The purpose of this guide is to provide local policymakers and program managers with an approach for using performance standards as a tool for reviewing and improving performance in Job Training Partnership Act programs at the local level. The guide is keyed to the Department of Labor adjustment methodology for activities beginning July 1, 1988. Section I discusses the evolution of performance standards and their supporting rationale. Section II details a systematic approach to obtaining comprehensive baseline data on local performance, an analysis of the performance of specific activities and contractors within the service delivery area (SDA), an analysis of performance trends, and a comparison with other SDAs. Section III describes two approaches for improving performance: the Oversight Response, which identifies probable causes of poor performance, and the Planning Response, which provides tools to examine new strategies and approaches that will improve performance. Section IV summarizes the key issues related to planning and managing with performance standards. Sample reports, charts, and worksheets are provided as needed. Many of the reports and worksheets in the guide require routine, yet time-consuming, computations using local participant and financial data. A software option (not available here) is available for microcomputer users to speed up the analysis. (YLB)