Outcomes of the local school-based management (LSBM) plan, implemented by the District of Columbia public schools in 1989, are presented in this report. The 17 participating sites included 2 senior, 3 junior, 1 extended elementary, 9 elementary, and 2 special education schools. Data gathered from structured interviews with 12 of the participating principals are the focus of this report. Findings indicate that LSBM's initial implementation was characterized by frequent changes in coordination and disagreement between the officers' and teachers' unions, becoming more productive and better coordinated in the last third of the school year. Principals considered meetings with central office administrators to be beneficial, providing opportunities for receiving information, networking, and giving feedback. They viewed the concept of the Direct Activity Purchase System (DAPS) positively, but were concerned about its restrictions. An outcome was an increase in staff development and awareness activities. Principals' concerns centered on the school/central administrative relationship, particularly with the operational divisions. Recommendations for improving LSBM include: (1) provision of a written policy statement of roles and responsibilities; (2) appointment of a central office administrator to facilitate and direct program implementation; and (3) coordination of professional development and training activities with ongoing school development/involvement initiatives. The interview guide is included in the appendix. (LMI)