Organizations present system features to varying degrees, producing variable levels of effectiveness. “Quasi‐systems” are ineffective and “ritualistic,” oriented to compliance with standards rather than exchange with the environment. Minimally effective “pseudo‐systems” include (a) self‐involved, “incestuous” processes representing interaction confined largely to participants, due to limited energic input; and (b) self‐justifying, “cannibalistic” processes representing interaction with a subset of the environment restricted to a degree that participants fail to recognize, due to limited information input. Only systems effectively interact with their environment, recommending system development, methods for and implications of which are presented in the conclusion of the discussion. Copyright © 1991 John Wiley & Sons, Ltd.