This paper describes an approach to teacher evaluation intended to establish a meaningful link between classroom observations and teacher development. In this approach, observations are always announced. They last for the duration of the teaching hour and constitute one link in a three-part observation cycle. The pre-observation session with the teacher is intended to negotiate the observation focus and decide upon a data gathering method. The observation is intended to compile data about the lesson, emphasizing the previously selected observation focus. The post-observation conference, which should occur within 2-3 days, is devoted to interpreting data gathered during the observation. This approach to observation is cyclical, systematic, and purposeful, ensuring a meaningful link between observations and allowing the supervisor and teacher to identify specific areas for observation and follow-up activities based on the individual teacher's needs and abilities. The process uses regular class visits as the foundation for formative and individualized long-term planning of teacher development. The core of the teacher's annual appraisal is derived by examining progress made from the beginning of the process to the point at which the rating is due. (SM)