This chapter reviews recent trends toward increasing emphasis on excellence in American business and applies these trends to school reform and restructuring in the context of gifted education. First, it notes the main ideas of recent business and education excellence studies which call for radical changes in the American education system. Examined is the dilemma of balancing the educational demands of equity and excellence especially in an age of major demographic shifts. A quality-oriented paradigm is proposed which merges equity and excellence and focuses on the individual thus replacing the industrial model paradigm which focused on the "system". The issue of ability grouping is considered and research supporting within class grouping is cited. Concepts underlying the middle school approach are noted as another example where the equity/excellence dilemma and grouping concerns emerge. "Equifinality" is offered as a concept which suggests many potential ways to reach resolution especially when the focus is always on the individual gifted learner and the teacher/facilitator. (18 references) (DB)