What is a RAG document in S/4HANA Programme Management?

What is a RAG Document

When you’re talking about project management the term RAG gets bandied about. Sometimes it even gets used as a verb - “I’ve made a list and RAG’d it”.

In order to drive consistency in the way we work across the company, it’s important that we really define what we mean when we talk about a RAG - as well as being clear about what each status should be used for. 

A RAG Document is a tool for project status reporting that is used by the PMO or a Project Manager. 

The RAG comprises all the tasks required on a project - or a certain part of the project - and visually signifies whether they are running as planned, are a cause for concern, or require escalation. 

As part of a drive for consistency across the business, we should not refer to items using a traffic light system as a RAG unless the document is being used for project status reporting. 

We may choose to use the red, amber, and green colourways to convey information such as complete, in progress, or not started - but this document should not be referred to as a RAG.

How does a RAG Document Work

RAG Documents are created and used by everyone on a Programme, and validated by the the PMO. They should be used as a simple and consistent visual tool in meetings and feed into any decision making process that helps keep the Programme on track.

Individuals are responsible for setting the correct status for the tasks they have been assigned, and the PMO are responsible for the overall completion and accuracy of the RAG.

The objective of a RAG is not to have as many tasks labelled Green as possible, but to accurately report the status of the tasks within a project.

Why are RAG Documents Important

RAG Documents are important because they quickly and simply convey to an entire project team when a task is at risk of falling behind or requires escalation. 

The use of the traffic light system means anyone can understand there is a problem in a given area of the project without needing any technical knowledge about that area. 

If status updates were given only in a written form it may not be clear to everyone involved in a project how severe a problem is.

Using a simple traffic light system surpasses this problem and makes sure everyone is on the same page when it comes to acknowledging risks, issues and delays.  

Understanding each status at a high level

 A RAG document uses three tiers of status - Red, Amber and Green. To drive consistency in Resulting, with our clients, and within our RAG Documents, these statuses must be clearly understood and defined. 

They must also be equated to convey an equivalent overall level of severity even when used in different areas of a project, or by different functions within the business.

That means a Resourcing Red must be as severe as a Scheduling Red. An Amber from the HR team must get the same attention as an Amber from the IT team.

In Resulting - this is how we define each RAG Status.

Red - Behind schedule against target date with no current plan to recover. This requires an escalation. The project team need help to resolve a problem. 

Amber - Behind schedule against target date but with a current plan to recover. It’s for awareness. The project may need assistance in the future. The issue is currently being handled within the project team but management team should be aware.

Green - On schedule against target date. Project progressing to plan.

Note: When items are Complete, they are often marked in Blue (BRAG).

Using a RAG status indicator on S/4HANA Programme Delivery

RAGs are used in project management across a wide range of industries. At Resulting, we are primarily concerned with IT and SAP project management - so our RAG Documents reflect this.

All RAG Documents we created should include (but are not limited to) 5 key areas.

Resourcing, Scoping, Scheduling, RAAIDD and Budget.

Individual projects may require other areas to be tracked in the RAG as well - and this will be dictated by the nature of the project, the industry the client works in, and a myriad of other factors. 

Across the 5 key sections we always cover, this is how we define each degree of RAG status.

Resourcing RAG Status

Scope RAG Status

Schedule RAG Status

RAAIDD RAG Status

Budget RAG Status