This handbook is intended to assist governing boards of higher education institutions in using key indicators (quantitative or qualitative information that describes the condition of some aspect of the institution) to: evaluate the strategic position of their institutions, compare the institution to its peers, and monitor changes in its condition over time. The handbook is also intended to help trustees identify specific areas requiring the board's attention and to suggest the ways that key indicators can be used to make policy-level decisions. The following chapters are presented: (1) "Improving Decision Making"; (2) "Critical Decision Areas" (financial affairs, enrollment, institutional advancement, human resources, academic activities, student affairs, intercollegiate athletics, physical plant and equipment, auxiliary activities, and institutional mission) and "Critical Decision Areas and Strategic Issues Considered in Chapter 3"; (3) "Key Questions and Indicators" (for each of the critical decision areas); and (4) "Effective Use of Key Strategic Indicators" (a recommended procedure, collecting and analyzing the data, and roles and responsibilities of board and staff). Ten inserts are included at the back of the book that restate the critical decision areas, strategic issues, questions, and key trends and indicators; they are intended as aids to the reader and for later duplication and use. (KM)