This paper narrates the experiences of a superintendent hired into Montgomery Township School District (New Jersey), an affluent, small school district with a history of labor relations problems. When hired in 1990, the new superintendent was confronted with seven pending grievance cases and the board of education's rejection of the annual school budget for the first time in 20 years. In the face of these problems, the superintendent and the Montgomery Township Education Association initiated school-based decision-making as an intermediate step to site-based management. Following a school climate survey, 25 percent of district staff members received training in communication and decision-making skills. Other efforts included: (1) the establishment of quality circles at each school to encourage staff to generate recommendations and participate in decision-making; (2) the Superintendent's Curriculum Advisory Council, comprised of staff, parents, and students, returned to its original purpose of providing curriculum and instructional recommendations as opposed to being a grievance council; and (3) advisory groups were formed to provide professional and nonprofessional staff opportunities to discuss workplace issues and recommend changes in district procedures. These efforts proved successful, as all pending grievances were settled within the district, follow-up school climate surveys reflected improved staff attitudes, and the board of education and district staff negotiated a 3-year contract. (LP)