Little has been written about how to manage school-district conflict produced by a privatization initiative. This paper presents findings of a case study that investigated the politics of implementing a privatization initiative in a Michigan school district. The case demonstrates that no board of education should initiate a public discussion about any controversial issue without first considering the possible effects of the debate on public support for education. The constituent groups--parents, teachers, taxpayers, students, and various education and judicial authorities--reacted differently to the board's proposal for privatized services. In concluding, the paper offers suggestions for carrying out a viable political process: (1) initiate a policy context for the discussion; (2) identify the needs that precipitated the privatization discussion; (3) avoid blaming any individual or group; (4) learn before acting; (5) design a rational decision-making process that reflects an understanding of the interests of all constituent groups; (6) seek diversity in the study process; (7) involve the media; (8) make a situational decision; and (9) avoid promising a miracle. (Contains 27 references.) (LMI)