After assessing employee morale and the functioning of organizational processes in the department, a consultant recommended that staff should become more actively involved in the management functions of planning, problem identification and problemsolving, and decisionmaking. Following a reorganization of the top administrative structure, the organization development program was initiated. The program involved a long-range effort at improving organizational problemsolving and renewal processes through participative management using formal work teams. Supervisors and top management staff were asked to identify the most urgent problems confronting the department. A 3-day team building seminar at a conference retreat was organized. The managers assessed their own management styles, psychological orientations to the management process, and the impact that given patterns of behavior would have on other staff members. Interpersonal contracts were negotiated as a means of dealing with past and future conflicts. Over the following year, consultants met with each management team on four occasions and reported that the program was progressing successfully. After 7 months, personal interviews with participants revealed other problems and accomplishments; and after 1 year, an evaluation questionnaire recorded changes within the department. Because of the program's overall success, the department has decided to extend the program to other levels within the organization. Individual problems and accomplishments are described. Footnotes are included.