One of the biggest management challenges anywhere is how to improve student performance in America’s urban public schools. There has been no shortage of proposed solutions: Find great principals and give them power; create competitive markets with charters, vouchers, and choice; establish small schools to ensure that students receive sufficient attention—the list goes on. While these approaches have had a dramatic impact on individual schools, they have failed to produce a single high-performing urban school system. Despite these initiatives and a doubling in annual public spending on education over the past 30 years, to approximately $450 billion in 2005, no one has figured out how to achieve excellence on a broad scale—at every school in a district. One reason is that educators, researchers, and policy makers often see the district office—the organization headed by the superintendent that oversees and supports all the schools in the district—as part of the problem and not as a crucial part of the solution. This is a mistake.

A version of this article appeared in the November 2006 issue of Harvard Business Review.