As a preliminary to developing criteria to meet quality control requirements of the National Literacy Act of 1991, a study examined federal and state development of measures of program quality and performance standards for programs funded under the Job Training Partnership Act (JTPA), the Carl D. Perkins Vocational and Applied Technology Education Act, the Food Stamp Employment and Training Program (FSETP), and the Job Opportunities and Basic Skills (JOBS) program of the Family Support Act. The study found that JTPA implemented performance standards for employment and training programs at the inception of the program that measured cost per entered employment, entered employment rate, and average wage at placement. Reacting to criticism that these standards forced programs to neglect services to the hard-to-place, JTPA created new standards in 1990 stressing job retention. The Perkins Act reauthorization of 1990 requires states to develop performance standards that measure learning gains, competency or job skill attainment, placement into employment or other training programs, and retention in or completion of secondary school or its equivalent; about half the states are having considerable difficulty developing such standards. FSETP and JOBS programs are required to implement performance standards, but they have not yet been developed. Based on the experience of these other programs with performance indicators, the following lessons appear most relevant to adult education: (1) establish appropriate indicators and standards; (2) allow state and local flexibility; (3) develop management information systems; (4) provide states with technical assistance; and (5) take steps to avoid unintended effects of indicators. (11 references) (KC)