This study presents research on the Psychological Capital Questionnaire (PCQ-24) and the Authentic Leadership Questionnaire (ALQ) in a sample of Arizona secondary school principals. A comprehensive literature review was conducted linking the constructs of psychological capital and authentic leadership to other forms of positive leadership, effective organizational change theories, positive psychology, organizational learning, and empirical research on effective schools. A conceptual model of effective leadership for positive organizational was developed with psychological capital and authentic leadership as critical components.