This article provides an overview of research, originally funded by the Department of Health, about the internal management and use of resources in residential childcare. It explores ways in which children's homes are managed and leadership is established and relationship of these to their use of resources and outcomes for young people in their case. The paper examines variations in the functioning of a sample of 45 non- specialist children's homes drawn from local authority and independent sectors in England. Utilising both qualitative and quantitative analyses including an economics component, functional relationships of structures, processes, resources and service user outcomes are investigated. The results of multi- level modeling analysis, used to draw together the different strands of the research, are discussed. Main findings indicate that the influence which the process of providing care has on the kind of outcomes experienced by young people is of paramount importance. The paper relates findings to areas for development in practice and its management, especially in terms of training and policy arenas.