The Title III program of the Elementary and Secondary Education Act called PACE (Projects to Advance Creativity in Education), is designed to encourage school districts to develop imaginative solutions to educational problems; to utilize research findings more effectively; and to create, design and make intelligent use of supplementary centers and services. Primary objectives are to translate the latest knowledge about teaching and learning into widespread educational practice and to create an awareness of new programs and services of high quality that can be incorporated in school programs. This document presents a process by which improvement in the educational enterprise may be sought in a continuing and systematic fashion. Among the topics that are covered are the following: identifying critical needs, steps in applying for a grant, project development and preparation of project application, processes of administration, fiscal control and management, evaluation, dissemination, and final report. The heart of the PACE program is in its provisions for bringing a creative force to the improvement of schools and for demonstrating that better practices can be applied. Since the innovative and exemplary programs supported by PACE are intended to contribute substantially to educational improvement, priority in funding is given to those projects which offer the greatest promise of solving persistent problems, thereby advancing educational excellence. (Author/AM)