Background and Purpose. Academic departments of physical therapy may be familiar with strategic planning, but may not be as familiar with a formal process of environmental scanning, which is a component of strategic planning. Organization theory suggests that individual units of academic institutions often face different environmental forces than the broader institution. This may be especially true for professional education programs such as physical therapy. This article explains why each academic department of physical therapy should perform its own environmental scanning, and describes a formal environmental scanning framework that was applied to an academic department of physical therapy. Case Description. The formal environmental scanning process was performed by faculty of an academic department of physical therapy. The process included identifying key performance indicators and scanning for threats and opportunities in the professional environment, the competitive environment, the institutional environment, and the general higher-education environment. Threats and opportunities were analyzed in regard to their impact on programs key performance indicators. Program strengths and weaknesses were identified as well as program stakeholders. A cross-impact analysis was performed that determined the impact of each finding from the scanning process to the predetermined key performance indicators. Outcomes and Discussion. Strategic directives and an implementation plan were derived from the outcome of this analysis. Additionally, documentation of the broader strategic planning process allowed the authors to identify problems and opportunities and suggest solutions and implementation for program change. Some empirical evidence exists to suggest that environmental scanning enhances organizational performance. The model followed in the case formalizes an already informal process for most academic units. One limitation is the time involved to implement the process. A benefit is that the process documents program planning and improvement procedures, a requirement for accreditation. Conclusion. This report illustrates that strategic advantages may be recognized when an academic unit engages in a formal and discipline-specific environmental scanning process. The model used assures that the environmental scanning process is comprehensive, is tied to actual performance, and is documented. Key Words: Environmental scanning, Strategic planning, Academic planning. BACKGROUND AND PURPOSE In order for most organizations and institutions to thrive, they must respond to the forces of change in their environment. Organizations must often contend with market and competitive forces; changes within a particular industry; or changes in the political, social, or economic environment.1 Institutions of higher education must deal with these changing environmental forces as well. However, the forces that impact the broader institution of higher education may be quite different than the forces that bear down upon the individual units within an institution of higher education. This difference illustrates the need for academic units to individually respond to the forces in their specific environments. The formal process of analyzing environmental forces that impact organizational performance is known as environmental scanning. Environmental scanning is a managerial activity that involves gathering information about the external environment of an organization in order to assist in planning.2 Environmental scanning is typically associated with strategic planning. It is not uncommon for academic departments to be involved in some form of strategic planning. However, it may not be as common for academic programs to engage in a formal environmental scanning process. The purpose of this report is to elucidate the need for individual academic departments of physical therapy to engage in environmental scanning, and to discuss a framework that may guide departmental environmental scanning. …