ABSTRACT External accountability is embedded in every school system across the United States. This dissertation study focuses on how ten principals negotiate the accountability system placed upon their school by the state of Arizona. The federal accountability policy, No Child Left Behind (NCLB), requires that states use a standardized assessment to document student achievement. Arizona's policy to meet the federal requirements of NCLB is Arizona Learns (AZLearns). AZLearns outlines the formulas for determining which schools are achieving and which schools need to improve. Each school is tagged with a label annually. The labels are Excelling, Highly Performing, Performing Plus, Performing, Underperforming and Failing. The foundation of this study lies in the interpretation, application and negotiation of a school's label by its principal. To investigate the relationship between external accountability and the daily life of a principal, I interviewed ten Arizona elementary school principals. The research questions of this study are: (R1) What effects do external accountability measures have on the development of the organizational capacity of a school? (R2) How do Arizona principals negotiate their school's assigned label in their everyday professional practice? (R3) What are Arizona principals' views of the state accountability process? A qualitative, phenomenological research methodology was used to interview the participants and analyze their stories for common themes. The commonalities that surfaced across the experiences of the principals in response to the labels placed on their school are Accountability, Achievement and Attitude. This study found that Accountability was based on multiple interpretations of policies enforced by the federal government, state or district guidelines and parent or school expectations. Achievement was a result of multiple factors including data collected from test scores, the quality of teachers or instruction and the personal goals of the principals. Attitude was a process embedded in the high stakes testing era, boundaries or conflicts within the location of the school and the personal experiences of the principals. This research is an attempt to share the multiple voices of principals that may lead to alternative meanings or even provoke questions about the labeling system in Arizona schools.