The Arizona Career Ladder Teacher Incentive Program, a pilot teacher incentive program, features: (1) successful collaboration among government, business, universities, school districts, and the teaching profession; (2) "stakeholder" initiated and monitored teacher development and performance evaluation systems with totally restructured salary schedules; and (3) a 5-year pilot research and evaluation project to develop a workable and relevant model that recognizes individual capacities and enhances appropriate role definitions and differentiation of work assignments for teacher leaders. Analysis of responses from over 4,000 participants revealed positive findings in relationships between level of teacher performance and student academic achievement. For successful change, organizations need to plan for a healthy environment that enhances interpersonal relationships, communication, and personnel development. (Author/CB)