Perceived educational strengths and weaknesses of Appalachian schools are examined as indicators of school effectiveness in this study, which is based on the formula that the expectations people have of schools minus the perceptions of how those expectations are met equals a dissonance factor. The School Effectiveness Inventory (SEI), which evaluates 16 academic, work, and personal outcomes, was administered to 237 tenth- and twelfth-graders, 158 teachers, and 64 business leaders in 3 Kentucky and 3 Tennessee rural Appalachian school districts. Findings indicate that each group held similar educational expectations, but that academic and work-related outcomes were more important than personal ones. Although school performance outcomes were similar, the groups perceived their schools' performances differently; students were most satisfied and teachers were least satisfied with school outcomes. Finally, educational expectations and values varied somewhat by state and participant group. Appendices include the SEI and scores, mean scores of expectations and school performance, dissonance scores, and four graphs. (LMI)