red-yellow-green success criteria
TRANSCRIPT
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.
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.
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.
© 2016 Rhythm Systems, Inc.
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.
© 2016 Rhythm Systems, Inc.
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
© 2015 Rhythm Systems, Inc.
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
© 2015 Rhythm Systems, Inc.
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
© 2015 Rhythm Systems, Inc.
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
© 2015 Rhythm Systems, Inc.