Evaporating Cloud
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The Evaporating Cloud is a TOC conflict resolution tool that surfaces hidden assumptions to find solutions where both sides win.
Definition
The Evaporating Cloud (also called Conflict Resolution Diagram) is a TOC tool for resolving conflicts by surfacing and challenging underlying assumptions. It maps a conflict's structure: a common objective, two necessary conditions (both required), and two opposing actions (the conflict). Arrows connecting elements represent assumptions—beliefs about why each requirement and action is necessary. By identifying and invalidating assumptions, the cloud "evaporates" and solutions emerge that satisfy both sides without compromise.
Examples
Conflict: Production wanted large batches for efficiency; Sales wanted small batches for flexibility. The cloud revealed assumptions: "large batches reduce setup cost per unit" and "we can't reduce setup time." SMED invalidated the second assumption—small batches became efficient, satisfying both sides.
Key Points
- Maps conflict structure: objective, requirements, opposing actions
- Arrows represent assumptions about necessity
- Resolution comes from invalidating assumptions, not compromise
- Produces win-win solutions rather than trade-offs
Common Misconceptions
Evaporating Clouds are for interpersonal conflicts. While useful for people conflicts, the tool applies to any situation with competing requirements—technical trade-offs, resource allocation, strategic choices. The logic structure reveals hidden assumptions in any conflict.
Resolution requires invalidating the most obvious assumption. Any assumption in the cloud can be challenged. Often the breakthrough comes from questioning assumptions so deeply held they weren't initially visible—"of course we need to..." statements.