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Alternatively, do some organizations on the institutional sphere have an influence
on many components within the physical domain?
Finally, within the institutional sphere itself (Class 3 links), are the relationships
between organizations characterized by conflict or cooperation? Are there any high-
influence interactions, or particularly strong organizations, that have direct impacts
on many other organizations within the institutional sphere? What is the hierarchi-
cal structure of the institutional sphere, and are there strong command and control
relations among the organizations, and/or are they more loosely coupled? What is
the nature of interaction between several organizations that all influence the same
subsystems within the physical domain?
2.2.3.5.2 CLIOS Stage 2: Design, Evaluation, and Selection
Having considered the CLIOS system from the standpoint of its structure and behav-
ior during the Representation stage, the next stage focuses on the design, evaluation,
and selection of strategic alternatives for the system. his culminates in the develop-
ment of a robust bundle of strategic alternatives. Among these strategic alternatives
may be organizational and institutional changes that may be necessary to meet the
CLIOS system goals (defined in Step 1, and to be reconsidered in Step 6).
2.2.3.5.2.1  CLIOS  Step  6:  Refine  CLIOS  System  Goals  and  Identify 
Performance  Measures  — Entering the second stage of the CLIOS process,
it is necessary to refine the preliminary goals developed in Step 1 to reflect the
knowledge and insight gained at this point in the process. he concrete vision of
the desired futurestate of the system, as prescribed by the reinedgoals , can then be
used to identify performancemeasures that mark the progress from the current to
the desired future state.
2.2.3.5.2.2  CLIOS  Step 7: Identify  and  Design  Strategic  Alternatives  for 
CLIOS System Improvement — he establishment of reined goals and perfor-
mance measures naturally leads to questions about how CLIOS system performance
can be improved through strategic alternatives. his is a creative step in the CLIOS
process where imagination in developing strategic alternatives is to be valued, and
out-of-the-box thinking and brainstorming is often a key to success. Performance
improvements through strategic alternatives can take three forms. hinking about
nested complexity, we can characterize strategic alternatives as
Physical changes involving direct modification of components in the physical
domain
Policy-driven changes involving the policy lever projections from the institu-
tional sphere on the physical domain
Actor-based—architectural changes of the institutional sphere either within
actors or between actors
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