When Green Isn’t Really Green: What Project Health Indicators Are Really Telling You

In many PMOs, status updates are meant to serve as a transparent, timely reflection of how projects are performing. Yet too often, these reports get diluted by ambiguity. A project marked "Amber" might mean it's slightly delayed, deeply troubled, or just missing one key approval. Worse, a "Green" project might actually be teetering on the edge of real issues.

Across organizations of all sizes, this inconsistency creates confusion. Stakeholders get surprised. Executives question the reports. And project managers are left stuck between telling the truth and protecting themselves or their sponsors.

The RAG Illusion: Why We Can't Keep Letting Feelings Dictate Colour

RAG indicators are supposed to give us a quick, visual signal of project health. But in too many PMOs, they’ve become meaningless. One PM’s Amber is another PM’s Green. One sponsor’s Red is another sponsor’s political nightmare.

What should be a clear truth has turned into a subjective art. And that’s dangerous.

As PMO leaders, we need to take ownership of this. We’re the ones responsible for building the rules of engagement for project reporting. If your PMO still relies on vibes and gut feelings to set RAG status, your entire portfolio is at risk.

Why We End Up Here: The Root Causes

• No standard criteria for RAG status: PMs decide based on mood, pressure, or politics.

• Sponsors resist Red/Amber statuses: Fear of exposure, blame, or resource implications.
• Lack of consequences or action tied to RAG: No reason to take it seriously if nothing changes after reporting.

Step One: Define Your RAG Criteria, Clearly and Unemotionally

You need a definition that doesn’t bend with opinion.

Here’s an example of a RAG framework that has worked across small and large PMOs:

Red:

• Forecasted delay over 15% or confirmed breach of timeline/budget
• Major issues unresolved; project may miss key milestones or fail to deliver as planned

Amber:

• Forecasted delay of 6–15% to schedule or cost
• Open risks/issues may impact delivery but mitigation is in progress

Green:

• On track with scope, timeline, and budget within 5% variance
• No unresolved risks or issues threatening delivery

Make this policy visible. Train everyone. Bake it into reporting templates.

And make sure the entire organization, not just PMs, signs off on it. The RAG criteria must be co-owned by executives, delivery teams, and governance bodies.

Step Two: Implement Escalation Triggers

RAG status isn’t just a label—it’s a signal for action. If nothing happens when a project turns Amber or Red, the status becomes meaningless. Here’s an example on how to make it matter, without turning it into punishment:

• Amber in 2 consecutive reports: This is a warning sign that risks are becoming persistent. Trigger a proactive check-in with the PMO leader and, if needed, raise it at the next steering committee. The goal is support and intervention before things worsen.

• Red in any report: A Red status is serious but manageable—if acted upon quickly. Require the team to submit a clear, time-bound Go-to-Green plan within 5 business days, detailing actions, owners, and deadlines.

• Red for 2 consecutive reports: This means the issue isn’t resolving fast enough. The Executive Sponsor must now step in to review the Go-to-Green plan directly with the governance or portfolio leadership team. This reinforces accountability at the highest level.

We don’t punish bad news. But we don’t ignore it either. Status colors aren’t decorations for dashboards—they are signals that mobilize the right people at the right time to help.

Step Three: Standardize Go-to-Green Plans

A status change means a recovery plan. Period.

Every Go-to-Green plan should have:

• Root cause analysis
• List of corrective actions
• Named owners for each action
• Dates when each action will be completed
• Forecasted date the project returns to Green

No vague promises. No "we’ll try harder."

Example:

"Milestone delay due to resource unavailability. Corrective action: Confirm external contractor contract by June 30 (Owner: Procurement). Re-baseline timeline after onboarding (Owner: PM). Forecasted return to Green: July 15."

Attach this to the executive summary in the project dashboard. It shouldn’t be buried 8 slides deep.

Step Four: Get Ahead of Sponsor Resistance

Here’s what no one tells you: most sponsors don’t hate the colour Red. They hate being surprised by it.

If you want sponsors to stop fighting you on status colours:

• Include them in RAG determination. Pre-review the draft with them.
• Explain the consequences. Show that Red = help, not punishment.
• Position PMs as the messenger, not the judge. PMs report facts. The RAG status comes from the criteria.
• Highlight Go-to-Green plans in reviews. Show the solution, not just the problem.

When sponsors are treated as collaborators in the process, not just recipients of bad news, trust builds. And trust leads to better reporting and faster action.

Step Five: Create PMO Support Structures

Most PMs don’t resist this process because they’re lazy. They’re overworked, afraid of the politics, or unsure how to do it right.

Here’s how to help:

• Give them a RAG calculator or tool. Simple yes/no questions that output a status.
• Provide Go-to-Green templates. Pre-filled examples help them learn by seeing.
• Coach them on executive storytelling. Help them write updates that are confident and clear.
• Back them up when they report Red. Let them know you’ll take the heat if needed.

What Happens When You Get This Right

PMOs that implement these practices consistently see stronger credibility with executives, cleaner decision-making, and fewer escalations caused by surprise.

One organization reported a 40% drop in portfolio-level escalations after adopting a consistent RAG and recovery plan process. Another saw its executive committee meetings cut in half because the updates were so clear, discussions focused on decisions, not clarification.

Final Thoughts

We can’t control every delivery risk. But we can control how we talk about them. Clear, factual, and consistent reporting is the PMO’s superpower.

If your reporting still changes based on who’s in the room, it's time to put the right guardrails in place. RAG should reflect reality, not relationships.

If this hit home for you, I want to hear about it. How does your PMO handle RAG? What battles have you faced getting sponsors to accept Red?

If your team needs help designing clear RAG criteria or implementing better governance practices, check out our Project & Portfolio Governance services.

Or, if you're ready to talk through your PMO challenges, book a 30-minute consultation with us.

Let’s work through this together.