The aim of the Framework for Teacher Competence Management is to provide school leadership with an empirically tested protocol on how to determine teachers’ professional development needs for teaching 21st century skills. Both quantitative and qualitative research methods were applied to collect and analyze data through three cycles of design-based implementation research over a period of three years, from 2017 to 2019, and by collaborating with staff from 15 schools. The Framework for Teacher Competence Management was developed through adapting a competence management model from the business environment to the school setting. The framework includes three steps: Competence identification, assessment and development; school developmental goals and education reform priorities; and the action and information flows between teachers and school leadership team members. The Framework for Teacher Competence Management has been operationalized through the design and validation of a method to identify teachers’ professional development needs and competence assessment tools, such as performance level descriptors, knowledge tests, and self-assessment questionnaires. The research outlines significant differences in teacher performance within a single school, emphasizing the necessity of gathering school-based evidence for planning more personalized professional development solutions to address professional development needs for different teacher groups.