This document presents a set of principles for effective professional development and a series of practical suggestions to help schools and school districts implement these principles. The document also profiles several Indiana schools and programs that exemplify the type of school-based approach to professional development that is so promising. Information comes from a review of research on professional development; discussions with experts nationwide; focus groups with Indiana teachers, principals, and professionals representing other organizations; and a review process that involved teachers, principals, superintendents, and representatives of educational service centers, professional organizations, and the Indiana Department of Education. Chapter 1 presents "Principles of Effective Professional Development." Chapter 2 discusses "A Framework for Effective Professional Development" (trust, time, and recognition). Chapter 3 offers "An Action Plan for Effective Professional Development." The action plan involves identifying the school's improvement needs and priorities; establishing a reservoir of resources; establishing school improvement teams; providing initial support for school improvement teams; operating school improvement teams; maintaining communication and meaningful accountability; and establishing new priorities. Chapter 4 focuses on "Rethinking the Role of Central School District Actors: School Boards, Administrators, and Unions" (policy, funding, and assistance). (Contains 27 references.) (SM)