Operative Context
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Operative context refers to the prevailing business environment.
Simple decisions, well thought out decisions and strategic directions
will have different results and impact in different business
environments. There are four major governing contexts in business
environments. They are: the simple environment, the complicated
environment, the complex environment and the chaotic environment.
The simple environment has repeating patterns and consistent
events. There are clear cause and effect relationships. Right
answers exist. There are "known knowns". Leaders rely on
fact-based management. Businesses operating in this environment
generally do not hire consultants.
The complicated environment requires expert diagnosis of
problems. The problem diagnoses are typically facilitated by
traditional consultants. Cause and effect relationships are
discoverable but not immediately apparent to everyone. This is
referred to as "known unknowns" There is more than one right
answer.. Leaders rely on fact-based management.
The complex environment lives with flux and unpredictability.
There are no right answers. Instead, there are emergent patterns
that become instructive. There are "unknown unknowns". There are
many competing ideas. Consultants are retained to respond to
internal problems. However, the traditional consultant will rely on
fact-based models which are grounded in Newtonian science. The
complex environment, however, requires the development of
creative and innovative approaches based on emergence of
patterns and systems principles. Pattern-based approaches are
entirely different from fact-based traditional management.
The chaotic environment is characterized by high turbulence and
high tension. There are no clear cause and effect relationship, so
there are no right answers. The "unknowns are unknowable". Many
decisions need to be made without proper time to analyze.
Pattern-based approaches are required.
Simple decisions, well thought out decisions and strategic directions
will have different results and impact in different business
environments. There are four major governing contexts in business
environments. They are: the simple environment, the complicated
environment, the complex environment and the chaotic environment.
The simple environment has repeating patterns and consistent
events. There are clear cause and effect relationships. Right
answers exist. There are "known knowns". Leaders rely on
fact-based management. Businesses operating in this environment
generally do not hire consultants.
The complicated environment requires expert diagnosis of
problems. The problem diagnoses are typically facilitated by
traditional consultants. Cause and effect relationships are
discoverable but not immediately apparent to everyone. This is
referred to as "known unknowns" There is more than one right
answer.. Leaders rely on fact-based management.
The complex environment lives with flux and unpredictability.
There are no right answers. Instead, there are emergent patterns
that become instructive. There are "unknown unknowns". There are
many competing ideas. Consultants are retained to respond to
internal problems. However, the traditional consultant will rely on
fact-based models which are grounded in Newtonian science. The
complex environment, however, requires the development of
creative and innovative approaches based on emergence of
patterns and systems principles. Pattern-based approaches are
entirely different from fact-based traditional management.
The chaotic environment is characterized by high turbulence and
high tension. There are no clear cause and effect relationship, so
there are no right answers. The "unknowns are unknowable". Many
decisions need to be made without proper time to analyze.
Pattern-based approaches are required.
Lessard and Associates, LLC
Risk Management and
Communication Solutions
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