The CAUT (College and University Teaching) Project, was designed to create activities to enable faculty members at Oregon State University to design and implement a systematic instructional process. The CAUT Project uses a full year program with four phases of inservice activities for faculty members: workshops, a planning period, a materials and teaching strategies development period, and a one-or two-day evaluation. As a result of the CAUT project a teaching/learning experience in a business course in data processing was developed which used competency-based testing as a beginning step in developing self-paced instruction. This method stimulated improved student satisfaction and higher average grades. In addition, the average level of student competency increased, the proportion of students completing the course increased, and student evaluation of the teaching effort was higher. (CH)