Information to promote assessment of organizational effectiveness in colleges and universities is presented, along with an exercise to rank the effectiveness of 10 institutions. The exercise uses three types of criteria to indicate effectiveness: subjective ratings, data about students and activities, and institutional capacity and financial health. In ranking the colleges, the respondent is to generate three rank-order lists based on the perspectives of three different individuals: a high school senior who is choosing a college, a highly qualified Ph.D. who is selecting a college as an employer, and an official of a foundation who is looking for a college to fund. Information is provided on: questions to ask and ways to measure organizational effectiveness in higher education; factors affecting job attitudes; advantages of focusing on faults instead of on indicators of institutional effectiveness; a procedure for assessing ineffectiveness; fault tree analysis; the nominal group technique; computing a strategic path; nine dimensions of organizational effectiveness; a comparison of effectiveness for declining, stable, and growing schools; and a comparison of effectiveness of unionized and nonunionized institutions. (SW)