This guide provides assistance to New Mexico school districts in implementing a state-sponsored teacher performance evaluation plan (Provision III of the New Mexico Staff Accountability Plan, adopted by the State Board of Education). This plan involves five basic procedures: (1) determine specific definitions of the six essential teaching competencies adopted by the state; (2) select and define other competencies to complete local criteria; (3) adjust the local evaluation system to that adopted by the state; (4) determine training needs in observation, growth planning, and conference techniques; and (5) determine a schedule of implementation that will include all teaching personnel. Information appropriate to carrying out these requirements is provided, including a list of the six essential teaching competencies, an explanation of the eight required components for teacher performance evaluation, requirements for submission of the plan, and criteria for approval. Six appendixes are included: (1) text of the New Mexico Staff Accountability Plan; (2) descriptors and indicators for each of the six essential teaching competencies; (3) possible additional competencies with descriptors; (4) points to consider on observation, conferences, and planning; (5) New Mexico State Department of Education Regulation No. 84.8; (6) a five-page bibliography; and (7) a listing of videotapes/films. (TE)