This paper examines the effect of a federal agency's image on its creation, initial operation, and continuing activity. Focusing their attention on the National Institute of Education (NIE), the authors examine the origins of NIE's initial image, the utility of that image in securing congressional approval for its creation, and the relationship of the image to NIE's subsequent political and organizational difficulties. The quality of a new agency's environment largely determines the stability of its initial image, the authors argue. Agencies established in benevolent environments will retain their initial image longer than agencies established in harsh environments. However, revising an agency's initial image in response to the agency's "failure" will not necessarily lead to future "success." If the harsh environment is independent of the agency's actions, changing the agency's image will not produce a more benign environment. (Author/JG)