The necessity for training highly competent individuals to assume educational leadership positions will be critical in the near future, since a sizeable percentage of school administrators and professors of educational administration will retire over the next decade. The programs preparing current administrators are not equipped to meet the demands of 21st century schools. This paper describes an initial attempt to reform principal preparation programs using a five-step process. Administrator preparation requirements outlined by the National Commission on Excellence in Educational Administration in 1987 include five strands: (1) the study of administration; (2) the study of educational administration's technical core; (3) application of research findings and methods to problems; (4) supervised practice; and (5) demonstration of competence. The American Association of School Administrators has developed guidelines featuring the most critical goals, competencies, and delivery components for inclusion in administrator preparation programs. The National Association of Secondary School Principals has also identified 12 important skill areas. In 1987, the Kentucky State Department of Education mandated that educational administration programs in the state provide knowledge in 11 areas and directed reforms initiated at Western Kentucky University. The Department of Educational Leadership received a Danforth Foundation grant to further exemplary and innovative administrator preparation programs. The program's five stages are program admission, formal course work, testing, the oppportunity for supervised practice and demonstration of competence, and mentoring. Included is a list of 17 references. (MLH)