By helping to concentrate the efforts of all organizational units on institutional goals, by establishing research-based information systems, and by learning to allocate scarce resources efficiently, institutional researchers can offer numerous benefits for the management and operation of 2-year colleges. A comprehensive institutional research program assesses resource allocation, student potential, institutional and student achievement, curricular and program needs and priorities, and the college's impact on the community. In undertaking these activities, the researcher's chief function is to provide data to assist management in arriving at sound decisions. As such, institutional research is a service function, rather than a line management or administrative function. Indeed, by participating in the administrative phase of the planning process, institutional researchers may relinquish their future potential as objective evaluators. Institutional researchers may fulfill their service function by conducting theoretically oriented, long-term institutional studies; providing evaluative information on all aspects of planning; providing predictions, simulations, and models; monitoring the effects of short-range actions on long-range goals; and applying management science principles. The paper concludes with brief descriptions of William Rainey Harper College's (Illinois) long-range planning model and Harcum Junior College's (Pennsylvania) institutional research function. A discussion of the advantageous characteristics of small 2-year colleges is appended. (KL)