The purpose of this project was to demonstrate the value of establishing an operations research program within a state vocational rehabilitation agency. To reach the objectives of the project, a research director was employed in the South Carolina Vocational Rehabilitation Department (1) to stimulate and coordinate research activities throughout the state by (a) organizing a panel of research consultants, (b) conducting research conferences, (c) stimulating research by personal visits, and (d) providing consultation to other agencies; (2) to encourage the utilization of research findings by (a) conducting a systematic review of pertinent material and (b) communicating significant research and demonstration results to field personnel; and (3) to conduct research and demonstration activities within the State Vocational Rehabilitation Program through (a) statistical and follow-up research and (b) operations research studies of rehabilitation programs. The program proved to be of value particularly in developing strategies for utilizing research findings in program and staff development. The value of such a program is influenced by the interest of the administrators and supervisors in improving their programs, the level position held by the Research Director, his prior positions and rehabilitation experience, his understanding of personal and organizational growth, his set of interests and values, and the relationships he develops with the training staff, state and local supervisors, service personnel, and consultants. (Author)