This guide is designed to help South Carolina's school administrators implement the school improvement process mandated by the state legislature. The first chapter introduces the educational philosophy produced by the research on effective schools. Six indicators of effective schools (positive school climate, instructional leadership of the principal, emphasis on academics and basic skills, high expectations related to student achievement, frequent monitoring of student progress, and positive home/school relations) are defined and recent legislation affecting school improvement efforts is described. The second chapter discusses school improvement councils and their role in the school improvement process. Chapters 3, 4, and 5 review the essentials of the process itself. Chapter 3 covers needs assessment, suggesting instruments, audiences, and methods of interpretation. Chapter 4 explains the use of the assessment data in developing long- and short-range objectives. Chapter 5 focuses on the implementation of the school improvement plan, emphasizing monitoring, adjusting, and collecting evidence of the attainment of goals. Preparation of an annual school summary report is also covered. The sixth chapter briefly describes the relationship among the school improvement process, the district improvement report, and the district staff development report. The guide culminates with appendices that include a relevant citation from South Carolina's Education Improvement Act of 1984, the regulations governing school improvement councils and annual school and district reports, a timetable for submitting reports, and instructions for preparing reports. (PGD)