A comprehensive review of current thinking about the preparation, selection, induction, and assessment of school principals is provided in this digest. Methodology is based on a review of recent literature on the principalship and on interviews with several educators. Following an introduction, the first chapter examines inadequacies of principal training and describes strategies for improvement. The second chapter examines the ways in which principals are recruited and selected, offering suggestions for expanding the applicant pool and for selecting capable candidates. The induction process is examined in the third chapter, which describes problems and offers recommendations for the school district and beginning principal. The fourth chapter discusses the evaluation process, describing confidential feedback strategies and a sample evaluation program. A conclusion is that because the principal is a crucial factor of school effectiveness, school districts must systematically plan for principal preparation, selection, induction, and evaluation. Five tables and one figure are included. (82 references) (LMI)