This booklet presents a general outline for conducting a long-range planning study that can be adapted for use by any institution of higher education. The basic components of an effective long-range plan should include: (1) purposes of the plan, which define the scope of the study and provide the setting in which it will be initiated; (2) a set of assumptions on which the study will be based, formulated to represent the conditions under which the plan will be implemented; (3) a functional definition of the institution's specific nature and purpose, to provide a solid foundation on which a sound plan may be achieved; (4) a critical analysis of the institution's current status in relation to its stated purposes, and a description of trends that might be developing within it; (5) a projection of conditions, accomplished by using empirical data that can be assembled in a logical manner to support conjectures about the future; (6) a realistic definition of objectives that touch all operational levels of the institution; and (7) guidelines for evaluating and revising the plan. The report also discusses problems that contribute to the failure of a long-range plan, and suggests how institutional planning fits into a larger organizational scheme, such as a system of higher education. (WM)