The RAG (red, amber, green) Rating colors indicate the risk that you won't hit the level of achievement you expected on your OKR. It's a signal, in addition to Confidence Ratings, to pay attention to your Key Results.
While it sounds simple, the calculation is actually complex because of the wide variety of measurements, different measurement intervals, and so on.
The RAG colors change based on the amount of progress from your starting point to your key result target compared to the amount of time remaining in the quarter. It applies the OKR thesis, so it also reflects that you aren't trying to achieve 100% of OKRs.
How is the RAG rating calculated?
An Objective’s progress percentage is calculated from the average progress of its Key Results.
An Objective’s RAG rating is a color-based scale that ranges from Red to Green. A Red or Amber RAG rating indicates the risk that the level of achievement expected on your Objective may not be met, whereas a Green rating indicates you’re on track based on the current progress of your Key Results.
A Key Result’s RAG rating indicates how likely you are to achieve success based on the progress made and the remaining time, as shown in the thresholds below. Other factors that can influence the RAG rating include expected progress, the last update, and whether it’s committed.
At the end of the objective period, achievement on OKRs maps to the following RAG colors based on the following thresholds:
- If RAG Score > 90%, Dark Green
- If RAG Score > 70%, Light Green
- If RAG Score > 50%, Amber
- If RAG Score < 50%, Red
Ultimately, progress colors tell you whether you're tracking towards success or you need to focus to accelerate given your current course and speed, progress to date, and time remaining.