Legitimate external groups that seek accountability for educational outcomes are identified, and attention is directed to choices for designing an institutional assessment, as well as principles to guide institutions' response to accountability demands. Appropriate domains of accountability include: (1) the authority of state government to regulate and govern public colleges; (2) the review of institutions by regional accreditation bodies; and (3) calls for individual colleges and universities to provide information to guide "consumer choice." Areas in which colleges must choose how to proceed with an assessment include: what to assess, how to organize the assessment, and the manner and extent to which assessment results are communicated. Principles that institutions can follow in their response to accountability demands include: respond visibly to domains of legitimate external concern, build on strength, and show action. Particular actions that institutions can undertake include: extending or initiating post-testing of basic skills, experimenting with new approaches to student evaluation within the regular curriculum, and making assessment a visible part of the curriculum and important administrative processes. (SW)