The Arizona Career Ladder Research and Evaluation Project was created to conduct research on the 5-year state pilot career ladder project (CLP), a teacher incentive program in which improved student achievement is one design criterion. This project's yearly research and evaluation cycle involves three basic steps: data collection, analysis, and reporting/feedback. Areas of data collection include: (1) individual career ladder program components; (2) teacher and administrator perceptions; (3) school climate; (4) teacher attraction, retention, and motivation; (5) district self-evaluation; and (6) student achievement. Data analysis includes noting changes and profiling effects of career ladder program components within each district. Reporting/feedback includes annually reporting findings to the appropriate state legislature committee and participating districts. Data collection began in spring 1986. Some of the unique features of Arizona's program include individualized and district-developed career ladder systems; extensive teacher input; no established quotas; a restructured salary schedule; and collaboration among government, business, universities, school districts and the teaching profession. This document, prepared for the legislative committee, provides a description of and data from the spring 1986 data collection, analysis of the data, and recommendations and conclusions. A good network of communication between CLP committees and teachers, a team approach to evaluation with emphasis on inter-rater reliability, and staff development/inservice are reported to have allowed for effective change. (ABL)