Restructuring of schools is best done by principals who enable the reaching of shared goals, as opposed to controlling people or their behavior. The emphasis should be on using power to give others power, to help them to be leaders and managers themselves. This edition responds to current issues of accountability for student outcomes. New data are drawn from three studies that examine models offered by the Classroom Alternative Process (CAP), the least restrictive environment initiative, and the Coalition of Essential Schools. Also explained are the current forces affecting the restructuring of schools, why the multiple changes need to be effected concurrently, and what characteristics a dynamic school has. Guidelines are given for facilitating cohesive work groups and motivating and coordinating experimentation to effect change. The principal also must be a balancer between hierarchical demands and interpersonal relationships within the hierarchy. He or she should be an assessor of the effectiveness of attempted changes, and a learner willing to change beliefs with new information. Primarily, he or she should be an accountable and dynamic leader, unafraid of change, even when this type of leader is not yet in the majority. (Contains 269 references.) (RKJ)