This report describes some of the new demands on school leaders and identifies what schools, districts, states, and the federal government can do to strengthen the ability of principals and other educators to become instructional leaders. It begins by offering different definitions of instructional leadership and describing standards that provide guidance for the professional development of school principals. Shortcomings of present-day programs in school leadership are presented, such as the emphasis on theory. Suggestions follow on how to make practical "hands-on" experience part of principal-development programs. Two professional-development initiatives demonstrate the usefulness of inschool, continuous-learning programs in Kentucky and New York. Recommendations include: (1) having the federal government expand Title I legislation to include principal professional development and set money aside to fund such programming, create a national board on school leadership, and conduct research and forge coalitions on professional development; (2) having states develop quality review and accountability for professional-development programs, make greater investments in school-based professional development for school leaders, and fund teacher-leadership academies; and (3) having schools, networks, and districts encourage principals to distribute leadership in their schools, and make time for professional development. (Contains 28 references.) (RT)