Theory and implications for methods of assessing administrative performance in simulated exercises are presented. The rationale is given for the following: (1) developing simulated exercises; (2) measuring behaviors exhibited during the exercises; (3) training evaluators; (4) combining information across exercises; and (5) storing and retrieving specific information on both dimensions and behavioral descriptors to facilitate research. Procedures developed by the Center for Assessment of Administrative Performance to assess and report on the abilities and skills of educational administrators are described. The procedures allow results to be used for diagnostic purposes as well as for selection. Exercises developed by the Center in 1986 and 1987 and field tested with 35 principals and interns included three exercises to assess specified characteristics, abilities, and skills of principals: instructional analysis; in-basket items; and case studies. In 1987 and 1988, three additional exercises were developed and similarly tested: conflict resolution; selection and interviewing; and leaderless group discussion. Current uses of the exercises involve having each participant respond to the six exercises over 2 days. Scoring requires 18 to 24 evaluators using developed scoring guides. Group and individual score reports can be generated, making a variety of comparisons possible. Three appendices provide information about the assessment instruments. (SLD)