"VGL Guide — Example 17: Goal Tree (GoalTree)"
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Example 17: Goal Tree (GoalTree)
A strategic planning graph using Theory of Constraints necessity logic. The Goal Tree defines what an organization must achieve through a hierarchy of a single Goal, Critical Success Factors (CSFs), and Necessary Conditions (NCs). Based on H. William Dettmer's Logical Thinking Process:
vgraph companyStrategy: GoalTree "Increase Profitability" {
// The single system goal
node goal: Goal "Make more money, now and in the future";
// Critical Success Factors (3-5 high-level terminal outcomes)
node csf1: CriticalSuccessFactor "Maximize Throughput";
node csf2: CriticalSuccessFactor "Control Operating Expense";
node csf3: CriticalSuccessFactor "Minimize Inventory and Investment";
// Necessary Conditions supporting CSF1
node nc1: NecessaryCondition "Maximize sales volume";
node nc2: NecessaryCondition "Minimize variable costs";
node nc3: NecessaryCondition "Highly appealing products";
// Necessary Conditions supporting CSF2
node nc4: NecessaryCondition "Minimize scrap and rework";
node nc5: NecessaryCondition "Optimize overhead";
// Necessary Conditions supporting CSF3
node nc6: NecessaryCondition "Optimize outgoing supply chain";
node nc7: NecessaryCondition "Optimize incoming supply chain";
// Sub-NCs becoming more specific
node nc8: NecessaryCondition "Effective market research";
node nc9: NecessaryCondition "High-quality products";
// CSFs support the Goal (necessity logic: "In order to achieve Goal, we must achieve CSFs")
edge csf1 -> goal: csf_to_goal;
edge csf2 -> goal: csf_to_goal;
edge csf3 -> goal: csf_to_goal;
// NCs support CSFs
edge nc1 -> csf1: nc_to_csf;
edge nc2 -> csf1: nc_to_csf;
edge nc3 -> csf1: nc_to_csf;
edge nc4 -> csf2: nc_to_csf;
edge nc5 -> csf2: nc_to_csf;
edge nc6 -> csf3: nc_to_csf;
edge nc7 -> csf3: nc_to_csf;
// Sub-NCs support higher NCs
edge nc8 -> nc1: nc_to_nc;
edge nc9 -> nc3: nc_to_nc;
}
Note: GoalTree graphs flow top-to-bottom with the single Goal at the top, Critical Success Factors directly below it, and Necessary Conditions expanding downward. NCs become progressively more detailed, specific, and functional at lower levels. The vertical placement implies nothing about importance — due to necessity logic, the lowest NC is equally important as a CSF because if you fail to accomplish it, nothing above it will happen. There are usually no more than 3-5 CSFs, and NCs can have lateral cross-connections between branches.
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