This handbook, the second volume in a series of three publications on distance education, presents guidelines on structures and strategies in organizations and the processes of materials development. A checklist of specific items is included for each topic addressed. The first guidelines are addressed to policymakers and senior administrators and cover distance learning systems models, the target clientele, distance learning processes and their resource allocations inter-institutional coordination, management of production and distribution, and extending the clientele and range of programs. The second set of guidelines was designed to assist in the preparation of distance learning materials, and uses excerpts from Volume III (Exemplar Materials) to illustrate some points. Topics include establishing needs, setting objectives, resources and constraints, materials preparation, validating or field testing, consultation, evaluation and revision of materials, and implementation. (LMM)