Formulate an Obstacle by completing the following phrase: “We cannot move closer to the target condition because…” - Obstacles should be *specific, measurable* hindrances on your path to the [Target Condition](Target%20Conditions.md). - They are not formulated in the negative or camouflaging a solution by describing a lack, such as the “lack of a standard”. - An obstacle can describe the lack of knowledge - ”We don’t know enough about process X [to achieve a 20% time reduction {as per the Target Condition}]” is a very acceptable obstacle. - Under no circumstance are obstacles action items or tasks. ## Picking the next Obstacle Picking the next obstacle to work on is a balancing act between expected cost and potential upside. Prefer smaller obstacles that you believe have among the shortest experiments: - The faster you can iterate, the more agile you are, and the faster you will learn. - Smaller obstacles will have less unwanted side-effects, cause less harm, and produce less waste. - You might find shortcuts around larger obstacles by solving smaller obstacles first. A typical pitfall is picking a larger obstacle because it might "prove" the Challenge or Target Condition "cannot" be met. Remind yourself that you are using the Toyota Kata to figure out a path to the Challenge! ## Obstacle Parking Lot and Holding Area The Obstacle Parking Lot is the place to record all perceived and discovered obstacles, each of which may or may not need to be addressed to reach the Target Condition. It will help you learn how few obstacles actually need to be resolved to reach a target condition. The Parking Lot should only contain Obstacles that hinder you from reaching the Target Condition. Therefore, beyond the Parking Lot, you might want to have a separate Obstacle Holding Area. In that area you record and store obstacles you identify as important, but that are not hindering you from reaching the Next Target Condition.