This study attempted to determine whether strategic planning would enhance a higher education institution's fiscal condition. It also systematically evaluated the extent of institution-wide strategic planning among private four-year postsecondary institutions in the United States. A definition of strategic planning and a conceptual framework based on rational decision-making theory guided the study's design. A mail survey of presidents of 873 private colleges and universities (106 responses) identified institutions that had engaged either in no, in minimal, or in intensive strategic planning. Tests of financial condition examined changes in financial strength, financial independence, tuition dependence, and liquidity. Analysis of variance and simple and multiple linear regression compared non-planners with planners and minimal planners with intensive planners. The study found no significant differences between the fiscal condition of institutions before and after planning began, between planners and non-planners, nor between minimal and intensive planners. On average, more positive (though not statistically significant) change in fiscal condition was experienced by the non-planning institutions. Tables of results are appended. (Contains 101 references.) (DB)