Background information is provided on the development and activities of Project Cooperation, a demonstration project to help institutions improve educational effectiveness by employing outcomes measures and assessment strategies. After highlighting the various activities of the project (e.g., a national survey, research on different plans and models at demonstration sites, summer workshops, and institutional effectiveness workshops), the report outlines the process by which selected institutions can serve as project demonstration sites by developing and implementing model student assessment practices using American College Testing (ACT) Program instruments. The outline provides information to help institutions: decide upon the "value-added" or "predictive" assessment effort to be undertaken; identify the factors critical to project success and ways to achieve success; and successfully implement the plan. The stages in developing the project proposal and implementation plan are listed, along with the purposes of each stage. Next, the following research models are presented: (1) a value-added model using ACT's Collegiate Assessment of Academic Proficiency (CAAP) instrument as both pre- and post-test to measure students' acquisition of general education skills and information; (2) a value-added model using ACT's Assessment Student Skills for Entry Transfer (ASSET) instrument for skills assessment at entry and CAAP as a measure of value added; and (3) two predictive research models using either CAAP or the ACT's College Outcome Measures Project instrument to assess transfer students' general education knowledge and predict their four-year college performance. Participating institutions and project officers are listed. (JMC)