In recent years, new economic pressures have been placed on community colleges as a result of increased expectations for accountability on the part of governing bodies and the public. In responding to these pressures, colleges must consider new approaches to management, while the tools and approaches developed in private industry can provide guidance. The organizations that have risen to the forefront of American private industry have done so primarily through the implementation of a continuous improvement management philosophy. Quality improvement is a process predicated on a long-term organizational commitment to fundamental change, which requires a high level of commitment and strong direction. This process is based on management by data, used to analyze the health of the organization, identify potential problem areas, and measure success or failure. Basic tools for collecting data include the following: (1) the Deming Plan-Do-Check-Act cycle, which helps identify potential areas of improvement and test potential remedies; (2) run charts, or graphs of system outcomes over time that can help alert users to a need for corrective action; (3) trend charts, which allow users to see long-term movement and forecast future performance; and (4) flow charts, or graphic descriptions of the steps involved in any work process. Other management tools include program reviews and evaluation and cost/benefit analyses. Contains 10 references. (HAA)