This paper synthesizes research on how motivation influenced teachers at two school-based performance award (SBPA) programs in Kentucky and North Carolina. The research was conducted between 1995 and 1998 by the Consortium for Policy Research in Education. SBPA programs provide teachers and other school staff with pay bonuses for the achievement of specific schoolwide educational goals. The paper focuses on teachers' reactions to SBPA programs and the degree to which teachers' motivational reactions are related to subsequent school performance. A combination of onsite interviews and survey questionnaires were used to assess teacher and principal attitudes and responses to existing programs and to determine whether the programs motivated teachers to work toward improved student achievement. The article provides a description of the programs in Kentucky and North Carolina, exploring whether those schools with more motivated teachers were more successful in improving student achievement. The report also examines whether teachers' motivational responses were predictive of schools' success in meeting their student achievement goals. The findings suggest that successful SBPA programs are complex undertakings that require attention to all five elements of the motivation model—expectancy, instrumentality, valence, teacher competencies, and enabling conditions—for it to work. (Contains 55 references, 13 tables and 1 figure.) (RJM)This paper synthesizes research on how motivation influenced teachers at two school-based performance award (SBPA) programs in Kentucky and North Carolina. The research was conducted between 1995 and 1998 by the Consortium for Policy Research in Education. SBPA programs provide teachers and other school staff with pay bonuses for the achievement of specific schoolwide educational goals. The paper focuses on teachers' reactions to SBPA programs and the degree to which teachers' motivational reactions are related to subsequent school performance. A combination of onsite interviews and survey questionnaires were used to assess teacher and principal attitudes and responses to existing programs and to determine whether the programs motivated teachers to work toward improved student achievement. The article provides a description of the programs in Kentucky and North Carolina, exploring whether those schools with more motivated teachers were more successful in improving student achievement. The report also examines whether teachers' motivational responses were predictive of schools' success in meeting their student achievement goals. The findings suggest that successful SBPA programs are complex undertakings that require attention to all five elements of the motivation model—expectancy, instrumentality, valence, teacher competencies, and enabling conditions—for it to work. (Contains 55 references, 13 tables and 1 figure.) (RJM)