This publication examines the situations in which school-based management has worked and, conversely, those in which it failed to meet expectations. It attempts to identify exactly what school-based management (SBM) is and what it is not. Information was obtained from interviews with researchers and practitioners, a review of literature, and a 1993 survey of administrators. Section 1 offers a definition of SBM, identifies criteria for making it work, and describes the historical and global contexts in which collaborative work environments develop. Section 2 illustrates how SBM is being implemented in eight different schools--successfully and unsuccessfully--and reviews both common barriers and gains. The third section offers a sampling of thoughts, tips, and strategies as they relate to the personal, interpersonal, managerial, and organizational issues necessary for effective implementation of SBM. The final section summarizes some of the major issues raised: (1) SBM is about embracing a new mindset; (2) authentic and effective SBM results from negotiating certain trends and issues as they apply to specific settings and situations; (3) there is no one model or best way; (4) eight criteria for determining school readiness for SBM include commitment, attitude, purpose, action, leadership, readiness, character, and steadfastness; (5) SBM may not be appropriate in some situations; (6) SBM has a rich heritage; and (7) SBM could result in changing the status quo. Contains 84 references. (LMI)