A revision of an earlier rough draft entitled "Local School and System-Wide Planning," this report outlines the planning process. Flow charts and a narrative description of a Central Office and Local School Planning Cycle are provided. This cycle consists of the following steps: (1) superintendent's statement on the implementation of plan cycle, (2) identification of local/department planning team, (3) local/department needs assessment, (4) comparison of local and central office needs assessments for compatibility, (5) local/department goals and objectives, (6) determination of compatibility of central office and local school goals, (7) review of alternative programs, (8) determination of compatibility of alternative strategies with central office/local programs, (9) program choices, (10) program evaluation design, (11) the plan, (12) funding, (13) formative evaluations, (14) program modifications, (15) years of specified planning period, (16) summative evaluation, and (17) re-initiation of entire process for purpose of reviewing all process steps. Definitions of the terms used are provided, and questions and answers concerning the planning process are included. (DB)