This report represents an in-depth analysis of one institution of higher education's response to a New York State Department of Education mandate on the establishment of performance based teacher education (PBTE) programs, and it focuses on factors involved in the development of a PBTE program viewed from the perspective of intra- and inter-organizational conflict. The methodology employed was interviews and the study of documents available from the institution. The questions, which served to organize the information dealt with the acts of the participants, the activities engaged in by groups, meanings attributed to the acts and actions, level of involvement of participants, relationship of individuals and groups, and the setting in the development of a CBTE program. Most of the conclusions of the study dealt with the strong impact of mandated change and its effect in generating conflict. The second area from which conclusions were drawn was in regard to the distribution and exercise of power. This study points up examples of the abuse, misuse, and misconception of power. The importance of the case study lies in its implications for educational leaders who seek to gain insight into some of the processes involved in organizational change. (MJB)