This report proposes 25 guidelines that should be considered in making productivity improvements in the following five key areas: (1) instruction, (2) research and public service, (3) overall academic functions, (4) administrative functions, and (5) state policies affecting higher education. In some cases, data are presented that illustrate the kinds of analyses that the Board of Higher Education, the Illinois Community College Board, governing boards, and campuses will have to complete in order to make decisions addressing these issues. Recommendations for institutions to consider cover such issues as the following: institutional capacity in relation to student and occupational demand; the breadth and quality of instructional units; program costs; scope of offerings; staffing patterns and faculty workloads; academic support and technologies; operational efficiency; and the effectiveness of state-level processes, reporting, and regulatory requirements. Statistical tables provide information that includes: undergraduate program-major enrollments and degrees awarded for 1988, 1989, and 1990; state and external support figures for research and public service for fiscal year 1990; undergraduate enrollments and costs by field for 1988, 1989, and 1990; occupational status of community college completers from selected occupational programs for 1990; and public university expenditures from state appropriated funds for administration and support functions in relation to instructional, research, and public service expenditures for 1990. (GLR)