A formative evaluation was conducted of two elementary schools that have been engaged in the School/Community-Based Management (SCBM) process in Hawaii. The evaluation process was aligned with the SCBM philosophy, which promotes shared decision making, shared responsibility, and collaboration. Stakeholders contributed to the evaluation, which focused only on SCBM implementation processes. Student outcomes will be addressed in the fourth year of implementation. The project can be summarized by the key success factors that were identified and demonstrated in both schools, which are successfully implementing SCBM. One of the fundamental conclusions is that in the very early stages of introducing SCBM the principal is instrumental in initiating the process. During the implementation of SCBM the following were identified as key success factors: (1) shared vision; (2) open communication; (3) respect; (4) trust; (5) collaboration; (6) empowerment; (7) operational guidelines; and (8) continued support for change by the district and state offices. The separate case studies for Wai'alae Elementary School (Honolulu district) and Ma'ili Elementary School (Leeward District, Oahu) are included. Seven tables and one figure illustrate the evaluation, and a staff questionnaire is included. Five appendixes include lists of interviewees, interview protocols, and a team effectiveness inventory. (SLD)