The basic aim of this report is to suggest a strategic framework for the transformation of manpower placement services (MPS) from a reactive, precarious organization into an active and vital service delivery system. The main characteristics of MPS are analyzed from a systems perspective and organizational resources and structure of services for the hard to employ are surveyed. It is pointed out that, following the systems perspective, changes in the supportive subsystem will not produce immediate results in the service patterns but that new operative goals and service technology are needed for both clients and employers. The basic change strategy should be to expand the operative goals of the agency with the twofold aim of improving its services and increasing its importance in the community. An intelligence system is proposed which would fulfill three related functions: to monitor the external relevant environment of the agency, to provide an internal audit of staff and client activities, and to evaluate the agency's outputs. The effectiveness of MPS is dependent upon its ability to develop a multilevel service delivery system that breaks away from the narrow conception of matching persons with jobs. (Author/SA)