Educational managers may benefit greatly from adoption or adaptation of Japanese managerial practices, such as "Theory Z," involving developing staff potential and the creation of new incentives. There are at least 17 things administrators can do to utilize the key tenets of Japanese management. These include allowing teachers to "stop the assembly line" whenever a student needs a more specialized learning plan, eliminating waste of materials and time, developing quality circles, improving the administration-teacher relationship, providing lifetime employment assurance, and developing a theme for each school. One of the most important Japanese approaches to management is the quality circle, a small group of workers who meet several times a month to solve common problems and improve the product. This approach can be successful in schools if implemented correctly. Specifically, administrators must (1) view quality circles as part of an overall management approach, (2) look beyond short-term benefits, (3) select people for the quality circle who work in the same area, (4) anticipate difficulties from teachers' unions, and (5) be aware that each particular quality circle functions in a unique way, as well as consider other recommendations. Japanese management principles have exceptional potential, but must be approached with careful analysis of their suitability. (JM)