This report contains a detailed description as well as data and analyses for the many facets of the Kentucky Career Ladder Pilot Project. The primary purpose of this research and development effort was to design and implement a teacher evaluation system that was valid and reliable and at the same time relatively easy to use. There are 11 chapters: (1) executive summary; (2) a historical perspective; (3) the development of an evaluation system; (4) the selection and preparation of participants; (5) the training and certification of administrators and observers to use the evaluation instruments; (6) extended employment program for teachers; (7) the data collection process; (8) the purpose and ten assertions; (9) special project on expected student achievement; (10) the Kentucky teacher inventory survey; and (11) revised teacher evaluation instruments used in the pilot project. (JD)