1. What Does Differentiated Instruction And Assessment Look Like?
Source: Differentiated Instruction and Assessment by Sue Watson

2. What Do They Know?
First of all, identify the learning outcomes. For this example we will use:
Natural Disasters
Now we need to tap into our student's prior knowledge.
For this stage you can do a brainstorm with the whole group or small groups or individually. Or, you can do a KWL chart. Graphic organizers work well for tapping into prior knowledge.
You may also consider using a who, what, when, where, why and how graphic organizers individually or in groups.
Key to this task is ensuring that everyone can contribute.

3. What They Need/Want To Learn
Now that you've identified what the students know, it's time to move into what they need and want to learn. You can post chart paper around the room dividing the topic into sub topics.
For instance, for natural disasters you could post chart paper with different headings (hurricanes, tornadoes, tsunamis, earthquakes etc.).
Each group or individual comes to the chart paper and writes down what they know about any of the topics. From this point you can form discussion groups based on interest, each group signs up for the natural disaster they want to learn more about.
The groups will need to identify the resources that will help them gain additional information.

4. Demonstrating New Knowledge
Now it's time to determine how the students will demonstrate their new knowledge after their investigations/research which will include books, documentaries, internet research etc. For this, again, choice is necessary as is taking into consideration their strengths/needs and learning styles.
Here are some suggestions:
create a talk show, write a news release,
teach the class, create an informational brochure,
create a PowerPoint to show everyone,
make illustrations with descriptors, give a demonstration,
role play a newscast, create a puppet show,
write an information song, poem, rap or cheer,
create flow charts or show a step by step process,
put on an informational commercial,
create a jeopardy or who wants to be a millionaire game.
The possibilities with any topic are endless.

5. Through these processes, students can also keep journals in a variety of methods. They can jot down their new facts and ideas about the concepts followed by their thoughts and reflections.
Or they can keep a log of what they know and what questions they still have.

6. Teacher need to create a variety of entry points to ensure that student differing abilities, strengths, and needs are all taken into consideration. Students then need varying opportunities to demonstrate their knowledge based on the teaching, hence differentiated assessments.

7. Assessment You can assess the following:
completion of tasks, ability to work with and listen to others, participation levels, respects self and others, ability to discuss, explain, make connections, debate, support opinions, infer, reason, re-tell, describe, report, predict etc.
The assessment rubric should contain descriptors for both social skills and knowledge skills.

8. As you can see, you have probably already been differentiating your instruction and assessment in much of what you're already doing.
You may be asking, when does direct instruction come into play?
As you're watching your groups, there will always be some students who will need some additional support, recognize it as you see it and pull those individuals together to help move them along the learning continuum.

9. If you can answer the following questions, you're well on your way.
How are you differentiating content? (variety of leveled materials, choice, varied presentation formats etc.)
How are you differentiating assessment? (students have many options to demonstrate their new knowledge)
How are you differentiating the process? (choice and variety of tasks that consider learning styles, strengths and needs, flexible groupings etc.)
Although differentiating can be challenging at times, stick with it, you will see results.