General directions in evaluating U.S. colleges and universities and problems that might be encountered in evaluating institutional quality are discussed. Eight guidelines for assessing institutional quality are also offered. Appendices consider the following five institutional evaluation approaches: educational audits, external consultant reviews, self-studies for accreditation, self-studies for institutional purposes, and state and federal reviews. Included are a categorization of 45 evaluation statements for an institutional evaluation that cover goals and objectives, student learning, faculty performance, academic programs, institutional support services, administrative leadership, financial management, governing board, external relations, and institutional self-improvement. Suggestions for assessing institutional quality include: making theoretical and operational plans for institutional evaluation compatible with the organizational ethos; communicating an overall plan for enhancing institutional quality; linking models and plans for evaluating institutional quality with resource allocation; and making institutional evaluation studies action-oriented, with plans for moving reports-to-action. (SW)