Strategy Is Based on Models

#proposition #stub2 mentions

Every Strategy is based on an (implicit or explicit) assessment of the situation, that is the Model a System has of its Environment.

The diagnosis for the situation should replace the overwhelming complexity of reality with a simpler story, a story that calls attention to its crucial aspects. This simplified model of reality allows one to make sense of the situation and engage in further problem solving.Rumelt (2011)

Agents use Explicit Models to shape either patterns of action directly or the conditions of their emergence. Thus they influence the wider system’s Implicit Model, which is the actual basis of its strategy.