A policy systems theoretical analysis of the problem of institutionalizing innovation in an organization is summarized in a flow diagram. The model is presented in terms of specific hypotheses, and then illustrated with a case of frustrated innovation, the 1968-69 crisis and strike at San Francisco State College. The model is set up (1) to help understand the process of innovation in an organization both in theory and practice, (2) to highlight turning points and stumbling blocks in attempts to innovate, and (3) to suggest guidelines for implementing change and managing crises along the way. The result should be of benefit to theorists, researchers, policy-makers and administrators. (Author/LBH)