Presented is the final performance report of Project Catalyst, a program designed to evolve a process in action to maximize skills, interpersonal relations and personal job satisfaction among principals, teachers and pupils (both handicapped and nonhandicapped) in mainstream settings. Covered in Section I, "Framework", are a statement of the problem, background and rationale for the project, goals and objectives, basic assumptions, process models, and process overviews. Section II "Procedures and Progress", follows the implementation of the program from the selection of ten schools through the 3 years of the program; and includes information on such procedures as surveys, meetings, workshops, and evaluations. Appended are such items as the Principal's Skill Scale, pupil and teacher ratings, rating results, and the diagram of the teaching-learning-caring matrix. (IM)