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This paper addresses the problems involved in the progress through evaluation and redesign from one interface prototype to the next stage of development. An approach is proposed based on situated action techniques for the early identification of user interface issues and their translation into design factors that lead to design improvements. The approach can be used within parallel prototyping or iterative development. Situated action is increasingly popular for the participative identification of user requirements for information systems and is usually implemented at an early stage in systems development. In contrast the most frequently used method for user participation within detailed interface design is within iterative user-based evaluation which is often performed relatively late in the development. The method described involves linking developer–user contextual evaluation sessions, where developers observe user''s responses to an interactive prototype, and team evidence analysis sessions, where a group of designers work together to derive design decisions with the evidence collected from the users. The proposed method is tested in an experimental design. The proposed techniques provide a rich source of user evidence that can be brought to bear on the enhancement of prototype user interfaces. The study also showed how team working within a group of developers is important to effective design. [Copyright &y& Elsevier]