPIs according to these different processes.
For each process you should state your objectives, how you will measure the success of the objective and what you intend your ultimate target to be.
Problems can occur when you do not have objectives which clearly fit into these categories. For this reason the structure can prove too rigid but, even if you choose not to use this approach, it can give you some useful ideas for selecting performance measurements.
Table 1 The Balanced Scorecard.
In house performance report
Your organisation may not insist on a specific reporting tool, in which case you can devise your own. At Field Fisher Waterhouse we have established a quarterly management report which each business services department contributes to. We divide our reports into the following categories:
• Projects
• People
• Performance
Projects
Includes an update on any ongoing project we are working on as a team, e.g. implementing desktop tool training or assessing a new research tool.
People
Here we provide details of new staff, training courses staff have attended and details of any talks or articles that library staff have been invited to work on.
Performance
This includes usage figures for the research service categorised by department and enquiry type. We also provide usage data for the research tools. To prove our value to the firm, we record how many successful business pitches we have supported with background research. We also include user testimonials.
As yet, we have not set specific objectives with defined targets. Our approach is not as rigid as it would be using the balanced scorecard. Performance reports should suit the organisation you work for – a less structured approach suits us.
Some sample KPIs
If you do decide it would be beneficial to set some key performance indicators to measure your success against, I have provided below some examples of the type of KPIs which could be used to measure the performance of a library or information service. Where possible I have categorised the indicators under the headings used both by the balanced scorecard and those used for my internal management reports.
Table 2 Some sample KPIs
Tools for measuring
Once you have identified your performance objectives and possible targets, you need to consider how you are going to collect the data you intend to measure. Here are some suggestions for tools that can assist you:
Library management system
A good library management system which incorporates a research module enables you to monitor requests by user, enquiry type, time spent on each enquiry and resources used. As with any database, the quality of data depends on the accuracy of the information entered and managers are advised to review data input regularly. Ensure you keep data fields up to date to take into account new enquiry types, new resources and new members of staff. Aim to record all requests including very quick ones. For requests that would take longer to add to the database than answer keep a paper tally which is collated each month.
Vendor reports
Vendors should be able to supply database usage reports, but in my experience persuading them to provide reports on a regular basis can be a challenge. Reports provided by vendors can sometimes be confusing and may require additional work to extract the data in the format required. If a database is accessed using silent authentication, then you will not be able to extract usage by individual user, but there are research management tools available which can overcome this problem.
Research management tools
Research Monitor and Onelog are both vendor-independent online research management and cost recovery tools. Both tools can monitor individual usage without the need to have individual passwords. There are costs involved in implementing this type of tool, but these could be offset by possible savings you can make in cancelling or negotiating discounts on under-used resources.
User feedback
User feedback can provide a powerful addition to statistical data. Collect any unsolicited feedback you receive and use particularly useful comments in your performance reports. Ask for feedback on particularly long or involved enquiries. You may be surprised how willing your users will be to offer their comments.
Top tips for measuring your success
Be proactive
Do not wait to be told to collect usage data. If you are not collecting it already, start now. You never know when you could be called upon to prove your value to the organisation.
Select objectives which are simple to measure
Ensure you do not make extra work for yourself and select objectives which you know you can measure easily. It may be difficult to prove that your department is integral to winning new business, but you can demonstrate how many pitches to clients you have contributed towards.
Consider how best to present your reports, how often and to whom
If you are taking the time to collect usage data, then make sure you are sharing it with other decision makers in the organisation. Presentation is very important, whether you are using an established management system or an in house report. Statistical data is often more accessible if displayed as a graph. Ensure you deliver your reports regularly-either monthly or quarterly. Consider who will benefit from receiving your reports. Your immediate manager will be interested, but so may the managing partner. Your team will also be interested in monitoring your department's success.
Monitor the objectives you are measuring
Finally, ensure you make use of the data you are collecting. By producing regular reports you will be able to spot trends in demand for your services and react accordingly. Also make sure that your objectives remain relevant.
Biography
Victoria Jannetta is currently Head of Information Services at Field Fisher Waterhouse. Victoria has worked in both legal and accountancy practices during her career. She is an active member of BIALL and a former chairman of BIALL Council.
