"Taking the Lead: Investing in Early Childhood Leadership for the 21st Century" is a national initiative designed to build the capacity of the early care and education field to improve program quality. Taking the Lead is founded on the belief that a diverse cadre of early childhood and school-age care leaders is the key to achieving high-quality programs for children. This report looks at the work of Taking the Lead over the past 3 years. The report's first section, "Crisis in Early Care and Education--The Need for Leadership," discusses the challenge faced by Taking the Lead, its response, and the five key elements of leadership development: community partnerships, cultural/community context, relevant content, mentoring, and opportunities to exercise leadership. The remaining section describes the work of various Taking the Lead sites and offers suggestions--organized around the five key elements of leadership development--based on observations of their work. (EV)