An insightful overview of what makes schools effective is presented. The report is based on a study of 272 schools that have been recognized by the Department of Education as exemplary, with particular focus given to the 60 private elementary schools within this group. Themes and characteristics that are frequently mentioned include strong leadership, good teaching mixed with commitment and teamwork, high morale, self-reliance, and autonomy. Eligibility requirements and selection criteria are given. A list of the schools recognized in 1986 is also included. (CB)