This article describes a paradigm shift in education management, as well as various theories on sustainable and transformational leadership. In the context of existing theories, the article analyses the results of an empirical study on the use of teamwork principles in general educational institutions in Latvia, with particular emphasis on the significance of schools' culture and teamwork in the development and improvement of general educational institutions. Principals from 51 general educational institutions in Latvia participated in this study. Schools were selected at random. The introduction of teamwork in the management of general educational institutions requires changes and innovations in the whole structure, at all levels and in the general culture of a school. Application of teamwork principles requires a new approach to management, which, in turn, changes the paradigms and leadership philosophy of educational institutions. Results of the study show that school principals support involvement of teachers in school management, which is undeniably a challenge for the entire school; however, principals have different opinions about the openness and readiness of schools for such changes. The study also identified the need to improve communication and trust among teachers because these factors are essential for teamwork and culture.