Unlike typical operating systems such as Windows or Mac OS, with Lisa Office System tools, you don't get to run the actual program. If you do, you'll get a window that says "This tool is used to create and edit documents. To use the tool, tear off a sheet of stationary and open it."
You should locate the stationary icon for the type of document you wish to create, and double click on it. The stationary icon will look like a document of that particular type, but instead of being a single sheet, it will look like a stack.
Double clicking on the stationary will create a blank file named, for example, LisaWrite Paper 12/31. You can then click on the name of the file and rename it, then double click on it to open it.
Creating folders works exactly in the same way. Find the Empty Folders stationary icon, and double click on it. This will pull off a new folder. You can then rename it and move files to it.
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