As the first in a series of monographs on competency-based education (CBE), this paper presents background information and exercises to aid instructors in understanding and utilizing performance goals as tools for articulation, program development, and student evaluation. After introductory material discussing the major differences between norm-based and competency-based education, the monograph provides working definitions for "aims,""programs,""performance goals,""course terminal performance objectives," and "enabling objectives." Next, Davies's review of the literature on using, as opposed to writing, performance objectives is summarized before a brief outline of the changes in educational thought on performance goals. The next section provides a general perspective on the value of performance goals in: (1) communicating program content to internal and external audiences, including students, employers, and other institutions; (2) developing courses and articulating them within the program to insure a logical and orderly progression of learning; and (3) evaluating and improving courses. Specific strategies are then presented for using performance goals for these purposes. The monograph concludes with an annotated bibliography. (JP)