Understanding the Policy and Systems Change Compass
The Policy and Systems Change Compass (Compass) is a practical, step-by-step framework developed by the National League of Cities and the Urban Institute to help cities align with partners to turn complex challenges into actionable solutions.
Through a 10-step process organized into four connected phases, the Compass guides local leaders from problem identification, to uncovering root causes, through to designing and advancing policies that improve community outcomes.
Problem
Roanoke’s growing economy was leaving out segments of the population. The city team’s analysis going into the Policy and Systems Change Compass process with NLC pointed to a clear barrier: without access to reliable, affordable childcare, residents faced significant obstacles to participating in high-demand industries. The supports required to get to work—and stay there—were insufficient.
Solution
Roanoke pursued a two-part strategy designed to expand childcare supply from both directions. First, the city proposed changes to zoning policy to allow more family day homes in residential neighborhoods—removing regulatory barriers that had limited where and how family-based childcare could operate. Second, the city proposed a new childcare incentive program for businesses to provide onsite childcare through performance agreements, bringing employers into the solution alongside city government. Both strategies were selected via the Compass steps of policy ecosystem mapping and assessing feasibility and impact.
Progress
Building on discussions and momentum already underway in the community, Roanoke city leaders moved quickly to act within an available window of opportunity. The city identified its FY25 budget cycle as a strategic moment, and leveraged it accordingly. Work proceeded on multiple tracks: presenting to the Planning Commission, building a coalition and drafting the parameters for the program and performance agreements.
The zoning strategy produced concrete results. In early 2024, Roanoke City Council approved changes to the zoning code making family day homes by-right permitted uses in residential districts. As by-right permitted, providers no longer need to go through a public hearing process to open a family day home. For aspiring and new childcare providers, that removed a meaningful hurdle. From a supply standpoint, the change creates conditions for more family day home providers to enter the market. Work on the business incentive program continues, with the city advancing plans to propose new childcare incentives and draft performance agreement parameters in future budget cycles.
Outcome
Roanoke is reframing childcare as essential infrastructure—aligning policy efforts to support equitable workforce access. The zoning change already on the books represents a durable policy win: a structural shift that expands opportunity not just for one provider, but for every family day home that follows. The Policy Compass provided the structured framework to advance these policy goals and see these changes come to pass.
Bring the Policy Compass Home
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