As states are looking into how to strengthen their student data and performance measurement systems to track student progress and success, they are in need of best practices that are taking root in other states. Based on a set of indicators identified by seven Achieving the Dream states focused on developing and improving their data systems, this policy brief describes the essential features that a state should consider when building or modifying its performance measurement and data systems, as well as the research capacity to support data-driven improvement strategies. Goldberger describes 10 performance measurement features, seven data system features, and four research capacity features along with examples of how other states are effectively demonstrating each particular feature.