What is RAG Status? RAG is an acronym that stands for Red, Amber, and Green. RAG status comes into the picture when you track the status of the business project. One of the most common and simple mechanisms to report performance and status projects is using RAG indicators. Red – Houston, we have a problem! There is a concerning situation that demands immediate attention. Amber – It could have been better but let me do some project management, and we’ll get back on track soon. Green – So far, so good, nothing to worry about, we plan to deliver against what was agreed. Download This Template Now! RAG Project Status Let’s be honest: most project managers dislike project status reports. However, that does not mean that they are not important. In fact, how would senior management know what is going on or if the organization's budget is effectively applied without a mechanism of reporting? While I’m a believer in simplicity, by using a single indicator to reflect the status of your project, you may be preventing senior management from focusing on the areas that need tender loving care. There may be important details to your project story! Some organizations prefer to decompose their project updates by applying the RAG status to the key dimensions of the project, such as scope, time, cost, or resources. But what do we mean if a project has a red status for resources, for instance? It’s important that the same meaning is shared, and that is an objective view rather than simply an opinion; thus, today, I bring you some examples. Behold, we have a RAG Status Definition Matrix! Additionally, to get a sense of direction over time, you may want to include a section for “Trend,” as depicted below: Additional RAG status How to use RAG Status Reporting Define your Status Report template: RAG status is usually captured as part of a Status Report template, including a list of key active risks and issues or what has been accomplished in the period and is planned for the next. Regardless of what you decide to put in the template, how you want to call it (“project-on-a-page” or “performance update” are nice variations to the feared “status report”), or how you want to get the update (Excel, whiteboard, showcase), this needs to be the same for everyone using it, that is, consistent. Define meanings and expected action: There are little things more frustrating in the project management universe than having to do something just for the sake of following a process. If your project board doesn’t know what is expected of them or simply does not bother that much with RAG status, there is less incentive for Project Managers to do it. It is thus important that everyone is aware of the RAG meanings and associated actions. If I’m a project manager reporting an overall red status for my project, I’ll expect people to pay attention and even deploy some help (if I’m lucky). Beware of Watermelon projects: Sometimes project managers believe that a red RAG will reflect on their level of competence; hence, they are afraid to report the real status of the project, often leading to the ‘watermelon’ phenomenon: projects that look green on the outside but, at a closer look, are red in the inside. Thus, senior management should create a climate of trust that enable project managers to share their story. As important as managing projects are managing for projects. Focus on creating a forum for brainstorming, not blame storming! Define a reporting cycle: Keyword again: consistency! Individually, agree to the frequency of reporting with your Project Managers and their project boards. It may be useful to define shorter reporting cycles for projects that are a priority or for which there are tight deadlines and longer reporting cycles for projects with a wider time frame. However, for portfolio-level reporting, all reports must be gathered simultaneously (last Friday of the month always sounds nice to me) so that you can see the forest and not just the trees. Set an assurance model: You should always assume that project managers are honest when reporting their project, but…beware, optimism bias and watermelon projects exist! Therefore, why not make use of your Project Management Office (I heard PMOs are usually quite good with assurance)? PMOs can do a reality-check by initiating an auditor conducting a project health check to ensure that senior management gets data that is as accurate and factual as possible. Examples of Project RAG Statues RAG Status / Dimension ck; font-family: