The aim of this project was to develop effective techniques for identifying educational needs and formulating them into well-defined problems. The critical incident technique was used to identify need symptoms perceived by educators selected from a representative sample of West Coast school districts. Criteria for evaluating the adequacy of the problem-formulation product were developed, including outcomes desired, values underlying outcomes, kinds of evidence for outcomes, present conditions, solution possibilities, and immediate action alternatives. Three group problem-defining techniques were compared experimentally, each differing on two dimensions: (1) Whether or not the formulation was structured to obtain the elements listed above, and (2) whether or not the inquiry was directed by an experienced outside formulator. Eighteen three-member groups of educators were used in all. The problem definition produced by each group was evaluated independently by two other educators from the same district. Results indicated that directed groups tended to produce superior problem definitions, and suggest the need for carefully designed problem-formulation training for educators. (Author/JH)