Carnegie Corporation invited 11 high school and middle school principals representing city schools serving minority or racially mixed disadvantaged communities to participate in a conference on the role of the principal in urban schools. These principals provided evidence that strong leadership can turn the most violent, crime-ridden, racially torn institution into a place of instruction and learning. Kenneth Tewel, the organizer of the conference, studied three urban principals recognized as effective leaders of high schools in crisis to examine the long-term impact of their behavior upon the school community. When faced with a crisis, they all operated on intuition, relying on any available sources of support to help them begin the change process. None was aware of the theoretical underpinnings of the strategies they were using, and at least two were unaware of the ways the changes they instituted might affect the school's culture. Results of the conference indicated that: (1) principals must be much more than instructional leaders; (2) principals need supportive networks and training; (3) schools must balance the social service and instructional needs of children; and (4) more knowledge about the actual conditions under which principals manage urban schools is needed. (ETS)