The paper examines policy implications of recent trends toward state mandated assessment of higher education services. Two differing purposes of assessment, that of academic improvement and that of accountability, are distinguished. Current trends in how policy makers and higher educators approach a "new accountability" include seeing assessment as a mechanism for actively shaping institutional agendas toward greater attention to instructional quality. External requisites for accountability are based on three broad policy directives: re-establishing credibility, expanding the base of resources, and creating a vision for the future. In contrast, internal requisites for accountability also involve three policy directives: recreating standards for student competence and achievement, sending a clear message on priorities, and revitalizing curriculum and instructional practice. Effective assessment requires a commitment for the long term and state leadership that will sustain assessment as a process with academic integrity. Contains 10 references. (DB)