Turn the handle on the main water line's ball valve 90-degrees clockwise to shut off the flow of water to the entire house while you work.
Remove the screw in the center of the brass diverter handle using a screwdriver. This will release the handle from the valve stem.
Pull the valve handle off of the stem and set it to the side.
Grasp the tip of the valve stem with adjustable pliers and pull straight out. If the valve stem does not pull free, use a stem puller to remove the stem. Stem pullers are available at most home improvement stores.
Place a new valve stem into the hole in the shower wall with the tip facing you. Push it into place using your fingers or the wrench. The stem will snap into place when fully installed. It's critical to use an exact replacement valve stem. Bring your old diverter stem to your local hardware store if you are not sure which model it is.
Place the diverter handle over the end of the stem. Place the retaining screw in the center hole and tighten using a screwdriver. Turn the main water back to the "on" position and test the shower diverter.