This research reveals a serious problem of insufficient enrollment in private high schools and vocational high schools, and that the situation is even more acute for the vocational ones. Finding ways to cope with the rapidly deteriorating surroundings and to survive is a crucial task for the school managers in the coming twenty years. The objects of this study include the directors and teachers of private high schools and vocational high schools in Taiwan. A questionnaire was designed to interview a sample of to investigate the correlations among operating strategy, executive ability, and operating performance. In accordance with the correlations and the extent to which they influence the results, some feasible coping alternatives were proposed for these schools. The structural equation modeling (SEM) technique was used to analyze the data collected. The results show that the model corresponds to the theoretical framework in the literature. The results of this research prove that the following hypotheses are correct: 1. Operating strategy has positive direct impact on operating performance. 2. Operating strategy has positive direct impact on executive ability. 3. Executive ability has positive direct impact on operating performance.
