Presented in this document, a product of the project on Documentation and Technical Assistance in Urban Schools (DTA), is a series of principles that can be used by members of schools and their consultants to improve the capacity of schools to solve their problems locally. References are made to the complexities of school problems and of human nature that have a bearing on any change strategy. Clusters of variables related to the vicious circle schools are often caught in when trying to reduce multiple or severe problems are discussed in conjunction with variables in human nature that hinder problem solving. Skills and knowledge that are considered essential to a school's capacity for solving problems are outlined and described in detail. Included are communication, diagnostic, and monitoring skills and knowledge of the complexities of humans and their school organizations, knowledge of variables affecting change in schools, and knowledge of the effects of using different sequences of action in change projects. Appended are summaries of research that show the best ways for consultants to assist schools in solving problems. (EB)