Externally imposed assessment requirements in higher education call for documented attention to using assessment results for program improvement. Although this systematic process promises to lead to better learning outcomes it has also been challenged as ineffective and even harmful. What can make assessment truly meaningful and move beyond the accountability mandate? Our goal in the work described here has been to advance institutional capacity for a sustained, internally valued system of learning outcomes assessment. Our approach deems faculty engagement to be essential to drive the process and improve educational results. We propose a developmental perspective on assessment capacity, describe our effort to measure and promote a supportive climate for it in our own institution, and draw conclusions about what contributes the most to its advancement. Our results point to central roles for faculty peer attitudes and collaborative institutional leadership.