Education policymakers agree that the principal plays a key role in creating the high-performing schools that the public demands today. There is a growing concern, however, that the supply of quality candidates may not meet the increasing demand for new principals caused by retirements among the current ranks combined with new school openings. This report presents a brief review of what research has to say about the importance of effective principals to effective high-performing schools and identifies the characteristics of these principals. It discusses factors contributing to the concern about a shortage of quality candidates for the principalship, and describes programs designed to face some of these problems. While current principals are quick to talk about the satisfactions of their jobs, they also agree on aspects that tend to discourage others to apply for available positions. Long and often stressful days and compensation that many principals see as insufficient to balance these demands are disincentives to a career as a principal. Perspectives of current principals about these issues are presented to provide an important context--that of the successful practitioner. The report suggests "next steps," since without action directed toward addressing the barriers to attracting and retaining quality people in the principalship, shortages are likely to become more serious. (Contains 5 pages of references.) (DFR)