This training guide is intended to enhance the skills of Head Start education staff so they can accurately and objectively observe, record, and interpret young children's behavior and make thoughtful decisions about program planning for each child. Each of the modules in the guide details module outcomes, key concepts, and background information. Module 1 assists participants in identifying and using a variety of observational methods, matching observation goals to observation techniques, and writing a running record accurately and objectively. Module 2 addresses overcoming observation challenges and provides staff members with practice in identifying and challenging their personal biases, which could interfere with conducting and recording observations objectively. Module 3 addresses enhancing staff's ability to involve parents in the observation process and work with them as partners. Module 4 addresses interpreting and using observation results, and serves to increase staff's ability to make valid inferences and draw meaningful conclusions from collected observation data. Contains resources. Five appendices provide sample observation records, a description of observation instruments, and other information. (SD)