This model is based on the belief that all those affected by a competency-based high school diploma program should help formulate it. School systems should begin by considering two fundamental questions: (1) What competencies should all graduates possess? (2) How can these competencies be tested? The first step is the establishment of an advisory committee made up of teachers, administrators, students, and parents. Other competency-based programs should then be reviewed. The next step is asking six groups their opinions concerning the academic competencies seniors ought to have. These groups include community residents, teachers, students, high school seniors, and potential employers of graduates. A consultant can be hired to develop assessment instruments and sampling procedures. Using respondents' suggestions the advisory committee can identify program goals. A committee of teachers should then be appointed for each program goal area to specify competencies and construct valid performance indicators. The committee must also modify the curriculum to include the required competencies and set up a four-year testing program. The plan should then be offered to the public for comment and revision and finally submitted to the school board for approval. The competencies of current seniors should then be assessed as a pilot test of the performance indicators. (Author/JM)