Data‐driven budget reductions: a case study

Purpose – The purpose of this paper is to describe how a medium‐sized university library implemented activity‐based costing (ABC) and other broad‐based decision‐making strategies to make the necessary budgetary cuts and refocus library services accordingly. Design/methodology/approach – The paper uses ABC to quantify the cost‐drive of services in the library. Findings – Given the current budgetary cuts academic libraries are facing, a rational, data‐driven, ABC approach can lead to constructive organizational decision making and outcomes. Originality/value – The paper demonstrates the value of activity‐based costing in assessing services and addressing issues on how libraries can do more with less.