Red-Yellow-Green Success Criteria

How to Win with Red-Yellow-Green®

Stephen Covey is famous for his 7 Habits. Habit #2 says “Begin with the end in mind.” Visualizing success and clarifying what it looks like with your team is the best way to begin with the end in mind.

Without it, you won’t have real clarity on the end result and you won’t be able to have objective discussions and make adjustments weekly to keep your priorities and KPIs on track for a successful finish.

WHY RED-YELLOW-GREEN?

© 2016 Rhythm Systems, Inc.

You need to set Red-Yellow-Green success criteria in order to make adjustments to win.


HOW TO SET RED-YELLOW-GREEN

First, determine the successful outcome you’re looking for and set that as your Green goal. Be sure this goal is realistic and achievable. Set a SuperGreen goal to stretch your A-Players.

Next, define your minimum level of acceptable performance. Any result below that is Red. This clearly defines failure so your team can manage themselves away from this result.

Finally, Yellow is any result that falls between Red and Green.

Leave nothing up to interpretation. Be as clear and specific as you can.

Setting RYG on a Priority:

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You can measure a Priority two ways: tactically or with a number. Avoid using dates as these should already be determined in the Priority itself.Your criteria should describe and drive results and should be realistic within the quarter timeframe.

Ensure the team is aligned around the success criteria before the quarter starts.


KPIs are metrics, so the success criteria will always be a number.

Setting RYG on a KPI:

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Make sure your Green goal is realistic, measurable and achievable.

Ensure your success criteria on KPIs is aligned with the Targets you set for your quarter and your year.

Again, alignment is key! Agree on the success criteria as a team before the quarter starts.



LET’S LOOK AT SOME EXAMPLES

Example 1: Q1 Priority for HR Manager“Update employee handbook to include new onboarding

process”

USING A DATE:SuperGreen: Mar. 1, 2016Green: Mar. 15, 2016Yellow: between R & GRed: April 1, 2016

NOT BEING CLEAR:SuperGreen: Done earlyGreen: DoneYellow: between R & GRed: Not done

INEFFECTIVE


SuperGreen: New handbook distributed to companyGreen: New handbook reviewed & approved by CEOYellow: between R & GRed: New process not documented

NOTE: When you write a priority, you should already assign an owner and due date, so using dates for the RYG criteria is redundant.

EFFECTIVE


Example 2: Q1 KPI for Sales Manager“Sales Revenue”

NOT USING A NUMBER:SuperGreen: Better than competitionGreen: Better than last quarterYellow: between R & GRed: Same as always

NOT BEING REALISTIC:SuperGreen: $500MGreen: $450MYellow: between R & GRed: $400M

INEFFECTIVE


SuperGreen: $25kGreen: $20kYellow: between R & GRed: $10k

NOTE: These numbers should be realistic and on track to achieve the revenue targets you set in planning.

EFFECTIVE


With clear success criteria on all KPIs and Priorities for the quarter, you know exactly what success looks like. If you begin with the end in mind and are aligned with your team, you can

achieve breakthrough execution and win your 13-Week RaceTM!

Red-Yellow-Green Success Criteria

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