A plan is described that is in successful operation as one feature in situational therapy in a research service devoted to the study of schizophrenia. The patients are formally divided into six groups in accordance with their psychiatric status. Each group is described in terms comprehensible to the patients, and to each group is assigned a grade letter. Patients are promoted or demoted from grade to grade in accordance with changes in the mental condition. All promotions and demotions are given ward publicity. This is an effective method of motivating efforts toward self-improvement and of stimulating hope in the individual patient. The method is widely applicable to state hospital practice, and yields excellent therapeutic results for the effort expended.