The school district decentralization process is described in this guidebook, which focuses on the administrator's role in implementation. Three chapters are organized around the three phases of decentralization--exploration, trial, and commitment. Each phase is examined in terms of the real-life experiences of administrators and other participants. Chapter 1 discusses decentralization's impact on teachers and principals; its main features, such as horizontal/vertical dimensions and organizational and political forms; reasons for implementation; and strategic decisions. The trial stage, discussed in chapter 2, involves development of a district policy, an allocation method, a budgeting process, and an accountability system. The pilot school program and major role changes involved and the issue of sabotage are also examined. The final chapter on commitment offers suggestions for further implementation. Fourteen tables and 8 figures are included. (19 references) (LMI)