In April 1994, the U.S. Department of Labor initiated a systemwide dialogue to identify ways of improving job training and employment preparation for economically disadvantaged individuals. The dialogue process was intended to help achieve broad consensus among system partners and serve as a model of ongoing communication to ensure continuous improvement. It included the following outreach/consultation activities: small group discussions in 15 cities; 5 town hall meetings; meetings with partners and stakeholders; meetings with foundations; minidialogues with low-income advocacy groups; Federal Register Notice; customer satisfaction survey; meetings with researchers and academics; review of current research, and National Youth Employment Coalition (NYEC) report. The following principles identified during the dialogue were used to develop an action agenda to improve job placements and customer satisfaction: customer needs should drive program decisions; federal/state/local partnerships are essential; quality and high performance must become standards; and accountability should rest in program outcomes. The action agenda addressed the following key areas: improving training-to-work connections; meeting customers' needs; streamlining program administration; improving consumer information and customer access; strengthening program linkages; building system and staff capacity; and providing early and comprehensive youth interventions. (Appended are the following: findings from a customer satisfaction survey; advocates' agendas; NYEC findings; and selected research findings.) (MN)