This paper describes a conceptual application of living systems theory (LST) for solving problems in information processing subsystems at the organization level. A questionnaire based entirely on LST concepts is developed as a diagnostic template for analyzing organizations, and the (four‐stage) method of applying it to information processing problems (using an actual multinational corporation) is also described. The questionnaire has the advantages of being readily comprehensible and functionally employable by busy managers, executives, and analysts as a user‐friendly device for identifying, defining, and solving problems of information processing in organizations. Copyright © 1991 John Wiley & Sons, Ltd.