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A grounded theory approach is used to investigate the process instructors undergo to create online courses. In this study, 14 instructors who created online courses for four-year universities and colleges were interviewed about their experience developing and designing online courses. It was determined that participants begin the process with objectives and/or with existing course outlines, typically taken from online and face-to-face courses. Next, the instructors structure the course and chunk content. The instructors interviewed rarely use formal instructional design principles, but their design tasks show a striking similarity to those formalized in the ADDIE model. Student feedback (evaluation) motivated the instructors in their development efforts after initial course delivery. The study discusses practical implications and suggests opportunities for future research.