Increasing student achievement and narrowing the achievement gap are challenges that states and districts continue to confront as they strive to develop talent that will contribute to our nation's economy. Some strategies to produce authentic improvement in learning are not entirely a mystery. A preponderance of research in recent years provides strong evidence that the best way to improve achievement is having an effective teacher in every classroom and an effective leader in every school (Leithwood, Louis, Anderson, & Wahlstrom, 2004). Therefore, the development of human capital--the talents, competencies, and knowledge of teachers and school leaders--has drawn increasing attention in the education community. As researchers and policymakers strive to better understand how to attract and retain highly skilled teachers and leaders and bridge the gap between the under-performing American school system and the more effective system of our global competitors, investing in a thoughtful human capital strategy is critical. To provide guidance to states and districts as they develop such strategies, this brief highlights three main dimensions of the human capital "pipeline"--the preparation, recruitment, and retention of highly talented and effective school teachers and leaders--and policy options to consider for each. Policy options are presented in question form in tables in each section, followed by examples of exemplary efforts some states have made. Recommendations appear at the end of the document.