A rationale for school-based evaluation, criteria for a sensible evaluation and assessment system, and a systematic process for implementing an evaluation and assessment system are presented. School-based evaluation can be used as a management tool and a means of improving aspects of teaching. Sensible evaluation must be aligned with school goals, encompass a variety of indicators, provide explanatory power, assess progress over time, focus on both short-term and long-term targets of change, use valid measures, attend to unanticipated side effects, involve collaboration with program designers and implementers, and respond to accountability and monitoring concerns of local school districts and states. The six-step systematic process covers evaluation focus, information requirements, management of instrument development and data collection, collection and analysis of data, interpretation and communication of findings, and use of findings and monitoring effects of resulting changes. The following aspects of schooling, which help identify school quality, are described: student outcomes, curriculum, instruction, school climate, staffing, and parent-community relations. Six figures and two tables are included. Appendices include typical evaluation questions, sample survey instruments, a hierarchical list of school data useful for evaluation purposes, formats for using and displaying data, and a sample report to parents. (TJH)