Ross Andren explains the limitations of traditional 'traffic light' reports, and how they can be enhanced.

Red, Amber and Green traffic light indicators are frequently used in status reports as they summarise performance information and allow the audience to focus on expectations.

However, it is common for reports to show the status as 'green' when the reality is amber or worse. Setting aside cultural reasons why this may be so, there are often two overlooked facts about using traffic lights - what they mean and when they should change.

For example, the most effective traffic lights provide a forewarning of progress, enabling the audiences to take corrective action. Key traffic lights should (at least) include:

- Scope
- Time
- Cost
- Quality
- Risk
- Benefits

However, by themselves these are relatively meaningless without some rules (thresholds) for applying traffic lights.

For example, the schedule traffic light may be:

- 'Green' if we are on track to deliver the project as currently baselined in the schedule (baselinbes may change of course)
- 'Amber' if we have slipped on a deliverable by [a week or less]; or
- 'Red' if we have slipped on a deliverable by [greater than a week].

Note that the time information in brackets above needs to be crafted to be suitable from project to project.

This is best determined from the outset of the project with the Sponsor.

So traffic lights and their thresholds need to be...

- specific to meaningful areas of control for the Business;
- assigned on the basis of clear rules for those areas;
- tailored and relevant to the nature and timing of the project undertaken.

... otherwise they are purely a subjective measure, rather than a useful indicator.

 

A recent addition to the UXCTG team of facilitators after a decade as a management consultant specialising in Project Management processes and technologies, Ross brings a wealth of PM and CM experience across multiple countries and industries.
He has a strong technology background and is passionate about bringing the focus back to the people relationships in business through training and education. 


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