U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


    [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
          FEBRUARY 28, 1998
   OR

    [  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
          SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
          ______________TO ____________


   Commission file number 0-23438

                       Effective Management Systems, Inc.
             (Exact name of registrant as specified in its charter)

                 Wisconsin                             39-1292200
      (State or other jurisdiction of     (I.R.S. Employer Identification No.)
       incorporation or organization)

    12000 West Park Place, Milwaukee, WI                 53224
      (Address of principal executive                  (Zip Code)
                  offices)

   Registrant's telephone number, including area code: (414) 359-9800


   Indicate by check mark whether the registrant (1) has filed all reports
   required to be filed by Section 13 or 15(d) of the Securities Exchange Act
   of 1934 during the preceding 12 months (or for such shorter period that
   the registrant was required to file such reports), and (2) has been
   subject to such filing requirements for the past 90 days.  Yes  __X___     
    No _______


   Indicate the number of shares outstanding of each of the registrant's
   classes of common stock as of the latest practicable date.


                Class                    Outstanding as of February 28, 1998

     Common Stock, $0.1 par value                     4,079,455

   <PAGE>

                       EFFECTIVE MANAGEMENT SYSTEMS, INC.
                                    Form 10-Q
                                February 28, 1998


                                      INDEX



   PART 1 - FINANCIAL INFORMATION                              PAGE

   Item 1    Financial Statements

             Consolidated Balance Sheets at
             February 28, 1998 and November 30, 1997             3

             Consolidated Statements of Operations - Three
             Months Ended February 28, 1998 and 
             February 28, 1997                                   5

             Consolidated Statements of Cash Flows - Three       
             Months Ended February 28, 1998 and February 28,
             1997                                                6

             Notes to Consolidated Financial Statements          7


   Item 2    Management's Discussion and Analysis of Financial
             Condition and Results of Operations                 9

   Item 3    Qualitative and Quantitative Disclosures About
             Market Risks                                        14



   PART II - OTHER INFORMATION


   Item 6    Exhibits and Reports on Form 8-K                    15


   SIGNATURES                                                    16


   <PAGE>

   PART I Financial Information
   Item 1 Financial Statements

   EFFECTIVE MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
   CONSOLIDATED BALANCE SHEETS
   (in thousands)(unaudited except for November 30, 1997 amounts)             


                                              28-Feb              30-Nov
    ASSETS                                     1998                1997
    CURRENT ASSETS
      Cash                                     $   284           $    14
      Accounts Receivable:
        Trade, less allowance for
         doubtful accounts                      11,049            12,370
      Related Parties                              566               604
      Inventories                                  161               280
      Refundable Income Taxes                      312               312
      Deferred income Taxes                          0                 0
      Prepaid Expenses and Other Current
         Assets                                    355               146
                                                ------            ------
         TOTAL CURRENT ASSETS                   12,727            13,726

    LONG TERM ASSETS
    Computer Software, net                       7,770             7,717
    Investments in and Advances to
      Unconsolidated Joint Ventures                182               182
    Equipment and Leasehold
      Improvements, net                          3,639             3,917
    Intangible Assets, net                       2,386             2,444
    Other Assets                                   803               811
                                                ------            ------
         TOTAL LONG TERM ASSETS                 14,780            15,071
                                                ------            ------
    TOTAL ASSETS                               $27,507           $28,797
                                                ======            ======


        The accompanying notes are an integral part of these consolidated
   financial statements.

   <PAGE>

   EFFECTIVE MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
   CONSOLIDATED BALANCE SHEETS
   (in thousands, except share data)(unaudited except for November 30, 1997
   amounts)

                                             28-Feb             30-Nov
    LIABILITIES AND STOCKHOLDERS' EQUITY      1998               1997
    CURRENT LIABILITIES
      Accounts Payable                       $ 1,967           $ 2,272
      Accrued Liabilities                      1,455             2,773
      Deferred Revenues                        6,090             5,887
      Customer Deposits                          188                63
      Current portion of Long-term
        Obligations                              918               946
                                             -------           -------
         TOTAL CURRENT LIABILITIES            10,618            11,941

    LONG TERM LIABILITIES
      Deferred Revenue and Other
    Long-term Liabilities                      1,074               317
      Long-term Obligations                    4,265             3,966
      Deferred Income Taxes                        0                 0
                                             -------           -------
         TOTAL LONG TERM LIABILITIES           5,339             4,283

      Commitments and Contingencies                -                 -

    STOCKHOLDERS' EQUITY
      Preferred Stock, $.01 par value,
        authorized 3,000,000 shares;
        none issued or outstanding                 -                 -
      Common Stock, $.01 par value;
        authorized 20,000,000 shares;
        issued 4,079,455 and
        4,067,310 shares; outstanding
        4,066,830 and 4,054,685 shares            41                41
      Common Stock Warrants                        4                 4
      Additional Paid-in Capital              11,361            11,328
      Retained Earnings                          204             1,260
      Cost of Common Stock in Treasury
        (12,625 shares)                          (60)              (60)
                                             -------           -------
         TOTAL STOCKHOLDERS' EQUITY           11,550            12,573
                                             -------           -------
    TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY                                 $27,507           $28,797
                                             =======           =======



        The accompanying notes are an integral part of these consolidated
   financial statements.

   <PAGE>

    EFFECTIVE MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except per share data) (unaudited)


                                             THREE MONTHS ENDED
                                           28-Feb          29-Feb
                                            1998            1997

    NET REVENUES:
      Software license fees                $5,335          $4,211 
      Services                              4,239           4,246 
      Hardware                                672           1,018 
                                          -------         ------- 
        Total net revenues                 10,246           9,475 

    COST OF PRODUCTS AND SERVICES

      Software license fees                 1,723           1,177 
      Services                              3,220           3,701 
      Hardware                                527             882 
                                          -------         ------- 
        Total cost of products and
          services                          5,470           5,760 

    Selling and marketing
     expenses                               3,625           3,381 

    General and administrative
     expenses                               1,194           1,065 

    Product development
     expenses                                 837             704 
                                          -------         ------- 
        Total costs and operating
          expenses                         11,126          10,910 
                                          -------         ------- 
    LOSS FROM OPERATIONS                     (880)         (1,435)

    Other (Income)/ Expense

      Equity in (earnings)/loss of
        unconsolidated joint ventures           0               2 
      Interest (income)                       (10)            (15)
      Interest expense                        153              75 
                                          -------         ------- 
                                              143              62 
                                          -------         ------- 
    LOSS BEFORE INCOME TAXES               (1,023)         (1,497)

    Income tax (benefit)
      expense                                  33            (614)
                                          -------         ------- 
       NET LOSS                           ($1,056)          ($883)
                                          =======         ======= 
    Loss per share - basic and
      diluted                              ($0.26)         ($0.22)
                                          =======         =======


    The accompanying notes are an integral part of these
    consolidated financial statements.

   <PAGE>

    EFFECTIVE MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands) (unaudited)

                                                    THREE MONTHS ENDED
                                                    28-Feb        28-Feb
                                                     1998          1997
    OPERATING ACTIVITIES
      Net Loss                                     ($1,056)       ($883)
      Adjustments to reconcile net
       income(loss) to net cash 
       provided(used) by operating
       activities:
        Depreciation and amortization                  352          281 
        Amortization of capitalized computer
          software development costs                   954          644 
        Equity in earnings of joint ventures             0            0 
        Goodwill Amortization                           58           58 
        Deferred income taxes                            0            0 
        Changes in operating assets and
          liabilities:
       Accounts Receivable                           1,270          917 
       Inventories and other current assets             (1)        (774)
       Accounts payable and other
        liabilities                                   (538)        (922)
                                                   -------      ------- 
      Total adjustments                              2,095          204 

      Net cash provided by(used in) in operating
        activities                                   1,039         (679)

    INVESTING ACTIVITIES
        Additions to equipment and leasehold
          improvements                                 (74)        (454)
        Proceeds from sale of securities                 0          250 
        Software development costs
          capitalized                               (1,008)        (938)
        Other                                            8           (2)
                                                   -------      ------- 
      Net cash used in investing activities         (1,074)      (1,144)

    FINANCING ACTIVITIES

        Proceeds on long-term debt and other
          notes payable                                272        1,016 
        Additional paid in capital                      33           70 
                                                   -------      ------- 
      Net cash provided by financing
        activities                                     305        1,086 
                                                   -------      ------- 
      Net increase(decrease) in cash                  $270        ($737)

    Cash-beginning of period                            14          866 
    Cash-end of period                                 284          129 
                                                   =======      ======= 


    The accompanying notes are an integral part of these consolidated
    financial statements.

   <PAGE>

                       EFFECTIVE MANAGEMENT SYSTEMS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                February 28, 1998
                           (Unaudited) (In Thousands)

   Note 1 - Basis of Presentation

        The accompanying consolidated interim financial statements included
   herein have been prepared by Effective Management Systems, Inc. (the
   "Company"), without an audit, in accordance with generally accepted
   accounting principles for interim financial information and pursuant to
   the rules and regulations of the Securities and Exchange Commission. 
   Certain information and footnote disclosures normally included in
   financial statements prepared in accordance with generally accepted
   accounting principles have been condensed or omitted pursuant to such
   rules and regulations, although the Company believes that the disclosures
   made are adequate to make the information presented not misleading.

        In the opinion of management, the information furnished for the
   three-month periods ended February 28, 1998 and February 28, 1997 includes
   all adjustments, consisting solely of normal recurring accruals, necessary
   for a fair presentation of the financial position and results of
   operations for the interim periods.  The results of operations for the
   three months ended February 28, 1998 are not necessarily indicative of the
   results of operations to be expected for the entire fiscal year ending
   November 30, 1998.  It is suggested that the interim financial statements
   be read in conjunction with the audited consolidated financial statements
   for the year ended November 30, 1997 included in the Company's Annual
   Report on Form 10-K filed with the Securities and Exchange Commission.

   Note 2 - Additional Financial Disclosure

   Equipment and leasehold improvements consisted of the following:

                                       2-28-1998   11-30-1997

   Gross                                 $9,433        $9,359 
   Less:  Accumulated Depreciation      < 5,794>      < 5,442>
                                         ------        ------ 
   Net                                   $3,639        $3,917 

   Allowance for doubtful accounts
    consisted of the following:

                                       2-28-1998    11-30-1997
   Balance                               $  498        $  462 

   Provision for doubtful accounts
    consisted of the following:

                                       2-28-1998    11-30-1997
                                         $   36         $  17 


   <PAGE>

   Note 3 - Net Loss Per Share

   In February 1997, the Financial Accounting Standards Board issued
   Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per
   Share."  SFAS No. 128 replaced the calculation of primary and fully
   diluted earnings per share with basic and diluted earnings per share.  
   Unlike primary earnings per share, basic earnings per share excludes any
   dilutive effects of options and warrants.  Earnings per share amounts for
   all periods have been presented and, where appropriate, restated to
   conform to SFAS No. 128 requirements.

   The following table sets forth the computation of basic and diluted
   earnings per share.


                                                       
                                                     February 28,
                                                   1998         1997

   Denominator
   Denominator for basic earnings per share -
     weighted average common shares               4,075        4,025
   Effect of dilutive securities - stock options 
     and warrants
                                                 ------      -------
   Denominator for diluted earnings per share -
     adjusted weighted average common shares      4,075        4,025


   Item 2. Management's Discussion and Analysis of Financial Condition and
   Results of Operations


   Overview

   The Company recorded an increase in net revenues (8.1%) and  a net loss of
   $1,056,000 for the first quarter of fiscal 1998 compared with a net loss
   of $883,000 for the first quarter of fiscal 1997.  The first quarter of
   fiscal 1998 does not reflect a tax benefit relating to the loss since for
   book purposes the Company is in a loss  carryforward  position.  On an
   operating income basis, the Company recorded a net loss of $880,000 for
   the first quarter of fiscal 1998 compared with a net loss of $1,435,000
   for the first quarter of fiscal 1997.  Software revenues were up
   significantly (26.7%) in the first quarter of fiscal 1998 compared to the
   same period in the prior year.  Management believes this increase in
   software revenues to be mainly from increased sales of the Company's
   latest version of its software introduced in November 1997. The new
   version of the product basically completed two major development projects,
   namely the inclusion of a Microsoft Windows user interface, and the
   development of an integrated manufacturing execution system (MES).  As a
   result of disappointing financial results, the Company is currently
   reviewing  strategic alternatives as well as restructuring options in an
   attempt to enhance its recent financial performance.  No assurance can be 
   given that these various measures will enable the Company to return to 
   profitability. 

   On April 13, 1998, the Company announced a material restructuring of the
   corporation which will incude a reduction of staff, internal
   reorganization, the write-off of some assets and the closing of some field
   offices.  Although the Company has not finalized the details of the
   restructuring, it currently estimates that the restructuring will result
   in a one time charge against earnings of approximately $6 million during the
   fiscal second quarter.  In an additional announcement on April 13, 1998,
   the Company announced a strategic alliance with Baan Company under which
   the Company will package the Baan Enterprise Resource Planning (ERP) 
   software with its Manufacturing Execution System (MES) technology to 
   mid-market manufacturers.  The alliance also includes the KeyLink Systems 
   Division of Pioneer-Standard Electronics, Inc., which will provide bundled
   hardware along with pre-installed software to the Company for installation 
   at customer sites.  Management of the Company believes that this move  
   represents a significant enhancement of its product line-up for the heart
   of its market-the mid-range discrete manufacturer.

   Results of Operations

   Total Revenues


   Net revenues increased to $10,246,000 for the three months ended February
   28, 1998, which was an increase of  8.1% from the $9,475,000 for the same
   quarter in the previous year.  The mix of revenues comparing software,
   services, and hardware revenues as a percentage of net revenues improved
   to 52.0%, 41.4%, and 6.6%, respectively, in the first quarter of fiscal
   1998, from 44.4%, 44.8%, and 10.8% , respectively, in the first quarter of
   fiscal 1997. The overall increase in revenues for the three months ended
   February 28, 1998 was attributable, in part, to a $1,124,000 increase in
   the level of relatively high margin software revenues, offset in part by a
   $346,000 decrease in relatively low margin hardware revenues. 

   International  revenues represented less than 10% of net revenues for all
   periods presented.

   The Company's operating revenues can vary substantially from quarter to
   quarter based on the size and timing of customer orders and market
   acceptance of new products.  The Company has historically operated with
   little backlog because software orders are generally shipped as orders are
   received.  As a result, product revenue in any quarter is substantially
   dependent on orders booked and shipped during that quarter.



   Software License Fees

   Software license fees are customer charges for the right to use the
   Company's software products.  Software license fees increased 26.7%  to
   $5,335,000 in the first quarter of fiscal 1998 from $4,211,000 in the
   first quarter of fiscal 1997.   The increase in software license fees was
   mainly attributable to the introduction of  a new version of the Company's
   software product which resulted in increased sales, particularly in the
   eastern domestic region ($819,000).  The new version of the product
   basically completed two major development projects, namely the inclusion
   of a Microsoft Windows user interface, and the development of an
   integrated manufacturing execution system (MES).  Management believes that
   the completion of these projects will enhance the Company's competitive
   advantage and provide significant customer benefit. 

   Service Revenues 

   The Company offers a number of optional services to its customers,
   including such services as a telephone support program, systems
   integration, custom software development, implementation consulting, and
   formal classroom and on-site training.  Service revenues remained
   substantially unchanged at  $4,239,000 for the three months ended February
   28, 1998,  as compared with $4,246,000 for the same period of the prior
   year. The Company has reduced the level of service personnel through
   attrition which, in turn,  has resulted in a reduction in growth of
   associated revenues.


   Hardware Revenues

   Hardware revenues decreased 34.0% to $672,000 in the first quarter of
   fiscal 1998 compared with $1,018,000  for the corresponding period of
   1997.   The decrease  was mainly  due to increased sales of software on
   platforms for which the Company does not supply hardware and the
   discontinuation of hardware sales to an affiliate of the Company, EMS
   Solutions, Inc. ($174,000)(See General and Administrative Expenses below). 
   Management expects the trend of declining hardware sales to continue due
   to the increasing sales of software licenses operating on the Microsoft
   Windows NT platform.  Hardware used with the Microsoft Windows NT platform
   is either generally already in place at the customer site or readily
   available from local suppliers who can also provide local support.


   Cost of Software License Fees

   The cost of software license fees as a percentage of related revenue was
   32.3% for the first quarter of fiscal 1998, an increase from 28.0% for the
   corresponding period of 1997.  Cost of software license fees is composed
   of both amortization of past investment in software development and the
   third party costs associated with the software revenues.  Software
   amortization is related to past investment in software development and
   does not vary  consistently with variations in software revenues. 
   Software amortization accounted for an increase of 2.7% in the cost of
   software license fees as a percentage of software license fee revenues for
   the first quarter of fiscal 1998 as compared to the first quarter of
   fiscal 1997.  Software amortization will increase in future fiscal periods
   based on the past increases of investment in capitalized product
   development. The cost of software license fees is also dependent on the
   level of third party costs associated with certain software revenues and
   includes such items as purchased licenses and other components.  The
   remaining increases in the cost of software license fees as a percentage
   of related revenue was due to these third party costs.


   Cost of Services 

   The cost of services as a percentage of related revenue decreased to 76.0%
   for the three months ended February 28, 1998,  as compared with 87.2% for
   the same quarter in the previous year.   The decrease was mainly  due to
   increased levels of billing generated by existing personnel.  The Company
   is restructuring  its service organization on an ongoing basis to match
   its costs more closely with its current revenue levels.  Accordingly, the
   Company is currently slowly reducing  personnel levels through normal
   attrition.  The Company is also refocusing its service staff  to reduce
   the level of internal non-billable projects and  increase the level of
   billable customer work. 


   Cost of Hardware

   The cost of hardware as a percentage of related revenue decreased to 78.4%
   in the first quarter of fiscal 1998  from 86.6% in the first quarter of
   fiscal 1997.  The cost of hardware as a percentage of related revenue
   varies with the size of the system, the margin mix of items comprising the
   system being sold, and the competitive pressure of the customer sale.  The
   cost of hardware as a percentage of related revenue also varies with the
   amount of low margin hardware sales to affiliates.  Hardware sales to
   affiliates declined in the first quarter of fiscal 1998  compared to the
   first quarter of fiscal 1997.


   Selling and Marketing Expenses

   Selling and marketing expenses increased $244,000, or 7.2%, from
   $3,381,000 in the first quarter of fiscal 1997 to $3,625,000 in the first
   quarter of fiscal 1998.  This growth in selling and marketing expense was
   mainly due to increased levels of performance compensation related to the
   corresponding growth in software revenues.   As a percentage of total
   revenues, selling and marketing expense was 35.4% in the first quarter of
   fiscal 1998 compared to 35.7% in the corresponding period of 1997.


   General and Administrative Expenses

   General and administrative expenses increased $129,000, or 12.1%, from
   $1,065,000 in the first quarter of fiscal 1997 to $1,194,000 in the first
   quarter of fiscal 1998.    The increase in general and administrative
   expenses was mainly due to rising expenses for professional and consulting
   fees ($79,000).  As a percentage of net revenues, general and
   administrative expenses were 11.7% and 11.2% in the first quarter of
   fiscal 1998 and 1997, respectively.  During the third quarter of fiscal
   1997, the Company discontinued the practice of  providing office space,
   accounting and administrative services, computer processing time, and
   other miscellaneous services to EMS Solutions, Inc., an affiliated entity. 
   EMS Solutions, Inc. now operates as a stand-alone entity with no material
   ongoing relationship with the Company. 


   Product Development Expense

   Product development expense increased 18.9% from $704,000 in the first
   quarter of fiscal 1997 to $837,000 in the first quarter of fiscal 1998. 
   This increase was primarily related to the incorporation of various new
   technologies into the Company's software products.  The Company
   capitalizes costs in accordance with Statement of Financial Accounting
   Standard (SFAS) No. 86.  The Company capitalized  $1,008,000 of product
   development costs in the first quarter of fiscal 1998 compared to $938,000
   in the first quarter of fiscal 1997.  As a percentage of software license
   fees,  the total amount invested in software development was 34.7% and
   39.0% in the first quarter of fiscal 1998 and fiscal 1997, respectively.  
   With the completion of two major development projects and with the
   Company's  plan to control its overall costs, the Company expects to
   reduce the level of investment in product development in the near future. 

   Other Income\Expense-Net

   Other income\expense-net was $62,000 of expense for the first quarter of
   fiscal 1997 compared to $143,000 of expense for the first quarter of
   fiscal 1998.   The increase in the level of expense was mainly the result
   of an increase in interest expense as a result of increased borrowings
   under the Company's borrowing facilities. 

   Income Tax

   A small income tax expense ($33,000 for state and local taxes) and no
   income tax benefit  was recorded for the first quarter of fiscal 1998
   compared to a benefit of 41.0% for the first quarter of fiscal 1997. At
   February 28, 1998,  the Company, for book purposes, is in a tax loss
   carryforward position.  Generally accepted accounting principles prohibit
   the Company from recording a tax benefit under the circumstances.   

   Liquidity and Capital Resources


   At February 28, 1998, the Company had cash and marketable securities
   aggregating $284,000.  During the first quarter  of fiscal 1998, the
   Company's operating activities provided $1,039,000 of cash compared to
   using  $679,000 of cash for the same period of the prior year.  This
   decrease in the use of cash was mainly attributable to the Company's
   reduced operating losses and increased non-cash software amortization.

   Investing activities used cash of $1,074,000 in the first quarter of
   fiscal 1998 compared to  $1,144,000 of cash in the first quarter of fiscal
   1997.  The principal use of the cash in the first  quarter of fiscal 1998 
   was $1,008,000 for capitalized product development.  The principal uses of
   cash in the first quarter of fiscal 1997 included $938,000 for capitalized
   product development and $454,000 for purchases of equipment and furniture.


   Financing activities provided $305,000 of cash in the first quarter of
   fiscal 1998 compared with $1,086,000 in the first quarter of fiscal 1997. 
   The cash provided in fiscal 1998 mainly reflected borrowings under the
   Company's borrowing facilities.  As of February 28, 1998,  the Company had
   $4,088,000 of availability under its $6,000,000 line of credit, which is
   based on the level of eligible accounts receivable. 

   On December 31, 1997, the Company entered into a loan and security
   agreement with Foothill Capital Corporation, that includes a revolving
   line of credit providing for maximum borrowings of $6,000,000 and a three-
   year term note for $3,112,000.  Borrowings under the agreement are secured
   by substantially all assets of the Company, with the revolving line of
   credit secured mainly by the Company's accounts receivable.  The new
   agreement contains certain restrictive covenants relating to income
   (EBITDA), tangible net worth, and level of capital expenditures.  In the
   first quarter of 1998, the Company required and obtained a waiver from the
   lender as a result of its failure to meet the tangible net worth and
   EBITDA covenants.   In order to meet covenants in the future, the Company
   will need positive operational results in the short term.  In the event
   that the Company's performance does not improve in the short term, the
   Company will need to secure additional waivers and/or alternative sources
   of financing. The Company is  reviewing both strategic alternatives and/or
   a business restructuring  to deal with its current financial status. 
   Although management believes that waivers and/or additional  financing can
   be obtained, if needed,  no assurance can be given that waivers or such
   additional  financing will be available to the Company on acceptable
   terms.  In the event that the Company is unable to secure additional
   financing, it would likely have a material adverse effect on the Company's
   liquidity, Including its ability to fund continuing operations at current
   levels.  


   Safe Harbor Statement Under the Private Securities Litigation Reform Act
   of 1995

   IN ADDITION TO HISTORICAL INFORMATION, THIS QUARTERLY REPORT ON FORM 10-Q
   CONTAINS "FORWARD-LOOKING STATEMENTS", INCLUDING INFORMATION REGARDING
   FUTURE ECONOMIC PERFORMANCE AND PLANS AND  OBJECTIVES OF MANAGEMENT, WHICH
   ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL
   RESULTS TO DIFFER MATERIALLY FROM THOSE REFLECTED IN THE FORWARD-LOOKING
   STATEMENTS.   SUCH UNCERTAINTIES, AND RISKS INCLUDE, BUT ARE NOT LIMITED
   TO, PRODUCT DEMAND AND MARKET ACCEPTANCE FOR THE COMPANY'S PRODUCTS; THE
   IMPACT OF COMPETITIVE PRODUCTS;  THE COMPANY'S ABILITY TO MAINTAIN
   EFFICIENT MARKETING AND DISTRIBUTION OPERATIONS WITH RESPECT TO NEW
   PRODUCTS; FUTURE ECONOMIC, COMPETITIVE AND MARKET CONDITIONS; THE
   COMPANY'S ABILITY TO RETAIN KEY TECHNICAL AND MANAGEMENT PERSONNEL;  THE
   COMPANY'S SUCCESS IN IMPROVING ITS FINANCIAL PERFORMANCE; TIMING OF
   PRODUCT DEVELOPMENT; PRODUCT PRICING AND OTHER FACTORS DETAILED IN THIS
   QUARTERLY REPORT ON FORM 10-Q AND IN OTHER FILINGS MADE BY THE COMPANY
   WITH THE SECURITIES AND EXCHANGE COMMISSION.


   Item  3.  Quantitative and  Qualitative Disclosure About Market Risk  

                   Not Applicable


   <PAGE>

   Part II - Other Information


   Item 6.   Exhibits and Reports on Form 8-K

             (a) Exhibits

             4.1   Loan and Security Agreement by and between Foothill
                   Capital Corporation and Effective Management Systems, Inc.,
                   EMS-East, Inc. and Effective Management Systems of Illinois,
                   Inc., dated December 31, 1997.  [Incorporated by reference 
                   to Exhibit 4.14 to Effective Management Systems, Inc.'s 
                   Form 10-K for the year ended November 30, 1997]

            10.1   Relationship Agreement by and between CIMX, an Ohio
                   Limited Liability Company, and Effective Management 
                   Systems, Inc., dated December 31, 1997 [Incorporated by
                   reference to Exhibit 10.20 to Effective Management Systems,
                   Inc.'s Form 10-K for the year ended November 30, 1997]

             27    Financial Data Schedule [EDGAR version only]


             (b) Reports on Form 8-K

             None




   <PAGE>


                                   SIGNATURES


   Pursuant to the requirements of the Securities Exchange Act of 1934, the
   Registrant has duly caused this report to be signed on its behalf by the
   undersigned thereunto duly authorized.


                                           EFFECTIVE MANAGEMENT SYSTEMS, INC.



   April 14, 1998                          By:  /s/ MICHAEL D. DUNHAM
                                                Michael D. Dunham
                                                President (principal
                                                executive officer)



                                           By:  /s/JEFFREY J. FOSSUM
                                                Jeffrey J. Fossum
                                                Chief Financial Officer and
                                                Assistant Treasurer
                                                (principal financial and
                                                accounting officer)


   <PAGE>


                                  Exhibit Index


   Exhibit 
   Number


   4.1  Loan and Security Agreement by and between Foothill Capital
        Corporation and Effective Management Systems, Inc., EMS-East, Inc.
        and Effective Management Systems of Illinois, Inc., dated December
        31, 1997.  [Incorporated by reference to Exhibit 4.14 to  Effective
        Management Systems, Inc.'s Form 10-K for the year ended November 30,
        1997]

   10.1 Relationship Agreement by and between CIMX, an Ohio Limited
        Liability Company, and Effective Management Systems, Inc., dated
        December 31, 1997 [Incorporated by reference to Exhibit 10.20 to
        Effective Management Systems, Inc.'s Form 10-K for the year ended
        November 30, 1997]

   27   Financial Data Schedule [EDGAR version only]