People-changing organizations, such as juvenile correctional facilities, are characterized by a high level of discretion at the lower ranks of staff. It has been suggested that this discretion is used for the purpose of custodial control and not reflective of larger organizational goals, such as rehabilitation or community safety. This study examines a three-year cohort (N=391) of youth who were adjudicated to one mid-western male facility. The front-line staff in this facility was responsible for youth release referrals. Given that the staff at the facility have a key role in determining the date of release, and thus the length of stay for each youth, it was hypothesized and subsequently supported by the data that the youth's institutional conduct would play a key factor. Furthermore, it was predicted that misconduct by the youth was not a predictor of future recidivism and this was a misuse of discretion. Outcome measures of recidivism were based on arrest, conviction and reincarceration data over a period of four years. The second hypothesis was not found to be supported by the data, indicating institutional misconduct as a significant predictor of future arrest. These results challenge historical assumptions regarding facility based release discretion for indeterminately sentenced youth being primarily absorbed by the institution as a tool for control of the residents. Although facility staff did not deny the usefulness of facility based release control, these data indicate that behavior in the facility is predictive of future reoffending in the community and is a statistically significant factor in time from release until reoffending.