It is postulated in this research that the paradox of “advances in technology and management not keeping pace with the ever-increasing urban problems” is due to the poor understanding of person-focused governance of societal, environmental and economic entities. Therefore, the objective of this paper is to present an adaptive institutional model of person-driven effectiveness and ineffectiveness. The model proposes that human, ecologic and economic outcomes are heavily influenced by a complex system of systems, spanning from individually unique “non-physical influencers” to a broader set of social and environmental influencers that have a common impact on the larger society-environment-economy (SEE) system. At the heart of the model is an analytic formulation that explains the phenomena of non-physical blocker, enhancer and indifferent that are responsible for the adaptation and maladaptation of social agents, and accordingly for the sustainability and unsustainability of SEE systems. Examples are provided to illustrate the model applications: (a) the non-physical and maladaptive syndromes as antecedents of multi-morbidity and (b) the broadened and narrowed minds as sources of sustainability and unsustainability at the SEE system level within the context of emerging technologies such as engineered nanomaterials.