American schools might improve their performance by emulating certain successful businesses that, while distinctly American, have much in common with Japanese corporations. William Ouchi attributes Japanese business success to worker involvement; the typical Japanese corporation, he asserts, unifies its employees around a corporate philosophy transmitted through a corporate culture. Most American businesses, by contrast, are plagued with instability, as workers seek career growth at the expense of the company. American "Type Z" corporations, however, have attained prosperty and stability because, like Japanese corporations, they are people-centered and purposeful organizations. Meanwhile, despite growing criticism of American education, school effectiveness research has found examples of highly successful schools. The "Type Z" school is a new model that draws on both these analyses. The characteristics of such a school include: (1) a clear philosophy stressing excellence, equity, and enrichment in an optimistic environment; (2) a curriculum reflecting community goals and values; (3) classroom practices congruent with the school philosophy; (4) a sense of community among and between teachers and students; and (5) a strong principal providing symbolic leadership, instructional leadership, and group facilitation. (MCG)