Designed to clarify issues related to the definition and implementation of strategic planning, this paper presents an an examination of several themes that are central to the practical side of planning and budget development. Introductory material considers the utility of the strategic planning approach and points to three areas of higher education finance with particular relevance to strategic planning: planning methods, cost formulation, and projection. The next section considers the relationship between perceived institutional mission and sources of funding and the impact of this relationship on the determination of management policy. Next, the paper discusses the components of cost analysis that are relevant to planning and operations, using student financial aid and personnel management as examples. The final functions of administration considered relate to projecting future requirements and resources, modeling for the efficient and effective allocation of resources, and using simulations for contingency planning. Examples of organizational stress that can be alleviated through a strategic planning approach are discussed in relation to retrenchment, ensuring access to management information, and budgeting. Concluding comments stress that enhanced access to planning systems, as a component of strategic approaches to management, must be seen as central to a sound institutional response to the economic uncertainty of the current period. (EJV)