This guidebook presents practical, everyday applications of effective school leadership principles. Chapter 1 describes the roles and responsibilities of school leaders today. Chapter 2 presents a litmus test of school leadership, which is described in terms of vertical and hierarchical models. Problem-solving techniques are presented. The role of the school as "socializing agent" at the turn of the century is examined in the third chapter. The evolution of the school's role, significant demographic trends, and the context for the current role of educational leadership are described. Chapter 4 offers suggestions for instructional leaders. School Management by Wandering Around (SMBWA) is presented as a means for becoming better acquainted with the school and teachers and for maximizing people power. The final chapter describes a three-step process for building an institution: (1) set goals; (2) assess the school culture; and (3) establish a diagnostic/prescriptive development cycle. Checklists and sample planning forms are provided. References accompany each chapter. Six tables and 6 figures are included. (LMI)