Page 27 - The Complexity Perspective 20 02 18

The Idea of Context

What is Context?

Context, as discussed in this Guide, is the unbounded environment in
which a bounded system such as a firm is embedded.

Typically, the term context is not discussed in complexity theory. Most
complexity theory considers what we call the context of an open
system. We don't largely because it does not share key
characteristics of a bounded system. For example, it is not goal-

directed and it does not process inputs to create an output.

The context is composed of individual actors and bounded systems
actors. We believe that by sharply differentiating systems and context,

we can remove some clutter from the often confusing complexity
literature.

Context States

There are four or possibly five states within which business leaders
operate.

● Simple

● Complicated

● Complex

● Chaotic

● Disordered

Simple

Typically, a stable context where cause and effect relationships are
obvious. 'Correct' answers are often self-evident. Leaders can sense the

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