Following a period of reform, unrest, and protest during the 1960's and 1970's, the Canadian penitentiary and parole services were merged to form the Correctional Service of Canada. In 1978, the service developed a modular planning system to improve policy development methods. The system consists of a long-term planning component which develops plans for a 20-year period, a medium-term planning unit developing plans up to 10 years, and a short-term planning unit for only a 12-month period. The long-term unit consists of two components: a strategic planning committee consisting of representatives from universities, a judge, a representative of the service, a member of the Canadian Association for the Prevention of Crime, and the policy division with the correctional service itself. Medium-term plans include 5-year planning initiatives consisting of an operational plan containing system management change strategies and an accommodation plan focusing on updating and providing for new facilities. Program plans developed for 3-year periods and 10-year accommodation forecasts also are included in this category. Short-term planning consists of an annual operational plan, an annual program forecast, and submissions for Federal financial authorization. Monitoring is accomplished by evaluation and analysis activities. A 5-year evaluation plan is under development; recently initiated evaluation activities emphasize objectives measurement and increased managerial accountability. Analysis will focus on identifying financial and operational difficulties and on proposing alternative courses of action. In the 2 years that the system has been in effect, an acceptance of structured means for processing new initiatives through the system has developed, together with a feeling that all organizational levels affect future plans in the service. There has been a corresponding increase in staff coordination at the national level and in coordination between national and regional levels. Staff officers have realized the true meaning of resource limitations and have seen the need for managerial accountability and resource control. Finally, there has been a development of the ability to provide better response to external pressures. Charts are included.