Evaporating Cloud Diagram

Last Updated: September 2026

Evaporating Cloud Diagrams (also called Conflict Resolution Diagrams) are a tool from Eli Goldratt for resolving conflict. It is a tool to help a group of people who are otherwise working towards a common goal work through a disagreement.

Concept Many conflicts come from:

  • Opposite Conditions that are mutually exclusive
  • Different alternatives that preclude one another
  • False assumptions or beliefs

When two groups or people are on opposite sides of a conflict the diagram helps visualize the difference and externalize it. Instead of debating a big idea, the issue is boiled down to conflicting assumptions.

An example: Sales wants to discount aggressively (assumption #1) to close deals for quarter end to hit revenue targets. Finance wants to hold prices firm (assumption #2) to protect margins, both serving the common goal of “company growth.”

Evaporating cloud diagram: Discount Aggressively leads to Hit Revenue Targets, and Hold Prices Firm leads to Protect Margins; both needs lead to the shared goal of Company Growth, with the two conflicting actions highlighted in redEvaporating cloud diagram: Discount Aggressively leads to Hit Revenue Targets, and Hold Prices Firm leads to Protect Margins; both needs lead to the shared goal of Company Growth, with the two conflicting actions highlighted in red

One possible solution: offer discounts only in exchange for longer contract terms or upfront payment, so revenue and margin both improve instead of trading off.

The approach can be applied whenever a group is stuck between two things they value that seem to be in conflict. For example, I value autonomy and collaboration and I want to make sense of how to get both. (Thanks to Richard Lawrence for the example.)

Resource Links

Decision Making Tools
Systems Thinking
Theory of Constraints

Get Certified

Explore what Scrum is and how to make it work for you in our Scrum Certification training. Hands-on learning will guide you to improve teamwork, deliver quick feedback, and achieve better products and results.

Registration is now open for workshops:

October 1-2, 2026

Live Online

9:00 AM - 5:00 PM EDT

About this course

Focuses on the role of the team and the ScrumMaster. Get the skills and practical experience necessary to improve teamwork, take the exam, and advance your career with a certification that is in high demand today. Often the best fit for anyone new to Scrum.

Learning and Benefits

Relatable Scenarios

Learn on-the-job applications of key Scrum concepts, skills, principles, along with practical solutions that you can apply the next day for difficult, real-life situations.

Respected Certification

Everything you need to earn your Scrum Alliance® ScrumMaster certification, including exam fee and membership, and so much more.

Practical Exercises

With focus on the challenges that real teams face, and tools to dig deeper. You don’t need more boring Scrum theory. You need something you can sink your teeth into to see immediate results.

Jargon-Free Learning

This workshop is not just for software development or people with a computer science degree. We’ve helped many non-software teams with Scrum.

Career Advancement

Use Scrum knowledge to standout at work, get paid more, and impress your customer, all without burning out.

GenAI for Systems Thinking

Learn the basics of using Generative AI as a tool to support Systems Thinking in your ScrumMaster role. Explore how to leverage GenAI to help uncover patterns, and think more deeply about the systems your team operates in.

Ongoing Support

Your learning doesn’t stop when the workshop ends. You get lifetime access to all course materials, plus a followup email series designed to reinforce your learning objectives and help you apply what you’ve learned on the job.