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?
At the Key Result Level
Progress of the objectives is calculated from the average of the progress on its key results. RAG is driven by the probability at current course and speed the user will hit at least 85% of the KR target.
How much time is left in the time-period, how much progress have you made, what is the probability you will achieve 85% of the target.
If a KR is Never Updated and half the OKR time period has passed, the progress color on the KR will turn Red.
At the Objective Level
The average completion percentage of all of the Key Results gives you the Objective progress completion percentage.
The color for the Objective is based on the average of the probability for all Key Results.
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 to success or you need to focus to accelerate given your current course and speed, progress to date, and time remaining.