This document reports efforts to address some of the problems of competency-based assessment by developing and utilizing unique measures of competence. Seven conceptual guidelines are identified for test development and utilization: (1) new competencies must be identified and operationally defined; (2) new competencies should have general significance to a wide variety of career and life outcomes; (3) new definitions of competencies and measures developed for their assessment should be easy for faculty and students to understand; (4) competencies should be empirically linked to external realities; (5) the discovery of new ways of measuring competencies should acknowledge levels of performance required for entry into roles outside of academic settings; (6) standards for awarding credentials should acknowledge levels of performance required for entry into roles outside of academic settings; and (7) new attempts to define and assess learning outcomes should not be guided solely by attempts to make them functionally equivalent substitutes for traditionally assessed school achievement. A number of measures were developed along these guidelines; they are organized according to three outcome domains--cognitive, effective, and social. Descriptions of these measures are presented, and their applicability for competency based education and use in postsecondary institutions is discussed. Finally, the critical concept of the meaning of measurement is discussed along with some additional problems to be faced by educators, researchers, and funding agencies if the problems of assessment in higher education are to be adequately redressed. (MM)