This report on the results of a new program to systematically examine and strengthen the role of the library in the college's instructional process is organized into three main sections: situational analysis, needs assessment, and action planning. The first section discusses current developments in higher education, including economic trends, state and federal aid, tuition, enrollments and academic trends; the Manchester College profile in the context of its historical background, statement of purpose, academic program, faculty and student populations, financial status, and administration and policy formation; and the library profile, including trends in libraries and library service, physical facilities, the collection, acquisitions, reference, circulation, technical services, job descriptions, the library committee, and current policies. The results of surveys of the needs of library users, library services and management needs, and institutional and library policy making are reported in the second section. The concluding section summarizes what needs remain and how those needs may be met, when, and by whom. Appended are 25 tables of data from faculty, student, and staff surveys, and copies of a statement on and standards for the faculty status of college and university librarians. (RBF)