This digest, based on a full report of the same title, provides an examination of the improvement of college teaching and argues for the central involvement of faculty themselves in collaborative peer review and looks at some central issues and challenges to implementation. Since summative evaluation involved in tenure and promotion decisions cannot be an effective tool for instructional improvement, formative evaluation, assessment specifically designed to improve teaching, should be put into place alongside but apart from summative evaluation. Collaborative peer review is well suited to the formative evaluation task. Faculty can evaluate their colleagues' performance pre-interaction, at delivery, and post-interaction. They can also assess interrelationships among these stages and goals and objectives, methods and materials, and feedback. Methods can include direct classroom observation, videotaping of classes, evaluation of course materials, assessment of instructor evaluation of the academic work of students, and analysis of teaching portfolios. Other formats and combinations of methods have been advocated. With improved processes, faculty may be more willing to participate in peer review. Teaching improvement through peer review can come about in a way that significantly enriches individual faculty members and their institutional academic community. Nine specific recommendations from a study of formative peer evaluation are included. (Contains 8 references.) (JB)