Development of an instrument to measure baseline levels of applied Total Quality Management (TQM) practices in South Dakota before the introduction and dissemination of TQM theory to the state's educational leaders is described. Using the interpretation of Deming's 14 points that was developed by J. J. Bonstigl, a 115-item initial item pool was developed. Through a modified Q-sort procedure, items were examined by a panel of 15 judges for clarity and appropriateness to establish content validity. After sorting was completed, the 68 items remaining (approximately 4 per subscale) were pilot tested, using responses of 77 practicing kindergarten through grade 12 teachers from 12 schools in 6 districts. An analysis to establish reliability coefficients (Cronbach's coefficient alpha) for the 14 subscales and the total test revealed alpha coefficients (>.71) for 10 subscales and a total instrument reliability of .96. It was determined that two subscales need further development to strengthen differentiation within Mass Inspection (Deming point 3) and Elimination of Targets (Deming point 10). The subscale for point 4 will be discarded because vendor service and quality concerns are moot in a public enterprise subjected to the lowest bidder mentality. Two tables and an appendix of recommendations complete the discussion. (Contains 12 references.) (SLD)