This document suggests an agenda for restructuring New York City elementary schools and improving their leadership, based on interviews with 25 inner-city elementary school principals. Participants were selected on the basis of their competence and their commitment to the education of economically disadvantaged students. The following policy and action options for restructuring are emphasized: (1) collaboration of school and nonschool groups to foster a unified approach; (2) focus on success for all children and changing teaching practices; (3) adequate time, funds, and technical assistance for restructuring activities; (4) reducing school size; (5) linkage of governance to restructuring; and (6) provision of an adequate budget. The following policy options for the selection, support, and removal of principals are emphasized: (1) development of leadership criteria; (2) improvement of the selection process, including involvement of parents, teachers, and civic groups; (3) long-range development of future principals; (4) support for new and experienced principals, including increased support staffs; (5) deemphasis of paperwork and bureaucratic procedures; and (6) development of a new framework and procedure for removing principals. (FMW)