Speaking at the annual Association of Directors of Children's Services (ADCS) conference in Manchester, Goodwill said the DfE is in the early stages of designing a comprehensive improvement system.
In addition to identifying and helping struggling authorities, the system will also be designed to maintain standards in good authorities and spread best practice.
"I believe that we should be doing more earlier to support struggling authorities before they fail," said Goodwill, who was giving his first public speech since being appointed children's minister.
"That is why I'm working closely with officials in the DfE, and in conversation with our partners in the sector, to understand how we can build a system where improvement is continuous - where local authorities are able and willing to self-refer for improvement support, and where we can avert failure before it happens.
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