The ongoing process of developing new academic programs is slow, and the process by which this gradual reshaping occurs involves all aspects of the institution of higher education. The overlap of innovation in organizations, strategic planning, and program evaluation is important in this development. Administrators, trustees, and faculty members need to understand how institutions are being transformed in today's environment. Suggestions for improving the process of developing new programs include creating and maintaining a climate for innovation, bringing innovative people into the institution, developing a selective strategy, and developing the means to look outward. Four sections look at the following: (1) organizations and innovation (from social change to individual creativity, the process, people, and product involved in innovation, and strategies for innovation); (2) academic program planning (definitions and delineations, the planning environment, program review, program discontinuance, the development of new academic programs); (3) decisions about the development of new academic programs (major considerations, internal strengths and capabilities, external needs and opportunities, program and priority decisions, and program approval at the system and state levels); and (4) improving the process (the existing vacuum, factors for success, and practical prescriptions). An appendix contains an abridged procedural checklist. Contains approximately 180 references and 10 tables. (SM)