The importance of academic program review as the first step in the development of an institutional master plan is emphasized, and the benefits of developing an academic, data-based master plan are identified. The case of Sam Houston State University is used to illustrate the issues. Background information on the institutional milieu and the situation in 1980 are presented. Sam Houston State University determined that a systematic review of academic programs would guide the development of a new 20-year academic program and facility master plan. Development of the plan involved extensive analyses of historical data, academic programs, classroom and laboratory utilization, program productivity (in terms of degrees granted, majors and minors, and semester credit hours generated), and program costs, together with carefully researched projections of program potential. Broad-based involvement of faculty and administrators ensured maximum participation in the development and subsequent acceptance of the plan. Suggestions for other colleges include the following: keep in mind the role and scope of the institution and the individual programs, and decide upon the indices of "academic good health" for which the program will be held accountable. (Author/SW)