Recent studies indicate that the principal is key in planning for change and that innovations can succeed when the principal as change facilitator shares responsibility with others--assistant principals, teachers, and parents. This paper discusses two areas: (1) student learning enhanced through cultivation of critical thinking skills; and (2) teacher effectiveness promoted by restructuring training programs and by teacher evaluation. The Educational Testing Service Project STACI (Systems Thinking and Curriclum Innovation) uses computer simulations to teach students advanced problem-solving techniques, stressing the interconnectedness of human events. STELLA (Structural Thinking Experimental Learning Laboratory with Animation), the software running on Apple's Macintosh, couples varied content from the sciences and social sciences with higher order thinking skills to locate common elements. The Costa model and other research are also described. To improve teacher effectiveness, the Holmes Group has developed an innovative proposal for overhauling schools of education. Recommendations include eliminating undergraduate teacher training; strengthening prospective teachers' liberal arts background; designing a three-step career path; establishing professional development schools paralleling teaching hospitals; and thorough evaluation of teachers in writing, speaking, and delivery style. Relationships between teacher scores on standardized measures (or grade point averages) and student achievement or principal ratings have not been clearly established. Imprecise definitions of critical thinking and teacher effectiveness have contributed to uncertain or contradictory resarch findings in both areas. (47 references) (MLH)