In coping with the rapid expansion of the school system and in order to increase its adaptability, the Hong Kong Education Department as most education authorities in the Western countries decentralizes its management framework to enhance school effectiveness. The School Management Initiatives (SMI), a school-based management scheme, is a simultaneous loose-tight coupling reform in which lots of knowledge and experiences have been borrowed from those reforms in the economic, commercial and industrial sectors. Evidence from the past six years shows that the SMI has been successful at the school level, but not at the system level. In this paper, an attempt is made to evaluate the implementation of the SMI since its inception in 1991 and some suggestions to policy-makers and school practitioners are also made for their considerations if the school management reform is to be widely and successfully implemented before Year 2000.