Principals play an important role in the success of externally funded change projects in their schools. Interviews exploring the participation of principals in such projects in 14 Oregon elementary and secondary schools provided 11 case studies illustrating helpful and unhelpful behaviors. The projects were found to have life cycles of their own, and different behaviors were important at different stages in these cycles. Eight kinds of behavior were identified as crucial, four concerning project tasks and four directed toward building relationships and giving support. A variety of leadership styles, roles, and behaviors proved workable, provided that they were fitted to the particular staff, project, school, and principal concerned. Accurate diagnosis of the situation and adaptation of style and behavior to that situation were characteristics of the successful principal. This report concludes by describing and discussing applications of Situational Leadership Theory and by discussing the needs for inservice training for administrators based on a realistic appraisal of educational organization. The interview form used in the study is appended, and a review of relevant literature included. (PGD)