This book is based on the belief that the American education system is in crisis and requires radical systemic change. Because this change is to be designed and carried out by those within schools and not through external mandates, the book focuses on the management responsibilities of the principal and teachers. It draws heavily on the psychological theories of William Glasser and the management principles of W. Edwards Deming, calling for an outcome-based approach to education. However, the book does not subscribe to the conservative agenda advocated by business and industry, which calls for more testing. The 18 chapters in the book are divided into 3 parts. Part 1 outlines Deming's 14 points and Glasser's control theory and applies them to education. Part 2 examines the role of the principal as lead manager and the principal-teacher relationship. The principal's primary mission is to facilitate the teachers' efforts to organize the classroom for quality learning and exercise leadership in the development of a positive and healthy school climate. Several chapters describe the principal's role in the following areas: consensus decision making, staff development and selection, discipline, family involvement, and district responsibilities. Part 3 describes ways in which teachers can manage the classroom to promote quality learning, with a focus on developing an integrated curriculum, facilitating learning, and establishing noncoercive guidelines for classroom behavior. Appendices contain questions and answers for understanding and implementing the transformation stages and assessment scales. Nine figures and 10 tables are included. Contains 57 references and an index. (LMI)