Hi, in theory peer observations are additional ways to examine practice. The proximity in which you work with colleagues enables a true insight into daily practice. They are also relationships - professional & personal that have the potential to address sensitive issues much more positively/effectively than maybe the annual appraisal system would look to support.
The pages from
Essex.ac.uk are excellent.
The main considerations that you could use to adapt this type of system to your own setting is the way members feel when they're being observed.. by anyone. If its a situation that causes conflict, anxiety or unneccessary pressure this would be the first focus of a peer support idea.
Hth xx