This paper presents a proposed strategy for developing and utilizing a needs assessment strategy based on Competency Based Teacher Education. The three steps in the strategy are the identification of teaching skills needed in a particular situation, the development of a procedure for determining teacher needs in relation to the identified teaching skills, and a procedure for assisting teachers in acquiring and improving their teaching skills. In a discussion on the identification of needs, the approaches used by the Atlanta Public Schools and the Mentor, Ohio Exempted Village School District are described. The assessment of needs requires that some type of scheme be developed that can describe where a teacher is in terms of the school district's requirement and also provide an opportunity to chart a direction for improvement. Who should assess these needs is discussed. The author concludes with the following points: (a) teachers should make the final decision on competencies needed to perform effectively; (b) the assessment procedure should begin with the assumption that needs assessment is for the improvement of teaching; (c) a continuum of proficiency for each competency should be developed in order to allow for continuous teacher growth; (d) self assessment should be part of the needs assessment procedure; and (e) the administrative hierarchy of the school district should be involved in the assessment procedure. (PD)