In project management, the RAG status shines as a beacon of clarity. Red, Amber, and Green – a trio designed to quickly indicate project health and direction. It’s a simple classic – the Little Black Dress (LBD) of the project world.
However, like many tools meant for simplification, it often falls short. The culprit? Human nature.
The Complexity Conundrum
What could be clearer than a single RAG status for a project?
Unfortunately some over complicate it. I’ve seen individual RAGs implemented for scope, timeline, resources, budget, risk, workstreams, sub-tasks and teams. While theoretically sound, in practice, it’s an administrative burden and will offer little insight.
Another pitfall is the politicisation of statuses. They can become tools for point-scoring among stakeholders, or for settling old scores.
The Colour Dilemma
A sea of Green can be reassuring or raise eyebrows. Continuous smooth sailing on a project is rare – even I’d view an all-green dashboard with skepticism.
Labelling a task or project as Green, despite looming risks, jeopardises your credibility. This practice though is common-place in organisations where giving bad news is feared. It can also happen if the information you are relying on is not solid. And if you don’t have the trust of the team below you to give you an honest assessment of how things are going.
Red will almost always invite unwarranted pushback. Particularly from those who perceive it as a slight against their efforts or those of their teams. Queries like, ‘Isn’t it more of an amber-y red?’ are real red flags.
Amidst this, Amber, might seem the safe middle ground. If offers wiggle room about future outcomes. But over-reliance on Amber nullifies the whole system’s value.
The Way Forward
Keep it simple. Here’s my approach when communicating to senior stakeholders and steering groups:
- Green: On Track. No concerns.
- Amber: There are some risks or issues, but under control. We can discuss details if needed.
- Red: Action required. We need to discuss the issue, the potential impacts, and our options.
As a side note: Always pair risks or issues with potential solutions. Be prepared to recommend a course of action.
Consistency is Key. Ensure stakeholders can trust your approach by maintaining consistency. The rules of engagement should remain unchanged.
Know Your Audience. The issues that matter to a Development Manager might be just noise to a CEO. Exercise discernment, ensuring your RAG system is tailored to your primary audience from the start.
Remember, stakeholders expect challenges to arise. Their trust in you doesn’t stem from an absence of challenges but from your ability identifying, communicating, and tackling them.
While not everyone may agree with your status assessment, and you might even be overruled, always evaluate and set statuses based on your honest assessment.