This report reviews the implementation of Project Creating a New Approach to Learning (CANAL), part of a court-mandated desegregation plan in Chicago (Illinois), at the end of its first two years. CANAL's goal was to train the constituent representatives of the public schools to engage in shared decision-making and to develop organizational structures that incorporate the community in the organizational and educational processes of the schools. Implementing a school-based management (SBM) approach seemed to be the best way to improve academic achievement. However, project staff did not develop an evaluation design that would make it possible to evaluate problems in implementing SBM or measure the extent of its impact. Furthermore, baseline data were not collected on the 41 project sites. These problems of inadequate design were compounded by the following implementation problems: (1) most core planning teams (CPTs) did not include the specified constituencies; (2) parents and community members, the most important members of the CPTs, were most likely to be absent from the teams; (3) the second year of the project was characterized by further erosion of attendance at training; (4) the development of Local School Councils (LSCs) at the beginning of the second project year meant that the schools had two SBM teams; and (5) the project proposed to provide training for LSC members to assure cooperation with the core planning teams, but the great majority of them did not attend the meetings. (FMW)