Strategic planning initiated by the recently created State System of Higher Education (SSHE) in Pennsylvania is examined. Components of the strategic approach found in the literature and dimensions generally considered critical for both strategic formulation and strategic understanding are considered. Attention is directed to the multicampus system as an organizational type and its past planning practices, and the specific historical and political context of the SSHE. Field observations from six days of planning from January through April 1984 are summarized, along with key events that followed. The plan, consisting of eight strategic direction statements, is also described. Of significance during the planning process were the interactions of the Board of Governors and the Strategic Planning Committee with the planning consultant and with other actors from the Central System Office. The committee included representatives from key stakeholding areas. The eight strategic direction statements provide a framework for the campuses and identity for the system. Since the completion of the first planning stage, a number of critical realignments have occurred within the system. (Author/SW)