This reference manual guides users in developing or amending school improvement plans for the 1993-96 Performance-Based Accountability Program (PBAP) of the North Carolina Department of Public Instruction. The PBAP was established with the passage of the state's School Improvement and Accountability Act (1989). In addition to establishing a specific mission for the public schools, it provides incentives for school systems to move beyond state accreditation and to set higher standards for student performance. Participating districts may receive funds for differentiated pay for certain state-paid employees. A local education agency that participates in the PBAP must develop a 3-year school improvement plan, and even districts that do not participate are subject to the testing and reporting provisions of the legislation. The manual discusses program guidelines and plan components and provides some information about resources for assistance in plan development and implementation. Ten forms used in the participation process are presented. The pertinent legislation is attached. (Contains three figures.) (SLD)