THIS WORKSHOP MANUAL, DEVELOPED FOR THE TRAINING PROGRAM, BEGINS WITH AN OVERVIEW OF THE POLICY ANALYSIS PROCESS AND THE TRAINING PROGRAM WHICH INVOLVED THREE REGIONAL WORKSHOPS ATTENDED BY MANAGERS AND ANALYSTS, AND PERSONS TRAINED IN ISSUE DEFINITION, ECONOMIC ANALYSIS SKILLS, AND RESEARCH PLANNING; ONSITE TECHNICAL ASSISTANCE AND TRAINING PROVIDED BY PROJECT STAFF; AND AN ADVANCED SEMINAR DEVOTED TO EVALUATING RESEARCH PRODUCTS AND IMPLEMENTATION STRATEGY. THE SECOND SECTION OF THE MANUAL CONTAINS THE WORKSHOP MATERIALS DIVIDED INTO THREE MODULES. THE FIRST MODULE INCLUDES THE ISSUE PAPER AND FOCUSES ON PROBLEM IDENTIFICATION AND DEFINITION. THE SECOND CONTAINS THE WORKPLAN AND IS CONCERNED WITH MANAGING A RESEARCH EFFORT. IT ALSO COVERS PROBLEMS ENCOUNTERED IN CARRYING OUT RESEARCH AND IN IMPLEMENTING THE PRODUCTS OF AN ANALYTICAL EFFORT. IT FURNISHES A SERIES OF EXERCISES DESIGNED TO ASSIST PARTICIPANTS IN EVALUATING THE RISK OF FAILURE ASSOCIATED WITH EACH ALTERNATIVE IDENTIFIED IN A COMPLETE ANALYTICAL PROJECT. THE FINAL UNIT EMPHASIZES THE NEED TO MANAGE RISK TO INCREASE PROBABILITY OF SUCCESS. THE THIRD MODULE CONTAINS A SET OF ACTIVITIES WHICH SUPPLEMENT THE MAJOR THEMES COVERED IN THE WORKSHOP, I.E., COST-BENEFIT ANALYSIS, COST ANALYSIS, AND COST-EFFECTIVENESS ANALYSIS. INCLUDED ARE AN URBAN POLICY GAME INCLUDING ROLE PLAYING (WHICH ILLUSTRATES THE POLITICAL CONTEXT OF POLICY ANALYSIS,) AND A SERIES OF SCENARIOS AND CASE STUDIES THAT INTRODUCE WORKSHOP PARTICIPANTS TO POLICY ANALYSIS BY HAVING THEM DEAL WITH SITUATIONS INVOLVING SUCH ISSUES AS OVERTIME IN PRISONS, COMMUNITY CORRECTIONS, AND REORGANIZATION. REFERENCES ARE PROVIDED. (DAG)