This guide provides assistance in using two primary management tools--the performance standards and performance-based, fixed unit price contracts--to achieve satisfactory results in Job Training Partnership Act (JTPA) programs. The guide is organized in six chapters. Chapter 1 reviews the original purpose of the JTPA and introduces the investment portfolio management concept as an appropriate approach for management of JTPA programs. In chapter 2, the importance of an effective management process in achieving good results is discussed. Chapter 3 focuses on the elements of the local planning process, the relationship of planning decisions to the performance standards and local goals, and the linkage between planning decisions and contract specifications. Chapter 4 describes a process, with examples, for defining performance expectations for individual activities and program components. Chapter 5 discusses some of the considerations that are involved in establishing a monitoring system and structure of rewards/sanctions that will guide and motivate performance in a direction responsive to the needs of the recipients and of employers. The final chapter summarizes the significant principles discussed in the previous chapters and provides suggestions for immediate action. Appendices present alternative approaches for adjusting the fixed unit payment and three sample performance-based contracting tools. (KC)