This guide was developed to provide local policymakers and program managers with an approach for using performance standards as a tool for reviewing and improving performance of Job Training Partnership Act (JTPA) programs at the local level. The guide is keyed to the Program Year (PY) 1990 U.S. Department of Labor adjustment methodology for activities beginning July 1, 1990. The guide is organized in four sections. Section I, an overview of performance standards, discusses the evolution of the standards and the rationale supporting them. Section II details a systematic approach to obtaining comprehensive baseline data on local performance, an analysis of the performance of specific activities and contractors within the Service Delivery Area, and an analysis of performance trends. Section III describes three approaches for improving performance: (1) the oversight response, which identifies probable causes of poor performance; (2) the planning response, which provides tools to examine new strategies and approaches that will improve performance; and (3) the follow-up response, which reviews strategies related to the new postprogram measures. Section IV summarizes the key issues related to planning and managing with performance standards. Sixteen worksheets for report summaries or charts are included in the guide. (KC)