This study reviews the literature regarding the theoretical rationale for creating a computer-based school system simulation for educational leaders' use in problem solving and decision making. Like all social systems, educational systems are so complex that individuals are hard-pressed to consider all interrelated parts as a totality. A potentially powerful tool for understanding system totality is computer simulation, which combines theory, experiment, chaos, and compressed time and space in a microenvironment. Schools face many invisible, seemingly insoluble problems that are best viewed from a systems perspective. Using school simulation, educators can ask "what if" questions without getting into hot water politically, or creating nonintuitive outcomes. Researchers can test and analyze data and pre-pilot projects before spending time and money on research projects. Leadership training programs can use simulations to provide problem-based learning or hands-on experiences for future administrators. School systems simulation promises to help school leaders clarify complex problems, develop a common language for discussing possible solutions, show complex interrelationships among problems, pretest solutions, and develop successful reflexive and reflective types of behaviors. High-fidelity, computer-based simulations can be used in several skill areas to give administrators the ability to perform experiments on school system models. (Contains 17 references.) (MLH)