Because of the Job Training Partnership Act (JTPA) program's strong emphasis on performance, there is a danger that local JTPA programs are neglecting the program's goal of adequately serving those with the greatest problems in obtaining and sustaining employment. A number of JTPA officials at the federal, state, and local levels were interviewed to determine ways in which the JTPA performance standards system can be used to encourage the provision of services to hard-to-employ individuals while still maintaining an emphasis on performance. Two types of policies were determined to be promising: (1) reducing disincentives to serve hard-to-serve persons and (2) providing incentives to encourage increased service to hard-to-serve populations. Policies to reduce disincentives include adding factors to the models for deficiencies and barriers, additional target groups, and adjustments for activities; changing the reward structure for exceeding standards; and providing performance standards exemptions for hard-to-serve individuals. Policies to provide additional incentives include allocating six-percent funds, adding standards and giving extra credit for the hard-to-serve, and providing additional technical assistance. (Reports on the Illinois Pilot Performance Standards Adjustment Models and extra credit for participants with barriers to employment are appended.) (MN)