There are variables in existing grading systems that limit their effectiveness as generalized indicators of academic performance. For example: (1) the multiplicity of grading systems now in use create interpretive dilemmas for educators and students alike; (2) attempts to standardize encounter resistance, which hinders a common approach; (3) present numerical and quality-point averaging systems fail to account for substantial grading differences that exist among the various departments of an institution; and (4) rank-order academic standings of heterogeneous student groups, based upon grade-point or quality point averages, often give a misleading index of student achievement. The Standardized Transformation of Academic Grades (STAG) approach attempts to solve these difficulties by converting existing quality-point or numeric averages into a normalized and standardized scale. A conversion equation is devised for a particular reference group based upon actual grade distribution data obtained from class rank lists. The resulting "transformed" grade has the advantage of standard degrees of mean value and variability, permitting a more valid interdepartmental comparison. Since the conversion is accomplished post-facto, the necessity to enforce any pre-set grading standard is avoided. (AF)