A joint study by the Local Government Information Unit (LGiU), and the Children's Services Development Group (CSDG), which represents children's services providers, calls for steps to be taken to ensure the best possible services are provided most cost-effectively.
The report, based on discussions with 16 local authorities, and providers of services, highlights that a formal definition for the term "outcomes" for looked-after children has yet to be defined.
"From our engagement with local authorities, families, young people and other providers, it is clear that achieving clarity on what the desired outcomes are is crucial to ensuring services effectively meet needs and improve the long-term chances of vulnerable children," the report states.
"The current system of diffused and often generic measurements varies significantly between local authorities.
"The sector must urgently identify and agree to a number of short-term and long-term desirable outcomes, and the metrics that sit behind them, so that progress can be effectively measured.
The report suggests that for the majority of young people desirable outcomes could include a mix of "soft" outcomes, such as increased levels of self-esteem, recognition of existing skills, and developing techniques to avoid conflict, as well as "hard" outcomes, such as entering education, training or employment, or achieving a vocational qualification.
"Through commissioning for outcomes, performance will be measureable against targets and data can inform local authority decision making," the report states.
The report also calls for greater support for commissioners through the development of national commissioning guidance.
"Commissioners require clear guidance to aid decision making," the report states.
"Stronger national guidelines for commissioners would not only support them in finding appropriate placements but clarify what is expected from providers."
In total the report makes 14 recommendations, including:
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