equilibrium

A condition in which all acting influences are canceled by others, resulting in a stable, balanced, or unchanging system -- equilibrium. Dictionary.com. The American Heritage® Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. http://dictionary.reference.com/browse/equilibrium (accessed: January 01, 2008).

Equilibrium is the assumed natural state of thing in classical and neoclassical economics. Observed changes or disruptions are viewed as anomalies to be resolved as the system returns to equilibrium. This is in contrast to complexity and evolutionary economics, which assumes that change is the normal state of things.

Implications of a stability vs. change mindset -- The implications of these two starting points on the methods employed and the psyche of business leaders is profound. In one case, the business leader constantly seeks stability, defends stability to sustain or increase advantage, and deals with disruptions to stability as an anomaly to be overcome. In the other case, the business leader expects continual change, prepares to be adaptive to external change, and seeks to drive internal change to increase advantage.