Although educational reformers frequently use the words "system,""systemic change," and "systemic approach," many lack a fundamental understanding of the systems concept. This paper describes the application of systems theory to the problems of educational reform and educational assessment. It introduces basic concepts and principles and describes a generic model for the application of systems theory to educational reform. Educational reformers should view systems as complex, pluralistic, open, and teleologic. The model must have the following features: (1) an open view of education; (2) recognition of the system's vision, mission, and goals; (3) alignment of the vision, mission, and goals of individuals with those of the system; (4) well-defined methods for promoting communication across barriers and breaking down existing communication barriers; (5) feedback mechanisms to maintain dynamic homeostasis; and (6) action-producing mechanisms to analyze environmental feedback and design the most effective action. Six figures are included. (LMI)