Noting the connection between the systematic observation of children's behavior and effective teaching, this book details experiences of early childhood practitioners to illustrate how observation helps teachers and caregivers become more effective in the child care center, preschool, family child care home, or elementary school classroom. The book includes strategies for making daily decisions about observing, getting started, making observation a habit, using what is learned from observing, and overcoming obstacles to observing. Chapter 1 focuses on observation as an attitude of openness as well as a set of skills. Chapter 2 describes the power of observation as the basis for building trusting, responsive relationships with children. Chapter 3 focuses on the self-awareness of the observer. Chapter 4 presents guidelines for effective observation. Chapter 5 looks at the daily decisions made while observing and offers practical suggestions for observing in a variety of settings. Chapter 6 highlights how to use what is learned from observing to foster each child's competence and success, and as a result, to create and maintain a high-quality program for children and families. Chapter 7 offers strategies for getting started and provides answers to frequently asked questions about observations. Contains 12 annotated references. (KB)