Hawaii's School/Community-Based Management Initiative (SCBM), which was enacted into law in 1989, is part of a national trend toward decentralizing decision making and increasing school autonomy that arose during the 1980s. A voluntary program, SCBM offers schools flexibility, autonomy, and a small amount of resources in exchange for school-community commitment and plans for improving educational outcomes. This document presents findings of an evaluation of the first nine schools that participated in SCBM. Data were derived from individual and focus-group interviews with each of the six role groups and SCBM council members; observation; surveys of teachers, support staff, SCBM council members, administrators, and parents; and document analysis. The evaluation shows that SCBM participation has brought greater voice to many groups, fostered new ways of collaboration, and (in a few cases) led to the development of a school culture that supports significant improvement in the learning environment. In short, SCBM rarely has caused school improvement but has provided the framework and vehicle for improvement. The following recommendations are offered: (1) All levels need to consider ways to continue building group decision making and communication skills; (2) schools need to determine and clarify the roles and responsibilities of the council from the start; (3) participants at all levels, but especially in schools, need to develop better procedures for orienting new SCBM council members--particularly staff and parents--to SCBM and the school's vision; (4) the state needs to streamline and clarify the waiver and exception process; (5) schools and the state should consider adopting accountability systems capable of meeting both school and state needs; (6) all levels should consider streamlining school-improvement goals, designing staff-development plans, and instituting a comprehensive planning process; and (7) greater cooperation, coordination of effort, and creative use of resources are needed to provide SCBM schools with support in this time of diminishing resources. Six figures and 13 tables are included. (Contains 21 references.) (LMI)