This document is intended to assist senior managers and governors of colleges in the United Kingdom that are faced with serious difficulties. The first section provides an overview of how the issues of college recovery were handled under the Further Education Funding Council. The second section examines crisis and recovery in corporations and outlines a generic process for organizational turnaround that consists of the following steps: (1) crisis stabilization; (2) leadership; (3) stakeholder support; (4) strategic focus; (5) organizational change; (6) critical process improvements; and (7) financial restructuring. The third section presents six case studies of colleges that have successfully managed recovery. The case studies consider the unique features of the institutions profiled as well as the general lessons to be learned from each case. Section 4 offers guidance on preparing a college turnaround strategy. The following steps in turning a college around are detailed: (1) recognizing the crisis; (2) stabilizing the crisis by taking control of all expenditure; (3) analyzing what has gone wrong; (4) making management changes; (5) managing stakeholders; (6) identifying strategic options; (7) planning recovery; and (8) delivering recovery. A list of 10 points to consider in drawing up an action plan for a college's recovery is appended. (MN)