This article seeks to replace the traditional and authoritative staff appraisal at a case-study school by a concept of performance management depicted as the performance enhancement and peer appraisal of teachers. It is achieved by elaborating an open system of performance management where teachers are empowered within the existing vertical hierarchy of management. This paradigm shift has substantial implications in terms of the redistribution of power as well as leadership. A "new" organisation for performance management within the existing one is proposed. A performance enhancement programme to improve teaching strategies and to make good use of them has been elaborated for a group of volunteer teachers. They are guided first towards the preparation of the appraisal programme where each participating member acts both as the appraiser and the appraisee. Teacher empowerment, and sustained collaborations and efforts have led to the achievement of a high degree of professionalism in terms of interactions, leadership, and attitudes as well as quality of teaching. (Contains 2 figures.)