A systematic procedure is outlined which gives guidance to therapists and teachers in managing seriously emotionally disturbed (SED) students (9 to 18 years old) who reside at a licensed children's institution or are attending a centralized public school facility for SED students. Among findings from a review of the literature was that intensive early intervention with pull out retraining of the student within a special center which emphasizes acceptable social behavior seems to have proven effective. The importance of the communication process in dealing with the SED student is emphasized, particularly in regard to the setting of rules and expectations. Sections address who, what, and how the rules are communicated and reinforced. Approaches to communicating the rules (such as the directive approach, monitoring, and the city council meeting) are described; and means for reinforcement (including positive and negative reinforcement and the token system) are described. General procedures for control are listed, general therapy procedures for SED students are outlined, and staffing patterns for SED students are reviewed. Appended materials include a sample monitoring form, an outline of the city council meeting process, and a sample budget. (SBH)