The question for this brief is whether education leaders can use value-added measures as tools for improving schooling and, if so, how to do this. Districts, states, and schools can, at least in theory, generate gains in educational outcomes for students using value-added measures in three ways: creating information on effective programs, making better decisions about human resources, and establishing incentives for higher performance from teachers. This brief reviews the evidence on each of these mechanisms and describes the drawbacks and benefits of using value-added measures in these and other contexts.