A pilot program, the Career Ladder Plan, was developed in Kentucky to evaluate a teacher's performance in terms of professional growth and development and professional leadership/initiative based on that teacher's performance on a setting/goal attainment process. Goals jointly selected by the teacher and his/her principal must contribute to school improvement, instructional improvement of the teacher and/or other assigned responsibilities. A process was felt to be needed to reward teachers, enhance instruction practices and maintain teachers within the profession. Statewide consistency demanded the creation of a well-defined and well-organized procedure. Goals and activities have been identified, validated and weighted based on a sampling of over 1,611 Kentucky teachers and administrators. An instrument and process was developed to enable principals and teachers to identify relevant goals, select activities designed to meet those goals, and undertake a goal setting/achievement contract. Fundamental to success is the relevance of goals which participants must recognize as worthwhile and be willing to dedicate both the effort and time necessary for their attainment. Consistent assignment of activities to particular goals did relate to attainment of those goals. Conclusions are that the instrument and process should offer a vehicle for attainment of professional growth and development of professional leadership and/or initiative. (Author/RR)