Dear Colleagues and Friends: In October, Anne and I announced that we would be stepping down from our leadership position with the University. We leave behind us an institution that is stronger, more vibrant, and more diverse than at almost any time in its history. Michigan is well placed to respond to the difficult challenges that will come in the next few years. Yet a strong foundation is not enough. To respond to a changing society, our entire community must join together in a wide-ranging dialogue about the future of Michigan. This monograph is another in a series meant to help begin such a conversation, a conversation that must continue beyond my tenure as president. This document does not prescribe solutions; instead, I have mapped out some of the terrain we will face as we grapple with the educational challenges of a rapidly changing world. As I hope this document shows, one of the most fundamental characteristics of Michigan has been our ability to evolve while remaining true to our core values of learning, intellectual freedom, and social justice. Our challenge, as we stand at the edge of the twenty-first century, is to continue to find ways to adapt to the realities of tomorrow while retaining the educational spirit and commitment that has made us "The Leaders and Best." Sincerely, James J. Duderstadt President