This paper describes the creation and implementation of a faculty development system at California State University at Chico which uses the "guided design" approach for teacher improvement. Following a discussion of previous faculty development efforts at Chico, a history of the guided design project is presented, and the sequence of events leading to its utilization by members of the nursing faculty are outlined. Six elements that are crucial to the success of this type of program are identified: (1) a focus for professional and faculty development activity on campus; (2) continuous interdisciplinary networking and feedback; (3) resource people who are sensitive enough to challenge the faculty to explore new ideas; (4) mentoring and sponsoring relationships between faculty; (5) campus visitors who are experts in various modes of innovative teaching techniques; and (6) sharing of ideas and successes. (JB)