I use traffic light style dashboard as part of my project status reporting. Traffic lights are easy to understand – RED means substantial corrective action is required, AMBER means some corrective action is required and GREEN means that things are under control.
The number of gauges on my traffic light report will vary from project to project but, in the main, it will include indicators suggesting the ‘health’ of parameters like ‘Financial’, ‘Schedule’, Technical Performance’, ‘Risks and Issues’ and ‘Resources’. I also give an overall project status and this, too, can be shown as RED, AMBER or GREEN.
Stakeholders, naturally, don’t like anything RED. One of the questions that I am often asked is something like the following: “Why is it that just because only one of the individual health indicators is RED you report the overall status as RED?
The answer is simple:
All these health indicators represent links in the project chain. The strength of the chain is determined by its weakest link. As a RED health indicator represent the weakest link, that link could place the complete chain in jeopardy – hence if one link is RED the whole chain is RED.
Think about it!
Hi Shim, interesting post.
In the world of risk management, I like to think of RED (Extreme/Very Hgh etc) as a positive/good indicator. As these are potentially your next issue. As long as the treatment plans, controls are green (ie someone is doing something positive and actionable) than a red risk should be seen as good? I dont know how many times I am aksed….how do we make the red risk into green, just revise the redisual risk and make it green…ahhh! I call these watermelon risks (green on the outside, red inside).
Appreciate your thoughts, always enjoy reading your posts.
Stephen
Stephen Duffield recently posted..Calling on Project Managers to Share Success Stories
Hi Stephen, thanks for your kind words.
I found your observation intriguing. You look at a RED indicator as a positive indicator as it identifies a problem and it is this identification and calling-out that you see as a positive outcome. Interesting thought. The point I was attempting to address was more generic than just reflecting on risks and issues but other indicators like cost, schedule, technical performance, etc. While in the context of risk a red indicator could be seen as an indication that proper risk management has actually taken place, when it comes to the other indicators it is difficult to put a positive spin on RED as it would usually mean that we’re either behind schedule, over budget, etc.
Watermelon risks? Fantastic – Love it!
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