This guide offers an objective framework for deciding whether self-operation or contract management (also known as privatization or "outsourcing") will best serve the goals and objectives of an individual institution of higher education. The guide is organized into four chapters. Chapter 1 briefly outlines the evolution of contract management in higher education and presents six real-life scenarios in which institutions faced the decision. Chapter 2 presents an approach that can be used by managers of any functional area as well as an institution's chief business officer to identify, assess, and interpret the many issues that will need to be considered before choosing the right management approach for an institution. Chapter 3 shows how the principles previously explained can be applied to facilities, bookstores, dining services, administrative computing, child care, and security. Chapter 4 revisits the six case vignettes of the first chapter and reveals the operating model that was selected for each case and why. Appendixes include sample contract sections, building the evaluation criteria, and a directory of higher education management associations. (JB)