Participatory management (PM) is discussed in this step-by-step guide that shows how PM can be made to work effectively on a daily basis in academe. Suggestions are offered for helping higher education administrators consult efficiently with representatives of campus groups--faculty, other administrators, advisory board members, policy council representatives, and others. Prescriptions are offered for overcoming potential PM drawbacks such as slowness of the decision-making process, faculty apathy in administrative matters, and different goals of the groups involved. The authors demonstrate how effective leaders can get all groups to work together for the common good of the institution, instead of for their own narrow interests; and illustrate the usefulness of participatory management in handling such current problems as budget reductions, faculty retrenchment, program termination, structural reorganization, and financial planning. Leadership skills needed to coordinate and conduct consultive processes are identified, along with the issues and problems with which participatory management is most successful, including those in crisis situations when prompt action is required. (LB)