MBO IS A FIVE-PART PROCESS: (1) RECOGNITION OF COMMUNITY VALUES AND DEPARTMENTAL POLICIES IN DEVISING AGENCY POLICY; (2) ESTABLISHMENT OF LONG-TERM GOALS (BROAD ACHIEVEMENT THAT THE OVERALL MBO SYSTEM IS TO REACH); (3) ESTABLISHMENT OF SHORT-TERM OBJECTIVES (ACHIEVEMENTS TO BE ACCOMPLISHED WITHIN A SPECIFIED TIME); (4) DEVELOPMENT AND IMPLEMENTATION OF PROJECTS (SEQUENTIAL STEPS USED TO REACH EACH OBJECTIVE); AND (5) EVALUATION OF PROJECTS, OBJECTIVES, AND GOALS (DETERMINATION OF HOW WELL PREDETERMINED GOALS AND OBJECTIVES ARE BEING ACHIEVED). EVALUATION INCLUDES SPECIFYING MEASURABLE OBJECTIVES, FORMULATING A PRACTICAL EVALUATION DESIGN, SPECIFYING DATA COLLECTION PROCEDURES, AND SPECIFYING DATA ANALYSIS METHODS. ONCE MANAGERS UNDERSTAND THE MBO SYSTEM, THEY NEED TO IMPLEMENT IT. IMPLEMENTATION CONSISTS OF THE FOLLOWING STEPS: (1) GOALS ARE ESTABLISHED BY TOP MANAGERS, (2) MIDDLE MANAGEMENT SUBMITS A SERIES OF OBJECTIVES FOR EACH GOAL, (3) TOP MANAGEMENT SELECTS OBJECTIVES, (4) MIDDLE MANAGERS SUBMIT FINAL STATEMENT OF OBJECTIVES, (5) MIDDLE MANAGEMENT SUBMITS BROAD OVERVIEWS OF PROJECTS FOR EACH OBJECTIVE, (6) MIDDLE MANAGEMENT DEVELOPS DETAILED PROJECTS, AND (7) MIDDLE MANAGEMENT BEGINS IMPLEMENTATION. AN MBO SYSTEM SHOULD NOT OVERRIDE DAY-TO-DAY ACTIVITIES, AND EVERY MEMBER OF THE AGENCY SHOULD BE INVOLVED IN MOVING TOWARD OBJECTIVES. THE APPENDIXES PROVIDE STATEMENTS OF GOALS, OBJECTIVES, AND PROJECTS FOR PUBLIC SAFETY, STREET MAINTENANCE, AND COMMUNITY DEVELOPMENT, ALONG WITH EXAMPLES OF FORMS AND A BIBLIOGRAPHY. (RCB)