Conceived by the Minnesota State Legislature, the Minnesota Educational Effectiveness Program is a school improvement and staff development program. Its participants perceive the program as a method for identifying areas of concern and for providing staff with the processes to effect change. As of September 1987, 328 Minnesota schools are in various stages of program implementation. This report summarizes the program's major activities and accomplishments during the 1986-87 school year, including (1) the use of grounded theory methodology to explain the program's operation; (2) development of a student achievement results database and accompanying test battery composite score; (3) no pattern of statistically significant change in baseline test scores for tested grade levels (except grade 9) at the research and development sites; (4) positive changes occurring at the R & D sites; (5) emerging concerns regarding program evaluation; (6) the importance of depth of participation; (7) identification of the principal's role and level of training as important school improvement success variables; and (8) expansion of the program to develop greater local support for schools. The report recommends that (1) the test results database be developed and expanded; (2) regional facilitators work with sites in using the formative evaluation process; (3) educators at all levels recognize variables affecting a school's success in implementing an improvement program; (4) state-level staff clarify roles of regional and local coordinators and encourage networking between the two groups; and (5) state-level staff and the program's advisory task force constantly explore alternatives and components enhancing the program's development. (MLH)