This guide was developed to assist Oregon school districts in meeting revised minimum state standards for planning and assessment. The teacher's role in objectively judging student performance with respect to satisfying graduation requirements is discussed. Guidelines are given for implementing an effective system of using teacher judgments in assessing students' life skills competencies. Life Skills competency is defined as demonstrable ability to apply knowledge, understanding, and/or skills assumed to contribute to success in life-role functions. The steps involved in teacher assessment of student skills include: specifying and understanding the skills required, naming performance characteristics, developing valid means of collecting data, developing guidelines for making judgments, fairly judging student competency, and taking appropriate followup action. (MV)