The purpose of this research was to determine how teachers and administrators in a successful North Carolina district perceived the purpose and value of a school improvement plan (SIP) and the planning process. The SIP is the accepted best practice for school-wide improvement, and the perceptions of the purpose and value of the process significantly affect its success. This study revealed that the principals and teachers possessed very divergent perceptions regarding all phases of the SIP process. This study underscores the practical importance of developing organizational coherence on basic aims and values before engaging in organization-wide school improvement.