A large number of educational institutions have become static, rigid, complacent and change-resistant. This is because they have not paid adequate attention to their own internal culture, values and processes from the beginning of their existence. They have also not established any mechanisms for self-renewal or competency development HRD of their staff. This paper attempts to highlight the need for institutionalising various processes and mechanisms that may make educational institutions more dynamic, purposeful, cost-effective and effective. Paying attention to goals, values and institutional culture; conducting self-renewal exercises periodically; paying attention to internal HRD; enhancing accountability through individual activity plans, performance appraisals and participant evaluation procedures; establishing and renewing environmental linkages and having courage to liquidate defunct units and departments are some of the ways in which education systems can be strengthened and made effective. The paper also presents a check-list of institution building and self-renewal capabilities of educational institutions.