From teaching methods to instructional materials, from assessment techniques to effective use of smart-room technologies, peer observation is a way to receive constructive feedback from your colleagues regarding what's working in your classroom and what's not.
Peer observation involves direct observation of class sessions by one or more of your colleagues. Generally speaking, such observations are conducted by individuals in your own program or department and can be used either as part of an informal effort to improve your teaching effectiveness, or as part of a formal review process.
Regardless of how the observational situation develops, it is an opportunity for instructors to examine, reflect upon, and improve their pedagogical practices. It is also an opportunity to seek out, construct, and implement new teaching materials or methodologies; an opportunity to explore—in a collegial, non-threatening environment—new avenues to better teaching.