During the first phase, the faculty is involved in a planning process in which the school is analyzed to identify exemplary things in progress as well as improvements that need to be made. These are expressed in an application, which stipulates the school's Pay for Performance objectives. The application is reviewed by a group of trained local educators. After the reviewers make suggestions for improvement, the application then goes back to the school. Revised applications are returned about a month later and are reviewed again by local educators who decide whether the objectives represent an exemplary school or a school making outstanding progress toward becoming exemplary.
Reviewers also approve or disapprove an application based on the measurability of the objectives.
Once the application is approved, the participant school spends the next year carrying out its plan and collecting data to demonstrate that it has attained its objectives. At the end of the school year, the faculty prepares and submits a performance report. This is reviewed by a panel of local educators who determine whether the school met at least 80 percent of its weighted objectives. If the school has accomplished this, it is deemed exemplary and receives the Pay for Performance award. The Pay for Performance Program is one initiative specifically designed to promote school improvement at the school and community levels.