This analysis explores the essential criteria necessary to define standards-based grading (SBG) and to judge its effectiveness. Findings reveal that although many schools today are initiating SBG reforms, there's little consensus on what "standards-based grading" actually means. As a result, SBG implementation is widely inconsistent due to an array of factors, including varying and uneven guidance provided by SBG proponents. Without precisely knowing what defines SBG and the clear criteria for judging its effectiveness, uncertainty, confusion, frustration, and resistance are leading educators to abandon SBG efforts altogether. The researchers conclude that there are three essential criteria necessary to define SBG and to judge its effectiveness in schools. When these criteria are discussed, applied, and met consistently, findings indicate that SBG can effectively serve its primary purpose--as an important tool for communicating students' performance with students and parents.