Empowerment, also referred to as shared decsion making and site-based decision-making, is essential to school reform and to the preparation of students for the changing demands of a global and technological world. This paper describes the role of the principal in facilitating empowerment in the school. The principal is the building leader who structures the climate to empower both teachers and students at the site. Personal characteristics and skills necessary for the principal's success have been identified by writers such as Fiske and Covey, as well as many other researchers. Primary characteristics include honesty, trust, and patience while skills such as communication, problem solving, and modeling are essential for the process. Benefits of empowerment have been linked to improved academic performance and instruction, increased involvement of teachers, and ownership of the decisions. Training and the development of leadership skills are also integral parts of empowerment. Improved communidation and input into decisions lead to better decisions. Empowerment exemplifies a paradigm shift with the decsions made by those working most closely with students rather than by those at the top of the pyramid. The principal is the leader in implementing and supporting empowerment. (Contains 18 references.) (Author)