We have emphasized two major points with regard to the use of analysis in universities and colleges. Meaningful projects must be selected; eight potential studies were outlined in some detail. At the present time, expenditure of large efforts in implementing PPBS and CSM's is contrary to the direction suggested here. More attention must be paid to operational problems which can be solved without reorganizing the whole institution. Our second major point is related to the management approach that should be employed to support an analysis program. We have suggested how analysis can and should be monitored and controlled and how participation by all levels of management can be ensured. We believe that this approach will be more beneficial than a number of other directions currently being pursued.