The changing role of the principal under school-based management is examined in this paper. The implementation of the Chicago School Reform Act in 1989 shifted responsibility for school governance from the Central Board of Education to school-based management councils at each of the city's schools. Interviews were conducted with 10 elementary and 4 high school principals. With regard to role changes, principals reported that they have assumed the roles of information provider and leader for their local school councils (LSCs). They also said that they must now share authority with various constitutional groups and consult with LSCs and faculty on most decisions. They have greater discretion over budgeting and flexibility in programming, but experienced the following negative changes in the work environment: longer hours; lack of job security; accountability to 10 new bosses; and additional responsibilities without pay. External factors that affected principals' work included an underfunded system and an unresponsive central office. Other issues to be addressed are the need to delegate tasks and share accountability. A summary table is included. (Contains 6 references.) (LMI)