As schools move from corporate to collegial forms of organization, it will become necessary to adapt evaluation systems to collegial environments. This paper outlines a system that utilizes features of professional self-regulation from higher education while maintaining dispute resolution mechanisms from the public sector. Features of the system are: (1) definition of summative evaluation as "potentially punitive" and formative evaluation as "non-punitive" and related to normal career development; (2) separation of formative and summative evaluation into distinct (non-overlapping) mechanisms; (3) confidentiality of formative evaluation data; (4) involvement of teachers in formative, but not summative, evaluation; (5) use of outside evaluation teams in cases of alleged deficiency of tenured teachers; (6) review by outside evaluators who include teachers; (7) recognizing evaluation as one element in a comprehensive effort to transform schools into collegial environments; and (8) delegation of the responsibility for initiating summative evaluation to central administration and formative evaluation to principals. Recommendations for adapting the approach to educational reform legislation in Iowa and to Iowa's collective bargaining law are included. A sample procedure is given for evaluation in a self-regulated school. Also included is an enumeration of the professional rights of teachers, characteristics of an unfair evaluation; and the linking of group evaluation to achievement of group goals for purposes of performance-based compensation. (SLD)