School principals are an important factor in the improvement of American schools. Key findings of two studies show that principals are the most significant people in the educational change process. Outlined are seven important steps involved in the process of instructional improvement that will take place only if committed and knowledgeable leadership is present in an effective principal. Effective/creative schools can be characterized as follows: (1) They are close to students and foster open working relationships between teachers and pupils; (2) Their principals work through and with people; (3) They focus on simple organizational form and lean management staff; and (4) They are governed by a practice called "simultaneous, loose-tight properties." Administrators, teachers, students, and the public will move toward improved instruction in the years to come through hard work and diligence. (MD)