To discover why innovations fail, a model of institutionalization-termination process of innovation was applied in a study of the colleges at the State University of New York (SUNY) at Buffalo. Additionally, a recent formal evaluation of the college that updates the analysis is appended. The concepts of "boundary expansion" and "boundary contraction" are explained as are the characteristics of "compatibility" and "profitability," which determine whether innovation will be institutionalized by boundary expansion or contraction. In 1975 at SUNY at Buffalo, each college interested in continuing was required to submit a charter. Four issues underlying chartering that were concerned with the compatibility of the colleges and universities are: organization and administration of the colleges, character of the collegiate assembly, academic freedom, and academic quality of college courses. Formulating and planning of the institutionalization-termination of the innovation, approving a plan, and implementing the plan are discussed. Interpretations of applying the model at SUNY at Buffalo are provided. The appended evaluation report addresses the colleges as residential units and as academic units, the governance of the colleges, and the colleges and the rest of the community. (SW)