This book presents the story of small colleges in American higher education and how they can best respond to meet contemporary challenges. Chapter 1, an introduction, discusses the importance of the topic, small schools' strategic strengths, and market and institutional realities. Chapter 2 looks at the history of the small liberal arts college, and the challenges of the current difficult times, the preservation of a school's unique character, and the implication of yielding to market pressures. Chapters 3 and 4 present a case study of Keuka College (New York), a small college that successfully recovered from near collapse in the early 1980s. Led by an aggressive new president, over the past 10 years it has reached its highest student enrollment ever and completed its most successful capital campaign. Chapter 5 looks in general at what successful schools are doing to celebrate and capitalize on their rich history, heritage, and uniqueness through sound strategic decision-making practices resulting in a stronger market position. Chapters 6 and 7 provide a framework for analyzing the external and internal variables which affect the health and welfare of all colleges and universities. Chapter 8 focuses on institutional decision making and argues for an effective combination of strategic planning and participatory management. Includes an index. (Contains 190 references.) (JB)