The Annenberg lnsttitute's School Communities that Work Task Force (2002) and, more recently, a variety of research activities undertaken to describe the practices of destricts that are improving their effectiveness, have led us to identify six key function and practice areas for "smart destricts": lead for results and equity; focus on instruction; manage human capital; use data for accountability; build partnerships and community investment; and align infrastructure with vision. while there are numerous examples of school systems making improvements in equity and results, all six areas present huge challenges-and "managing human capital" may be the most underdeveloped practice of all.