This is one of a series of reports that document the formative research that supported the development of the "First Steps" program designed to improve the literacy and numeracy of primary school students in Western Australia, particularly those considered at-risk. The four themes of First Steps (reading, writing, spelling, and oral language) are organized around a development continuum of milestones along the child's path to literacy. This report documents the impact of First Steps on teachers and schools by considering descriptions of its impact provided by principals and teachers in a sample of Western Australia schools. Responses were received from 30 Year-1 teachers, 34 Year-5 teachers, 12 focus teachers, and 15 principals. Questionnaire responses reveal that the general feeling in schools about First Steps is positive, and that its teaching strategies and materials have been well received. Principals felt that the First Steps focus teachers were very helpful in introducing First Steps into the schools, and that the professional development provided by the First Steps program was very helpful also. Principals and teachers thought that one of the major achievements in First Steps schools was the improved performance of students, and another was improved teaching skills. First Steps was particularly well-regarded in schools that had been involved with the program for more than a year. Two appendixes present response rates to the questionnaires and the texts of the questionnaires for principals, focus teachers, and teachers in First Steps and other schools. (Contains 14 exhibits and 7 references.) (SLD)