Significant changes in the educational environment have inspired structural and functional redefinitions to increase institutional competitiveness. To flourish, colleges now must be able to respond quickly and effectively to change. They must be adaptive, flexible, responsive, and innovative, especially in their application of new technology. They must focus on workforce development as well as general education and develop human and technological potential in students. Colleges must respond to change holistically, using all aspects of the organization. Known as "discontinuity," this paradigm of change is new, and is characterized by four hallmarks: (1) a qualitatively changing environment for enterprises; (2) a need to redefine institutional capabilities; (3) a notable loss of effectiveness within traditional organizational structures; and (4) an increase in competitiveness for enterprises that design and apply new response strategies. To remain viable, colleges need to redesign their structures and functions to accommodate these changes, as well as recruit a more diverse client base. Ultimately, clients are the "raison d'etre" of educational institutions, and colleges must always provide the best products and services at a realistic cost to those who are eager for them. Appendices include visual aids for presentation of information. (EMH)