School-based management (SBM) is a strategy to decentralize decision-making authority to the individual school site. This document describes the principles of SBM, of which devolution of authority is the fundamental concept. Local control and shared decision-making are manifested in five educational operations: goals, budget, personnel, curriculum and instruction, and organizational structures. This report describes changes in the roles of state policymakers, district administrators, principals, and teachers. The five conditions necessary to facilitate SBM include readiness, time, professional development, adequate material resources, and support. In addition, support from all educational stakeholders, from good working structures and from public legitimization are all necessary for the successful implementation of SBM. In conclusion, school-based management: (1) is a difficult intervention to get under way; (2) creates additional administrative burdens for teachers; (3) offers hope for improving certain dimensions of schooling; and (4) does not, in and of itself, lead to improvement in student learning. (LMI)