In 1985 the Arizona Legislature established a 5-year Career Ladder Program for teachers. The purpose of the pilot is to determine if student academic achievement is enhanced through recognizing and developing high levels of teacher performance and through a "promotion system based on comptence". The overall research and evaluation component, which was a formal part of the legislation, is being conducted by the Center for Excellence in Education at Northern Arizona University. This document explains the evaluation, research methodologies, designs, models and impact which this teacher-incentive program is having on staff development and improved student outcomes. In addition, it provides actual examples of "action research & program designs" in one of the pilot districts. References are included. (JD)