Planning activities at higher education institutions should be comprehensive, program based, and long-range. The daily process of planning and the necessity of integrating planning and resource allocation into a single system are emphasized in this handbook, which deals only with centralized planning activities. The focus is on program merit, not political structures, as the dominant aspect of planning. Four schools that were resources for the development of the handbook are Ball State University, Eastfield (Texas) College, the University of Oklahoma, and Willamette University. The first step in developing a planning process is to assess the institution's need and desire for it. The next step is to identify and describe the context for planning, by conducting institutional studies, developing an education plan, and writing a description of the planning process to be implemented. Implementation and operation of the planning process is the third steb. Techniques and steps for assessing the level of current planning and approaches to the design and implementation of a planning process are described. An annual planning cycle which can be modified to meet individual needs is outlined. A bibliography is included. (SW)