The problem of culturally, linguistically, and economically diverse (CLED) student underrepresentation in gifted programs demonstrates a need to examine systemic processes, including the building of systemic capacity at the district and school levels where policies for gifted programs are formed and implemented. To examine the effects of this process on one diverse district's gifted identification and services, we conducted 10 focus group interviews with 61 participants including gifted coordinators, teacher leaders, and gifted facilitators in the middle of a district initiative aimed at improving equitable identification and services in its gifted program. Data were analyzed using the six-phase approach of Thematic Analysis, which included (1) familiarization, (2) coding, (3) searching for themes, (4) reviewing themes, (5) defining and naming themes, and then (6) writing our report. Three overarching themes emerged from the in-depth analysis: (1) building systemic capacity, (2) shifting conceptions of giftedness, and (3) equitable identification practices and inclusive programming. Findings indicated the importance of systemic capacity building in teachers for improved CLED student identification into gifted programs and services. Essentially, building systemic capacity and shifting conceptions of giftedness share a reciprocal relationship in leading to more equitable gifted identification practices and inclusive programming. Moreover, implementing flexible and nuanced policy that takes into consideration school climate and culture is critical to building systemic capacity while working toward goals of equity. Recommendations are provided for researchers and practitioners based on these major findings.