This paper describes a process for determining professional development needs of principals as a basis for designing inservice programs. The study took place in Independent School District 196, one of the largest districts in Minnesota. A questionnaire and the Nominal Group Technique (NFT), a structured group meeting that follows a prescribed sequence of problem-solving steps, were used in determining inservice needs of principals. A questionnaire was developed that has 60 statements of principals' competency equally divided among 12 administrative areas of competency. The questionnaire requires respondents to make two responses to each item--principals' present level of behavior, and the importance attached to each level of competency for principals in the district. The survey was sent to 300 teachers, 14 principals, and each of six central office staff who had agreed to participate in the study. All of the principals and central office staff completed the questionnaire. The response rate for teachers was 59 percent. After analysis of the data, the NGT technique will be used to identify the most important needs for inservice education. The appendices contain copies of the forms used in the study. (MLF)