This paper outlines the dimensions of a customer-focused system of accountability and describes approaches taken at the state level to respond to the information needs of a broader client base for higher education. Section 1 traces current trends in the development and implementation of state-level accountability policy for higher education. It reports on a 1997 survey on performance measures from state and multicampus system representatives in 48 states. Among seven key findings of the survey were: (1) state-level interest in accountability is strong and shows no signs of abating; (2) state policy agendas for accountability continue to emphasize the dual purposes of improvement and accountability; and (3) the most commonly used measures for performance reporting are quantitative indicators of "outcome" or "output." Section 2 describes the information needs of three of higher education's primary sets of customers state legislators, students, and employers based on their perceptions of and expectations for the system. Section 3 outlines some "best practices" involved in developing customer-focused information systems and describes new roles state boards have adopted in using information to shape the market for higher education. (Contains 16 references.) (DB)