This paper argues that it is feasible to develop good indicators of the performance of a particular welfare-to-work program, office, or contractor. Performance indicators can motivate local offices, contractors, and staff to be more effective in achieving the program's goals. Performance indicators can provide information on what program strategies lead to the greatest long-run success. To be most useful, performance indicators must be simple and timely and control for factors other than the program's effectiveness that influence whether welfare recipients "succeed."