Arizona is approaching educational reform through the establishment of a teacher incentive program which completely restructures the way teachers are classified and rewarded. The Center for Excellence in Education at Northern Arizona University was mandated by the state legislature to evaluate district plans over a 5-year test period and to report summative findings on the Arizona Career Ladder Pilot Project. Although the research process, involving observation, data analysis, and evaluation, is not yet complete, some positive trends are becoming apparent. Major areas of strength reported by 1,935 educators include: (1) teacher input (program ownership); (2) salary; (3) mobility; (4) professionalism; (5) evaluation; (6) improved instruction; and (7) staff inservice. The trends and events in Arizona are also being watched by other states and the nation in general for implications and possible applications to other areas. (CB)