This document is a chapter in "The Principles and Practice of Educational Management," which aims to provide a systematic and analytical introduction to the study of educational management. The structure of the book reflects the main substantive areas of educational leadership and management, and most of the major themes are covered in the volume's 19 chapters, of which this is one. This chapter examines two types of extra-institutional partnerships. The first type is partnerships between educational institutions and their communities, especially parents. The second is educational partnerships based on links between educational institutions and the private sector. In the first type, the development of partnerships between schools and parents as individual family units representing their child or children represents a complex and sometimes controversial aspect of state intervention in education. Since parents focus on what is best for their own children and teachers concentrate on school performance as a whole, conflicts are inevitable. But if parents are perceived as productive partners and held responsible for the school's performance, the partnership can be seen as one of shared risk. The progress of all students becomes the parents' responsibility. Partnerships with the private sector focus more on supporting the management of schools and colleges. These partnerships involve the establishment of formal or informal cooperative relationships between educational agencies and profit-making and non-profit-making organizations of interested parties. These partnerships involve the implementation, but rarely the formulation, of policy. Both types of partnerships are broad in scope and detailed in application. Many of them are more or less located within the framework of market forces operating within education. (Contains 42 references.) (RJM)