In September 1989, the Business Roundtable committed to a 10-year effort to work with state policy makers and educators to restructure state education systems and ensure that all students achieve at high levels. To guide this effort and achieve the 1990 National Educational Goals, the Roundtable adopted nine essential components of a successful education system. First, a successful education system assumes that: every student can learn at significantly higher levels and can be taught successfully; high expectations for every student are reflected in curriculum content, though instructional strategies may vary; and every student and every preschool child needs an advocate--preferably a parent. Furthermore, a successful system contains the following components: it is outcome-based; uses strong and rich assessment strategies; rewards schools for success, helps schools in trouble, and penalizes schools for persistent or dramatic failure; involves school-based staff in instructional decisions; emphasizes staff development; provides high-quality prekindergarten programs, at least for every disadvantaged child; provides health and other social services sufficient to reduce significant learning barriers; and uses technology to raise student and teacher productivity and expand learning access. This report describes state policies exemplifying these nine components and state-level strategies for achieving them, highlighting Kentucky's reform plan. An executive summary is appended. (Contains 38 references.) (MLH)