To comply with Ohio state standards, guidelines are provided for local school districts to organize a competency program. Five steps are outlined: (1) planning the program, including budgeting, scheduling, inservice training, coordinating advisory and working committees, and ensuring public awareness; (2) establishing competencies, by developing or reaffirming district goals, defining objectives, and writing measurable objectives; (3) measuring competencies by using either commercial or district-developed tests, other performance measures, or by teacher involvement in defining competencies and observing students; (4) setting minimum standards of performance; and (5) providing remedial instruction for those students who have not performed at an acceptable level. A checklist of evaluation questions is provided to help assess program effectiveness. (CP)