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For evidence on the potential of eliminating automatic tenure, articulating a process for granting tenure, and using evidence of effectiveness as criteria for tenure see D. Goldhaber and M. Hansen, "Assuming the Potential of Using Value-Added Estimates of Teacher Job Performance for Making Tenure Decisions." Center for Reinventing Public Education. (2009). Goldhaber and Hansen conclude that if districts ensured that the bottom performing 25 percent of all teachers up for tenure each year did not earn it, approximately 13 percent more than current levels, student achievement could be significantly improved. By routinely denying tenure to the bottom 25 percent of eligible teachers, the impact on student achievement would be equivalent to reducing class size across-the-board by 5 students a class.
For additional evidence see Robert Gordon, et al., "Identifying Effective Teachers Using Performance on the Job," Hamilton Project Discussion Paper, Brookings Institute, March 2006.