The conceptual categories that underlie the business analysis of intellectual capital are relevant to providing an explanation of school performance. By gathering data on student learning, this research provides empirical evidence for the use of school results as an accurate indicator of the effectiveness of the management of public education. This article concludes that schools are essentially knowledge-based organizations, but that is not enough for them to operate as effective learning organizations. (Contains 4 notes, 1 figure and 6 tables.)