This handbook is designed as a process approach to competency-based adult education (CBAE) implementation in the areas of management, assessment, guidance, and instruction. Each component also addresses cultural considerations. The guide is organized in five sections. The first section is an overview of CBAE that explains the reasons for using CBAE, defines it, explains why California mandated CBAE, and gives some suggestions for changing to CBAE. In the second section, the key elements of a CBAE management system are detailed and the key managerial tasks and responsibilities for establishing and maintaining CBAE instructional programs are outlined. The third section focuses on assessment, including characteristics of assessment steps in setting up a student assessment system, four components of a student assessment system, the role of the assessment development team, resources for assessment, and cultural considerations. In the fourth section, the functions and tasks of guidance personnel in CBAE are explored, while the final section focuses on CBAE curriculum design; assessment and instruction; recordkeeping; selection and adaptation of instructional materials for CBAE; specific suggestions for CBAE teaching in the areas of adult basic education, English as a second language, and vocational English as a second language; and cultural considerations in CBAE instruction. Appendixes, comprising half of the guide, include samples of materials from various CBAE programs. (KC)