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High-performing US states: Is there a secret to su

# Industry Themes

High-performing US states: Is there a secret to su

States have enormous responsibilities. They must not only meet their citizens’ needs on a wide range of issues—from education to healthcare to housing and job security—but also manage enormous budgets, often larger than most countries. How they do it, and do it well, is an important question. And for those that are succeeding, how are they succeeding? Measuring performance and developing a fact base for decision making is critically important for states to understand what they’re doing well, where they need to improve, and what their residents value most.

To that end, we have launched our second annual Leading States Index, which combines more than 10,000 data points across a range of observable outcomes to give public-sector leaders a snapshot of how citizens experience their states across eight categories. McKinsey’s Leading States Index is used by U.S. News & World Report to inform their 2018 Best States rankings, the results of which have now been made available online. This year’s study combines enhanced data sets, more historical data, and more information for governments and citizens about what’s working and what’s not. (For more on what has changed since last year, see sidebar, “Refinements to our methodology.”) Here’s what we found.

 

There is no single formula for overall high performance

Among states with overall high performance, a variety of profiles emerge. All perform well on multiple subindices, but none is in the top 20 in all 8 subindices, and even some top performers fall in the bottom half of performance in a couple areas.

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