This study developed and tested a method to determine how well each two-year institution in a state system is in preparing students for the successful completion of four-year college study and how successful each four-year institution is in graduating students from the two-year colleges that transfer to it. The study used data provided by the State University of New York (SUNY) to illustrate the methodological approach developed. The database represented 36 SUNY community colleges and colleges of technology and 19 four-year institutions. For expository purposes, the simplest statistical model, a system of linear probability equations was developed and estimated using ordinary least squares. Refinements could be added, but the model as developed illustrates the approach. Data are not reported for the institutions used in the analysis; the study is meant to illustrate the methodology, and as formative evaluation, not as a rating of the effectiveness of institutions. (Contains 8 tables and 22 references.) (SLD)