This case study describes the application of the action research model to managing change in an interdisciplinary inpatient unit. Special attention is given to potential resistances to the process and methods for addressing these. A needs assessment instrument assessing 40 program domains produced the initial data from which direction for change was derived. Active participation by all members in each phase of the process was found to contribute positively to the development and implementation of change efforts. Results indicate that the use of the model coupled with participation by the client group promoted positive staff morale, open communication, lower staff turnover, team problem solving, and improved goal attainment.