This report gives a brief history of a differentiated staffing (DS) and outlines the major differences between horizontal and vertical differentiation. The Temple City model provides an example of vertical differentiation, while the Top of the World Elementary School plan is given as a model of horizontal differentiation. Obstacles to DS implementation, arising both from the objections of groups of people and from the nature of organizational change, are outlined. The various claims about the cost of DS programs are examined, and the report observes that a DS program could cost about the same as, or a little more than, a conventional program once it is implemented. The report contends also that the shared decisionmaking characteristic of DS programs could strengthen, rather than weaken, the principal's role in a school. A 53-item bibliography is included. (Author)