In every state today, students can meet the requirements for high school graduation and still be unprepared for success in college or the workplace. Just ask business leaders and college presidents, who say they must spend billions of dollars annually to provide their employees and students with the skills and knowledge they should have attained in high school.

The statistics cited to support their claim are indeed troubling. On state assessments in English and mathematics, roughly one in three U.S. high school students fails to meet standards. Only 71 percent of students graduate from high school, and worse, only about half of black and Latino students graduate. Nearly a third of graduates who go on to college require placement in remedial education courses.

Simply put, our standards need to keep pace with the world students are entering after high school. To bring value to the high school diploma, states need to raise standards for all students and tie high school graduation tests and requirements to the expectations of colleges and employers. Colleges and employers must then honor and reward student achievement on state tests through admissions, placement and hiring policies. This will send a powerful signal to students that it pays to meet higher standards in high school.

The policy tools necessary to make this happen do in fact exist — but they are not being used effectively. Using the American Diploma Project (ADP) benchmarks as an anchor, ADP Network states are working to create a system of assessments and graduation requirements that — considered together — signify readiness for college and work. State policymakers have the primary responsibility for accomplishing this, working closely with local educators and postsecondary education institutions, but both federal policymakers and the nation's business leaders have an essential role to play.

ADP Network states have committed to four policy actions:

• Aligning high school standards and assessments with the knowledge and skills required for success after high school.
• Requiring all high school graduates to take challenging courses that actually prepare them for life after high school.
• Streamlining the assessment system so that the tests students take in high school also can serve as readiness tests for college and work.
• Holding high schools accountable for graduating students who are ready for college or careers, and holding postsecondary institutions accountable for students' success once enrolled.