Red project status: risks and solutions
A red project status is always stressful for the team. It means that the work is not progressing according to the previously planned trajectory. There can be many reasons for this, such as missed deadlines, deviations from the scheduled algorithm, or budget overruns.
The first thing to do in such a case is to understand exactly what the ‘red’ status means. It can indicate problems with the launch or errors in the project. In any case, the customer needs to be informed. You can then work together to make the necessary decisions, such as postponing the release. Sometimes, the red status can provide additional opportunities to improve the product.
Action algorithm
Communication with stakeholders should follow a certain principle. Red status alarms everyone. Stakeholders act as intermediaries and need to explain the situation to top management. At the same time, they should be aware that the process is under control. One solution could be rescheduling.
In most cases, status changes occur as part of normal reporting at the end of the week or month. Having seen the project progress, the stakeholders should be informed first. This is to share a vision of the problem before communicating with the sponsors. In this way, a solution can be found and presented to management. The discussion will also help to understand the seriousness of the situation. Things may not be as critical as they appear at first glance.
The ideal solution would be to develop a plan to return to green status. However, this may not always be possible in the short term. In addition, there are ways to return to a safe level of project progress:
- Hire more expertise. Increasing the number of employees will help to neutralise the problem quickly and speed up development. This method is effective if the new specialists can be brought up to speed quickly.
- Increase funding. In this case, it is important to think through all the stages and clearly calculate the necessary funds. This will help avoid revisiting the issue in the future.
- Reduce the scope of the work. It may be necessary to move some of the work to a future sprint.
- Increase the lead time. Shifting the release date will give additional time to complete the tasks. Adding 10% to the total planned time is optimal.
The best option is to prevent the red status from appearing. To do this, it is necessary to monitor the work progress regularly and assess the risk level. It is also important to pay attention to the team’s atmosphere and the emergence of difficulties among its members. In any case, stakeholders should be informed about the ongoing processes. By working together, the transition to a threatening status can be anticipated.
