This paper will explore the effect of changed decision- making structures on cultural identities among principals and teachers, and the trade-off between accountability and autonomy in schools. It will connect and extend Moller's work in two upper secondary schools with agendas for change which are focused upon reforms initiated by Parliament. The study will explore how the principals understand their own work, how they construct their professional identities, and how they cope with recent reforms. It will address issues such as the impact of structural changes on their relationships with teachers, on developing professionalism and on processes of educational administration.