Study the private school model. Examine budgets, staff-student ratio and operational expenses to get an idea of costs involved in running the school as a business. Look at how private schools run their operations and determine what sort of fees would have to be charged on a per-pupil basis to make it a viable operation.
Turn the parents into consumers. Give parents a voucher for tuition for the year -- based on the calculation of the cost of private education -- and have them pick the school where they want to spend their educational dollar. As well as giving parents more control, it would encourage operations such as home schooling and small "private" schools that operate with the "public" money.
Elect a board of directors for the school. The board would be responsible for hiring staff and developing the educational policy of the school. In addition, they would be answerable to the parents. Rather than policy being set by faceless educational administrators, give the power to elected officials who are in turn responsible to the parents.
Make the parents shareholders who can attend the annual general meeting of the school -- or call additional meetings if required -- and participate in the development of the "corporate" school. Having "ownership" in the educational process, as shareholders, would encourage parents to become more involved in the school's policy development. Like shareholders, they could ask the hard questions at meetings, knowing administrators had to listen to their concerns or they would take their educational dollar elsewhere.
Pay the teachers bonuses. Just as the corporate world rewards people who perform well, extend the same policy to the teachers who consistently deliver quality instruction. Both standardized and school-developed tests could be used to measure progress and success ratings.