The document discusses how to set success criteria called "Red-Yellow-Green" or RYG to help teams achieve their goals. It recommends first defining a realistic and achievable "Green" goal for success. Next, set a minimum "Red" level for unacceptable performance. "Yellow" falls between Red and Green. Examples show how to effectively set RYG criteria for priorities and key performance indicators (KPIs) using clear, specific metrics rather than vague descriptions or unrealistic dates. With well-defined RYG criteria, teams will know exactly what success looks like and can make adjustments to ensure they win.

1. How to Win with
Red-Yellow-Green®

2. 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.

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

4. © 2016 Rhythm Systems, Inc.
HOW TO SET RED-
YELLOW-GREEN

5. 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.

6. 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.

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

8. Leave nothing up to interpretation. Be as clear
and specific as you can.
Setting RYG on a Priority:
1
2
3
4
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.

9. KPIs are metrics, so the success criteria will always
be a number.
Setting RYG on a KPI:
1
2
3
4
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.

10. © 2016 Rhythm Systems, Inc.
LET’S LOOK AT
SOME EXAMPLES

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

12. USING A DATE:
SuperGreen: Mar. 1, 2016
Green: Mar. 15, 2016
Yellow: between R & G
Red: April 1, 2016
NOT BEING CLEAR:
SuperGreen: Done early
Green: Done
Yellow: between R & G
Red: Not done
INEFFECTIVE
© 2015 Rhythm Systems, Inc.

13. SuperGreen: New handbook
distributed to company
Green: New handbook reviewed &
approved by CEO
Yellow: between R & G
Red: 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.

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

15. NOT USING A NUMBER:
SuperGreen: Better than competition
Green: Better than last quarter
Yellow: between R & G
Red: Same as always
NOT BEING REALISTIC:
SuperGreen: $500M
Green: $450M
Yellow: between R & G
Red: $400M
INEFFECTIVE
© 2015 Rhythm Systems, Inc.

16. SuperGreen: $25k
Green: $20k
Yellow: between R & G
Red: $10k
NOTE: These numbers should be
realistic and on track to achieve the
revenue targets you set in
planning.
EFFECTIVE
© 2015 Rhythm Systems, Inc.

17. 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
!