Previous research shows that successful schools have competent principals. In the Upper Cumberland Development District of Tennessee, 350 teachers and 350 parents were surveyed concerning the capability of principals in the district's most efficient schools. Eighty-four percent of the teachers and 78 percent of the parents completed the questionnaire. The survey responses reveal that parents and teachers generally disagreed on whether or not definite goals had been designated; on their degree of involvement in goal-setting; on the degree to which frequent communication with parents was characteristic of the schools; and on whether or not the school atmosphere facilitated learning. They generally agreed that the principals cared about academic achievement; that the principals were experienced in school matters; that the principals were not the instructional leaders of the schools; that the parents supported the schools; that the principals sufficiently notified the community concerning school matters; and that students spent enough time on instructional activities. The parents generally indicated a desire for more improvement than the teachers. An emphasis on communications is suggested. Included are 10 references, results of the questionnaire item by item, and an appended copy of the questionnaire. (RG)