This paper proposes and discusses, from a management point of view, application of specific outcome measurements to residential programs for mentally retarded persons and those experiencing long term mental health problems. These include: rate of restraint and seclusion; percentage of compliance with applicable standards; absenteeism/leave time usage rate for staff; client census; staffing allocation and ratios; minimum amount of active treatment; rate of protection from harm incidents; readmission rate and length of stay; internal professional review; and internal consumer/interested party review. Also identified are key client behavioral components such as level of development of socialization skills and the following four client related issues: (1) quality of life; (2) protection from harm; (3) active treatment; and (4) appropriate placement. The role of the facility manager in establishing an orderly system in which staff and clients work and live is stressed. Managers are encouraged to comply with standards, develop monitoring systems which are more stringent than those of external surveyors, develop systems to assure staff effectiveness, conduct an annual internal facility audit, and conduct random audits of specific areas of facility operation. (DB)