Chapter 4: Effective Context Engineering with General Agents
You've learned how to use Claude Code and Cowork. You know the tools—CLAUDE.md, Skills, Subagents, Hooks, MCP. Now comes a harder question: Why do some agents work brilliantly while others fail?
Two engineers build contract review agents. Same model. Same basic architecture. One sells for $2,000/month. The other can't give it away. What's different?
The answer: context quality.
This chapter introduces Context Engineering—the quality control discipline for Digital FTE manufacturing. Just as Toyota has systematic practices ensuring every car meets specification, context engineering ensures your Digital FTEs deliver consistent, sellable value.
📚 Teaching Aid
What You'll Learn
See the lesson breakdown below for the complete learning path through context engineering fundamentals.
Chapter Structure
| Lesson | Title | What You'll Learn |
|---|---|---|
| 1 | What Is Context Engineering? | Definition, context rot types, why context beats prompts |
| 2 | Signal vs Noise | The 4-question audit, Three-Zone Strategy for CLAUDE.md |
| 3 | Context Architecture | When to use CLAUDE.md vs Skills vs Subagents vs Hooks |
| 4 | The Tasks System | Persistent state that enables aggressive context management |
| 5 | Tacit Knowledge | Getting domain expertise out of your head and into files |
| 6 | Context Lifecycle | When to /clear vs /compact, the Zone System |
| 7 | Progress Files | Session architecture for multi-day projects |
| 8 | Memory Injection | PreToolUse hooks for long workflows |
| 9 | Context Isolation | Why subagents use clean slates and how to coordinate them |
| 10 | The Playbook | Decision frameworks for production-quality agents |
Remember the thesis: General Agents BUILD Custom Agents. Context engineering is HOW you ensure those Custom Agents are worth buying.