Education watchdog Estyn found a failure to use information on pupils' results effectively was holding back efforts to raise standards.
Estyn's report, Local Authorities' and Schools' Use of Performance Data, said using data better would help local authorities support schools that need to improve.
Wales' chief inspector of education, Bill Maxwell, said: "The number of schools identified by inspectors as causing concern is almost double the number we identified in 2005/06. Local authorities and schools need a shared understanding of where underperformance lies so this can be challenged at an early stage."
Estyn found not all local authorities are analysing schools' performance data and other evidence annually and in detail.
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