While rapid shifts in the composition of student populations and increased governmental demands for accountability have underscored the importance of institutional research (IR) in community college management, most adminstrative literature still conceptualizes IR as a cybernetic, neutral, data collection function initiated in response to the decision-making process. Yet if IR professionals are to contribute effectively to the college, they should be free to suggest the administrative implications of research data and to participate in the policy-making process. While the IR office should leave policy implementation to others in order to avoid conflict of interest with its function as a policy evaluator, the office should be placed in the administration under the president's office and charged with initiating research and evaluation activities, planning institutional mission and goals development, and conducting cost-benefit and market analyses. IR practitioners should be trained in educational research techniques and they must be able to work closely with other members of the administration, serve as a linkage between the college and external information sources, and cooperate with the business office in establishing performance criteria for goal-related budgeting. Only through this active role will IR offices prove their cost effectiveness and their value to the institution. (JP)