Considerations that can help colleges and universities develop institutionally specific strategies for planning faculty reductions are addressed. It is suggested that an institution can provide a fair and workable reduction plan if it: thoroughly explores alternatives to faculty layoffs; develops explicit standards and procedures for reduction planning; prepares to deal with legal issues involved; attempts to anticipate case-specific political factors that may affect the process; understands the importance of making data based decisions and makes sure that required information is collected; develops a comprehensive planning and evaluation process to deal with long-range concerns quickly and fairly; and appreciates how different types of institutions are affected differently by factors involved in the reduction process. Four basic policy determinations are required: a definition of financial exigency, standards regarding participation in the reduction decision, procedures for program cutback, and standards for evaluating personnel and programs in the review process. To accomplish these tasks the administrator who foresees faculty reductions should gather a competent and representative planning group. (SW)