The school superintendent for Duval County (Florida) describes his experiences in developing a school-based management organizational structure. The following elements are involved: (1) funds are allocated to schools based on needs of children in schools, (2) specific educational objectives for a school are set by people associated with the school, (3) decisions on how funds for instruction are to be spent are made in the school, (4) organization of instruction is determined at the school level, and (5) parents participate in school decision-making. The superintendent made a commitment to the school board and administration that principals would be "front line decision-makers" in the system. This commitment required a reassessment of each principal to determine competence, enthusiasm, commitment to system goals, and flexibility to change. (Author/MLF)