The School Management Initiative (SMI) is a school-based management (SBM) reform in Hong Kong schools. Reviews on studies of implementation obstacles and strategies of school-based management were huge (e.g. Ornstein, 1983; Wholstetter & Odden, 1992; Leithwood & Menzies, 1996) but experiences from Hong Kong might be ignored. Viewing from multiple perspectives of organizational theory, viz., the structural perspective, the human resource perspective, the political perspective, and the cultural perspective, this paper reviews past literature on SBM researches and reform studies of local schools to identify obstacles and strategies that are applicable to the implementation of the SMI scheme. In terms of the structural perspective, some SMI schools still take the form of Administrative Control hindering the progress of the other two forms, Professional Control SBM and Community Control SBM, because the control of schools are still retained by school sponsoring bodies (SSB). There may remain no clear accountability and role in some schools for key actors who hang onto traditional roles especially for the SSB, the school management committee and the school supervisor. The lack of common goals for key stakeholders in some schools is also an implementation obstacle. The strategies identified to be useful to cope with such obstacles are: to enforce clearer role and accountability on actors at different levels, including government departments, SSB, and site level management; to create participative decision making structure; and to build up common school goals accepted by key stakeholders. For the human resource perspective, obstacles spotted are: the rapid staff turnover in schools with unfavorable conditions; stakeholders' lack of adequate skills and knowledge; the increased stress and pressure on teachers and administrators due to more involvement in school management and appraisal system; and the insufficient time and resources available for teaching and related work. The