Postsecondary institutions in the U.S. function in a high-accountability environment where quality, efficiency, and effectiveness are common policy and compliance themes. Accreditation has emerged as a vehicle through which the federal government, states, and accrediting agencies can hold institutions accountable. It is also a primary driver of various change initiatives including institutional effectiveness (IE), a measure of how well an institution achieves its mission and goals. Recent attention has been directed at this initiative, and data show that a high proportion of institutions fail to demonstrate compliance in this standard during accreditation reviews. This study explores if and how institutions build organizational capacity for their IE initiatives, what structures and activities are involved, and if these initiatives are sustainable. Research was conducted using qualitative fieldwork at three public research universities that demonstrated compliance in IE following a period of organizational capacity building. The study was informed by conceptual frameworks proposed by NACUBO (2005) and Toma (2010) on organizational capacity building in higher education institutions. It found that institutions built capacity in IE by adding assessment staff, improving assessment processes and procedures, and adopting new technologies. Study participants also expressed concerns for sustaining current initiatives related to the purposes of assessment, employee turnover, faculty commitment, unpredictable funding, and changes to accreditation. Implications for future research and campus leaders are emphasized.