This CE Brief proposes the Public SectorGovernance Reform Cycle framework to help Bank staff andclients identify tools and techniques to assess andstrengthen capacity in the public sector.A number oflessons and challenges have emerged: Tools relying on largesets of microdata benefit from both quantitative andqualitative data. Highly aggregated data are useful forcross-country comparisons and awareness raising, whiledesign of sector-specific reform programs requires specificand disaggregated data. Employing a wide range of datasources and tools and triangulating results can greatlyenhance reform programs, whereas quality control willenhance credibility of results. The degree of impact onpolicy debate and capacity building depends on clientdemand, openness, participation, and transparency. It isimportant to move beyond governance diagnostics to implementreforms and measure progress against poverty reduction targets.