PAST ATTEMPTS BY MENTAL HEALTH PROFESSIONALS TO FIND EFFECTIVE PREVENTION OR TREATMENT PROGRAMS FOR ADOLESCENTS WITH SEVERE CONDUCT DISORDERS HAVE LARGELY FAILED. THE BEHAVIORAL MODEL, HOWEVER, OFFERS A CONSISTENT THEORETICAL FRAMEWORK FOR UNDERSTANDING BOTH THE ORIGIN AND THE MANAGEMENT OF SUCH PROBLEMS. ALTHOUGH BEHAVIORAL METHODS CAN BE USED TO CONTROL OTHERS, THEY CAN BE EQUALLY USEFUL IN FOSTERING CLIENTS' SELF-DETERMINATION AND MATURITY. THE GILBEY HOUSE TOKEN ECONOMY MANAGEMENT SCHEME (TEMS) IS LOCATED IN A 15-BED UNIT IN A COMMUNITY HOME FOR BOYS AGED 12 TO 16. IT USES THE THREE ESSENTAL COMPONENTS OF TOKEN ECONOMY TECHNIQUES: CLIENTS' INVOLVEMENT IN THE MANAGEMENT OF THEIR PROGRAMS, A TOKEN REINFORCEMENT SYSTEM WHICH CAN BE GRADUALLY FADED AS CLIENTS ARE ABLE TO RESPOND MORE TO THE INTRINSIC VALUE OF SKILLS ACQUIRED, AND EFFECTIVE FEEDBACK AND TRAINING FOR BOTH STAFF AND CLIENTS. BOYS EARN TOKENS BY ACHIEVING PERSONAL BEHAVIORAL GOALS SUCH AS SOCIAL SKILLS, PERSONAL HYGIENE, AND EDUCATIONAL ATTAINMENT. TOKENS CAN BE USED TO PURCHASE EXTRA HOME LEAVES, CIGARETTES, GAMES, AND OTHER ITEMS. PRELIMINARY EVIDENCE DURING 1977 INDICATES THAT THE PROGRAM GOAL (RAPID AND BROAD EXPANSION OF SKILLS) HAS BEEN ACHIEVED. EDUCATIONL GAINS MAY RESULT FROM THE TEACHING METHODS USED RATHER THAN FROM THE TOKEN ECONOMY. RUNNING AWAY HAS DECLINED DURING THE YEAR AND IS ASSOCIATED WITH ACTING OUT BEHAVIORS. ONLY FIVE OFFENSES WERE COMMITTED DURING THE YEAR. ONLY A SMALL PERCENTAGE OF THE ADMISSIONS WERE FAILURES. A CONTROLLED COMPARATIVE EVALUATION IS NEEDED TO ESTABLISH CLEARER EVIDENCE OF THE PROGRAM'S EFFECTIVENESS. A REFERENCE LIST IS INCLUDED. (CFW)