The passage of the Carl D. Perkins Vocational and Applied Technology Education Amendments of 1998 (Perkins III) and the Workforce Investment Act of 1998 (WIA) marked a new era in the performance accountability partnership among the states, the U.S. Department of Education, and the U.S. Department of Labor (DOL). Evaluation of vocational education programs' performance is now characterized by quality management principles promoted by the Baldrige National Quality Program and the International Organization for Standardization. The following are among the key elements of the accountability process mandated by Perkins III and WIA: (1) identification of the customers and purposes for performance data; (2) the Office of Vocational and Adult Education's Data Quality Initiative; (3) principles of outcome-based performance review; and (4) application of quality management principles to the Data Quality Initiative. A review of recent federal- and state-level evaluation initiatives reveals that outcome-based performance measurement systems consist of the following core components: (1) a clear goal statement; (2) valid and reliable measurement; (3) standards adjusted for "relevant" differences in circumstances; and (4) performance-based consequences. Before undertaking the design of a high-quality performance measurement system, stakeholders must agree that relevant program activities and reliable performance measures can be linked in a practical way. (Contains 43 references.) (MN)