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This study examined how school leaders’ internal and external activities mediate the relationship of school leaders’ personality traits from the big five typology and the contextual factors of functional heterogeneity, intra-team goal interdependence and inter-team goal interdependence to team and school effectiveness. The results of the Structural Equation Model from a sample of 92 schools indicate that principals’ internal activities fully mediate the relationship between extraversion and conscientiousness, team functional heterogeneity, intra-team goal interdependence and inter-goal interdependence to team effectiveness. The principals’ external activities were found to fully mediate the relationship between extraversion, team functional heterogeneity, intra-team goal interdependence, and inter-goal interdependence to school effectiveness. We discuss the implications of these findings for both theory and practice