Schools for Quality Education, an organization of some 80 small Kansas schools, and the Center for Rural Education and Small Schools (College of Education, Kansas State University) in 1986-87 jointly investigated the effectiveness of representative smaller schools serving Kansas's rural areas. Phase 1 identified the most important indicators of school quality and effectiveness across all respondent groups--teachers, students, administrators, boards of education, and adult community members. The 31 indicators were generally those derived elsewhere by educational researchers; among them are the following: creative teaching exists; there is good student and teacher attendance; clear standards of conduct are established; principals provide strong leadership; parents feel involved and belong. Phase 2 determined the extent to which the indicators were found in local schools. No indicator had a mean rating at or below the mid-point of the 5-point scale, showing all groups rated their schools high on quality indicators. School staff were the most positive and students the least. Correlation coefficients were derived for each indicator with revenue/pupil, district size and wealth, and pupil/teacher ratio. School district wealth/pupil revenue were positively related to perceived quality/effectiveness, while school enrollment and pupil/teacher ratio were not. Profiles for the five most and five least effective schools were compiled. A bibliography and appendices containing sample forms, letters, and questionnaires conclude the report. (JMM)