During the 1984-85 academic year, the Pennsylvania Department of Education (PDE) initiated efforts to reform school districts' teacher supervision/evaluation (TS/E) procedures. The goal was to improve the quality of classroom instruction and develop more consistent, meaningful teacher evaluations. This paper describes a study conducted by Research for Better Schools that examined the teacher-evaluation systems in five Pennsylvania school districts. Data were obtained through: (1) interviews with a total of 20 central office staff, 37 administrators and/or trainers, and 194 teachers; (2) analysis of district records; and (3) followup contacts with a sample of district officials. The following critical elements in designing and implementing new TS/E systems were identified--introduction and generation of staff support, system design, training, and implementation/continuation. Key issues include the relationship between supervision and evaluation, the selection of trainers, and system monitoring. Alternative modes of supervision/evaluation and centers for teacher training are two promising innovative practices. Findings indicate a definite and continuing support role for the PDE in districts' TS/E improvement efforts. Several recommendations are made for improving PDE's role. (LMI)