Five basic assumptions underlie the effective application of the systems approach to educational management: (1) the purpose of an educational system; (2) the need for improvement in the educational programs of the 50 States; (3) the complexity of local and State educational programs; (4) the present nonsystematic management of most State, regional, and local educational programs; and (5) recognition of the need to invest in educational system analysis. Following a short-term systems approach, existing educational management systems may be improved by a series of 11 specified steps. For the long-term application of the systems approach to the management of national, State, and local educational systems, more comprehensive planning is required. Information being developed by Project CAPE, an extensive national survey assessing educational progress, could serve as the background for a national educational system analysis, followed by systems applications that would be regional in scope. A seven-phase system model for program development is outlined. (JK)