To strategically manage human capital in education means restructuring the entire human resource system so that schools not only recruit and retain smart and capable individuals, but also manage them in ways that support the strategic directions of the organization. These management practices must be aligned with a district's education improvement strategy, its view of effective instructional practice, and its goals for student achievement. The district needs to identify key staff who will carry out the improvement strategy, identify the key competencies they need to do the job, and develop strategies for acquiring, developing and retaining talented people. (Contains 1 figure.)