Data collected during a recent study of statewide planning at 81 institutions indicate (1) that institutional planning has been accomplished largely through committee structures which separate planning efforts of faculty from those of administrators, (2) that active faculty involvement is more evident when they receive administrative encouragement, when a new campus is being developed, or when the function of an institution is undergoing a fundamental change, and (3) that faculty reluctance to participate in planning may continue unless current planning moves toward a more qualitative, goal-oriented approach. A hypothetical situation is presented which clarifies faculty roles and suggests what effective institutional planning should be. A comparison is drawn between current and suggested faculty participation, with discussions on observed similarities and dissimilarities. Contemporary institutional planning focuses on quantitative development involving physical, budgetary, and demographic factors of expansion. It is suggested that faculty play a "reactor" role in quantitative planning, but an "initiator" role in qualitative planning for meaningful policy and practice in higher education. (WM)