Prepared to assist teachers who are using the case in class discussion, this case study describes a suburban, college-preparatory high school located in the pseudonymously named "Northwood," a midwestern "rust belt" city characterized by rapidly shifting demographics and a growing commercial tax base. Although the city is now 25 percent black, another newer high school remains predominantly white. Over the past 15 years, Northwood High has shifted from 70 percent white to 70 percent black and other minorities. Although black students are economically similar to the Jewish families they have replaced, teachers found them culturally different and behaviorally challenging. Morale was at its worst when Principal Don Hawley arrived; a reformer at heart, he immediately initiated two new programs: a Positive Peer Influence (PPI) program that broadened students' role in improving discipline and a participatory decision-making program that gave teachers responsibility for policy. The Faculty Senate has proved a mixed blessing. Some teachers find it too formal or too disruptive; others appreciate having more say. Teachers are positive concerning the PPI and other human relations innovations and evince a caring attitude toward students. Teachers are divided about the disciplinary system: while most feel it works pretty well, a few feel that the teacher's position has been undermined by the school's student empowerment focus. Almost no teachers have voluntarily left during the past decade. An appendix provides descriptions of additional school characteristics. Case teaching notes are also appended. (MLH)