Expectations and roles of institutional researchers in higher education institutions are considered, as well as the question of what a research office should expect from its institution. A performance monitoring system for the assessment and continuous improvement of institutional research is also proposed. Ways that institutional research can be effective and have impact on policy formation and decisionmaking at the highest levels of the institution are identified. Sponsors and consumers of institutional research should be able to expect the following from its practitioners: technical competence, professional integrity and ethics, contributing to policy relevance, effective communication, high productivity, initiative, making a positive impact, self-evaluation and ongoing improvement, humility, and a sense of humor. In order to deliver on the expectations of its users the institutional research should expect the following from its institution: regular interaction with policymakers; access to campus databases; appropriate technology, including access to the Internet; adequate staff; professional development opportunities; and recognition by senior management. To promote efficient and effective office performance, a system is needed which incorporates explicit goals, assessment tools, a project management system, publications to disseminate office findings, and staff recognition and incentives. Each of these system components is described. (Contains 14 references.) (SW)