The report shows how a management information system (MIS) can be developed through certain steps taken in an orderly manner. These steps are grouped into the phases of recognition, initiation, review and evaluation, overall MIS design, detailed design for each module of the master plan, and achievement of operational status. The first phase, recognition, means that senior management must recognize the need for a MIS and that this need must be impressed on all levels of authority. Action arising from this recognition will result in a broad statement of the perceived problem and a commitment of resources to initiate MIS development, with some indication of the eventual total commitment of resources to this project. During the initiation phase, a project team is organized, the scope of the project is defined, goals are established, planning for the next phase occurs, and management commitment for the next phase is obtained. The third phase, review and evaluation, involves analyzing the environment for the MIS, analyzing current systems, defining requirements and problems in the MIS, defining the purpose and objectives of a MIS, analyzing strategies, preparing a master plan and then reviewing it, and obtaining management's commitment to the master plan. In the overall MIS design phase, systems development is initiated. Then the defined MIS is refined and converted to a conceptual design. The conceptual design, in turn, is reviewed by a third party. The master plan is refined, and the final conceptual design is reviewed. The next phase includes the completion of detailed MIS specifications, a module review by a third party, the establishment of final resource requirements, and a management review. The final phase encompasses developing the module, completing user training, planning and conducting system acceptance, and evaluating the module 6 to 12 months after implementation. The report also reviews auxiliary considerations, such as documentation and security. The report includes diagrams, a bibliography, and appendixes on methodology for identifying information and standard system documentation, and a comment sheet. (Author abstract modified)