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!