Evaporating Cloud

The Evaporating Cloud is one of the six Thinking Processes in the Theory of Constraints initially developed by Eliyahu M. Goldratt to enable the focused improvement of any system (especially business system). The Evaporating Cloud is also referred to in the literature as The Conflict Resolution Diagram.

The Evaporating Cloud is suited to finding a solution to conflict between two parties or two points of view. The method requires the participants to find 'win-win' solutions because it emphasizes that both parties are trying to reach the same ultimate goal.

This understanding of conflict can be diagrammed as follows:

Where A is the Objective, B and C are Requirements, and the D nodes are Prerequisites that are in conflict. The lines or arrows connecting the nodes represent the rationale or causal assumptions that are used to link the nodes.

When writing the cloud, the arrows should be read as “in order to” or “because” or “so that”. For example: “In order to achieve A we require B because there is no way we can have A without B.” Or: “There is no way we can have D and Not have D at the same time.”

Steps in problem solving:

1. Decide that you really must solve the problem.
2. Draw the cloud and define clearly the conflict, the common goal, and the intermediate assertions.
   • What does each party want? This will be boxes D and NOT D. Clearly identify why they can’t both be met.
   • Identify the underlying requirements--the reason why each party needs what they want. These are boxes B and C.
   • What is the common goal that ties B and C together? This can be difficult to determine, but unless there is a common goal there would be no conflict! Maybe it’s as simple as “we both keep our jobs”; but there has to be something.
3. Obtain agreement that the definition is correct.
4. Look “under the arrows” and review the causal assumptions.
5. Challenge each of the causal assumptions.