What to change in the system

• Understand organization current reality, its goal, and the magnitude and direction of the difference between the two.
• Most undesirable effects (UDEs) are caused by few core problems.
• UDEs are linked by a network of cause-and-effect
• Identify Root Causes (core problem).
• Core problem causes 70% or more of Undersirable Effects on the system (UDEs).
• Identify their relationship to one another.
• TOC Tool: Current Reality Tree (CRT).

Example of a Current Reality Tree (CRT) -- US Firms (6)

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