Content area
Full text
EXECUTIVE SUMMARY
A current reality tree is a key technique in the theory of constraints' logical thinking process. Starting with the most significant problems that exist in an organization, a current reality tree can be utilized to uncover the key cause-and-effect relationships and clearly identify the underlying critical root causes creating the problems. Only then can managers begin to develop and implement the solutions necessary to address the organization's true problems.
Albert Einstein once said that "Education is not the learning of facts, but the training of the mind to think." But how can we train the mind to think? Perhaps the most powerful technique to achieve this end is the current reality tree (CRT). This technique can discover the dynamic cause-and-effect relationships that exist in any system and identify the root causes of the most significant problems.
To illustrate the CRT technique, consider the following conversation between two old friends, James (a retired executive) and Mac (the plant manager of a barely profitable facility).
"Mac, you can't just start making changes in your plant before you thoroughly understand your problem," James began to explain.
"Problem? I have lots of problems." Mac chuckled glumly. "For example, our manufacturing efficiencies are lousy and our sales force couldn't convince water to run downhill."
"But Mac, don't you see that you are only describing symptoms of deeper underlying causes. Look, when you are sick and visit your doctor, tell me what he asks and why?"
Mac thought for a moment. "First he will ask what symptoms I'm having. And I suppose he relies on his training and experience, and maybe some follow-up tests, to determine the underlying cause of my symptoms."
"Exactly. And that is what we must do in our own companies. Starting with our problems or symptoms, we must use our training, experience and intuition to identify the underlying causes of our problems."
"That's all good and well," replied Mac. "But my company has so many problems it could take me forever to track down the underlying causes. Actually James, I was really hoping that you could give me a hint as to what to look for and ..."
"Sorry Mac, it doesn't work that way," James said. "I don't know enough about your business...