This report examines the assertion that selections for promotion to administrative and supervisory position should be made from personnel within the district and that it is economically and educationally beneficial for school districts to carry on active programs to identify leadership potential. Few research findings are available to substantiate this assertation, but an examination of the literature on industrial management suggests that, in spite of the different structure of school organization, both kinds of institutions have many common purposes in supporting such a program. Some of the objections put forward include the difficulty of identifying the potentially good administrator, the relatively small number of administrative jobs available, and possible resentment on the part of other employees. Advantages would include the satisfaction of employee ambition, increased loyalty, more satisfactory placement of employees, and a reduction in recruitment costs. The problem of school-university relations in connection with administrative training programs is briefly noted. The document includes a reprint from Personnel Journal on Executive Development and a 32-item bibliography. (MBM)