In recent years, school management systems have become an important tool for effective e‐leadership and data‐based decision making. School management systems emphasize information flow and e‐communication between teachers, students and parents. This study examines e‐leadership by secondary‐school principals through the Mashov school management system, implemented in 500 Israeli schools in order to increase school effectiveness. Semistructured interviews were conducted at the end of academic year 2010/2011 with 10 participants: eight secondary‐school principals, a Ministry of Education supervisor, and a director of the school principals' training program. The results indicate that the system provides extensive support for school principals in managing the organization, delegating responsibilities and promoting e‐leadership by teaching staff and, consequently, increases the pedagogical effectiveness of their school. e‐Leadership through the school management system changes the entire school culture. It includes making data‐based decisions; monitoring curriculum implementation and learning performance; interacting with teachers, students and parents; improving the school climate; and raising the level of student and parental involvement. The results are discussed in terms of the islands‐of‐innovation and comprehensive‐innovation models of technology implementation. In order to enhance e‐leadership, we recommend that school principals expand the implementation of school management systems among students and parents, delegate e‐leadership responsibilities and monitor the level of teacher activity within the system.