This report provides an overview and strategic planning study of the dairy herd improvement (DHI) system, concentrating on assessing current trends and conditions of the industry and how DHI organizations are structured within it. Information is provided for the principal DHI organizations to carry out strategic planning. Opinions from DHI managers provide an internal assessment of where the industry is headed and in what areas leaders need to plan to better position their organizations for the future. A strategic planning model is developed to analyze industry trends, define available strategies, and evaluate alternative directions DHI organizations can take as they strive to achieve organizational and systemwide goals.