A guide to the practice of institutional research and planning in American higher education in the 1980s is presented. Attention is directed to the impact of current changes in the external environment on higher education and implications of these changes for institutional research and planning. Topics include national issues crucial to the future of higher education; the likely consequences of specific demographic, economic, social, and political trends; and the possible effect of changing policies of federal and state governments. Strategic planning approaches and the development of master plans are examined that illustrate how institutional research and planning help articulate techniques in two critical areas of strategic planning for colleges and universities: forecasting enrollments and identifying community and regional education needs. The uses of institutional research on academic problems such as assessing students' needs and planning new programs are considered. The issues of resource allocation and how to measure the effectiveness of resource allocation in achieving institutional goals and meeting academic needs are addressed, as is the relation between offices of institutional research and planning and other management units. Recommendations are offered regarding organizational and operational modes appropriate for four major kinds of institutions: community colleges, small four-year colleges, medium-sized colleges and universities, and complex universities. (SW)