The successful dropout intervention program is organized to meet students' needs rather than institutional needs. Innovation is required to achieve this focus. School administrators must take initiative in analyzing the problem and designing programs. At Sweetwater, the principal is totally responsible and accountable for the program. The program's success in reducing the dropout rate shows that strong leadership by the principal can and does bring the desired results. Outstanding educational programs require outstanding teachers, counselors, and ancillary staff who have the personal attributes needed to work with the target clientele. The inducement for attracting outstanding teachers is greater pay. Strong incentives such as this ensure a program's success. Incentives must, however, exist for all involved: students, administration, and the school as a whole. Without secure funding, the program is at risk. Securing funding by tying it to performance and placing it in the hands of the principal and school staff provides incentive while establishing accountability. Successful programs meet students' educational and emotional needs. Students must be esteemed and valued if a positive self- image is to develop. 1 reference