I would be Kage of Kumogakure, and I would turn it into a semi-communistic society, similar to most villages.
Everyone without children would be to work jobs in the village to stimulate the economy. This money would go towards providing care for the sick, both academic and shinobi education alike, and towards defenses for the village, namely establishing defense along paths to and from the village.
Ranks for Ninja..? Well, I'd keep everything pretty much the same as it were now, and cooperate with other villages, namely the Leaf in their exams. Potential Genin would not only undergo a written test about what they thought a ninja was, how to respond to combat situations, etc. but they would also demonstrate all basic jutsu types. Genin who had been successful in over 25 C ranked missions and had been shinobi for a period of at least two years would be eligible to become Chunin. Chunin who had been successful in over 50 B ranked missions and had been Chunin for a period of at least 3 years would be eligible to become Jonin. Jonin that have successfully accomplished every mission they've been tasked since their promotion for a period of six months would be eligible for a Special Operations unit.
Leniency on Forbidden Jutsu, but the only ninja legally allowed to use it would be high ranking Jonin and members of the Special Operations unit. The only jutsu strictly forbidden would be the Edo Tensei and Curse Marks of any kind.
Laws I would create would enforce equal treatment of everyone in the village, cleanliness of the village streets and exteriors of the buildings, with interiors also enforced for eateries and centralized establishments. For shinobi it would be to never leave a comrade behind or betray them, and to always listen to your sensei, unles they themselves were instructing their students to do illegal things.
I would train a select amount of shinobi high ranking lightning jutsu, similar to Kirin. This would make an assault on the village from a nearby mountain nearly impossible, and I would also leave a barrier squad ready at all times, with a secret evacuation route for civilians that would lead them to sea level. Shinobi would stay in the village and lie in wait for the enemy to breach the village, and then launch synchronized attacks on the enemy until they were defeated or had retreated from the village.
