Alchemy is the magical or mysterious power or process involving chemistry, magic, and philosophy in transforming one thing into another. The term is often used to describe the medieval study that sought to transform cheaper metals into gold or silver. "Educational alchemy" is the process by which schools are converted into more effective learning environments. This paper presents a school-transformation formula that synthesizes theoretical contributions from professional literature and practical applications from personal experience as they relate to the following aspects of learning environments: vision, mission, data collection, goals, culture, change, and empowerment. The transformation formula is based on 20 years of school leadership at the elementary, middle, and high school levels in a variety of socioeconomic and racial settings. (Contains 63 endnotes.) (LMI)