The purpose of this report is to explore how to redesign grading systems to best help students gain the skills necessary to be successful. This report explains the weaknesses of traditional grading systems, and how to redesign grading along the 6 elements of competency-based grading. It highlights lessons learned from the field, such as transparency, community engagement and continuous improvement, and discusses important topics such as college admissions. The research depicts how to design for deeper learning and equity. This report will help districts and schools converting to competency education develop new philosophies of grading, as well as the specific practices needed to operationalize them.