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Transition from traditional points-based grading to standards-based grading (SBG). Principles: 1. Grades reflect mastery of standards, not behavior or effort. 2. Separate academic grades from 'habits of work' grades (e.g., participation, timeliness). 3. Use a 4-point scale (e.g., 4=Exceeds, 3=Meets, 2=Approaching, 1=Beginning) for each standard. 4. Allow for reassessment: students can retake assessments to demonstrate improved mastery. Report Card: Instead of a single subject grade (e.g., 'B+ in Math'), the report card lists key standards with a proficiency level for each (e.g., 'Solves multi-step equations: 3', 'Calculates area and perimeter: 2'). Communication: Requires clear communication with parents and students about the philosophy and mechanics of the new system.