A project was developed to improve vocational administrators' program management skills through diffusion of the cost-effectiveness analysis system which was developed at Indiana University-Bloomington. Specific objectives were (1) to summarize the cost-effectiveness analysis system, (2) to develop a conceptual framework for the system's diffusion and adoption, and (3) to conduct a statewide conference on cost-effectiveness analysis of secondary vocational programs. Based on a literature review, the educational change process was conceptualized as a problem-solving process; a research, development and diffusion process; and a social interaction process. A conceptual framework was developed for the diffusion and adoption of the cost-effectiveness analysis system. The conceptual framework for the diffusion and adoption of the cost-effectiveness analysis system will be useful in developing strategies for diffusion of the research and development products and in evaluating their impacts on educational change. In system diffusion some available methods were utilized and a statewide conference was conducted for Indiana vocational administrators. The statewide conference proved to be valuable in increasing vocational administrators' understanding of the system and in gaining support for its adoption. The conference's activities constitute the foundation of a national priority training workshop. (Author/CSS)