This study focused on the process by which stated organizational goals of a State Department of Education were transformed into the organization's real goals. The purpose of the study was to identify and examine (1) the mechanisms operating in the organization which aided this transformation, (2) the organization's real goal, and (3) the effects of goal transformation on the organization. Data for the study were gathered from 52 interviews, personal data, and unobtrusive measures such as office records, travel records, and budgets. Analysis of data determined a group of 16 mechanisms which revealed the dynamics of the organization. The mechanisms, grouped according to common elements, determined the concepts of leadership, bureaucracy, accountability, and communication. The concepts combined with the mechanisms constituted the conceptual syndrome or the process involved in transforming stated goals to real goals in a State Department of Education. (Author/MF)