This document is written for public school administrators who are interested in establishing in their schools a competency-based, inservice teacher education program. Project CLASS (Coordinated Learning Activities for School Staff) has initiated a series of guidebooks to assist schools in setting up such a program. In this project, an alliance between a public school system and a teacher training institution is suggested. It is also proposed that generic competencies be developed so skills that ought to be cultivated in teachers may be agreed upon. The emphasis of this project is on field training on the job for teachers. This guidebook for the administrator of such a project covers the following topics: (1) a rationale for public school involvement in Project CLASS activities; (2) rationale for public school teachers choosing to be involved in Project CLASS activities; (3) importance of attitude in the participating school system; (4) conducting a needs assessment; (5) establishing competencies and indicators; (6) providing necessary staff and financial resources; and (7) suggested time line for activities, personnel, and incurred costs. (JD)