This report describes the theory and 1st-year operation of the Educational Management System, a district-developed approach designed to identify and structure instructional program needs by emphasizing decentralized decisionmaking and focusing on intended program results. The report observes that educators using EMS will continually improve their ability to respond to student needs by (1) regularly identifying the most pressing student needs in the classroom, (2) establishing objectives for student learning in high priority areas, (3) allocating personnel and materials according to objectives, and (4) demonstrating measurable improvements in student performance. The report outlines the steps to be taken by each teacher and principal in preparing his EMS statement, and reproduces several sample statements. (Author)