> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stage3.app/llms.txt
> Use this file to discover all available pages before exploring further.

# KPI Status Colors

> Understanding the green, yellow, and red status indicators

## The Traffic Light System

KPI status colors work like traffic lights: green means go (everything's fine), yellow means caution (watch out), and red means stop (take action). This visual system lets you assess process health at a glance.

<Info>
  Color-coding makes it easy to spot problems quickly without reading through numbers and reports. Your eyes naturally go to red, alerting you to what needs attention.
</Info>

## The Three Colors

<CardGroup cols={3}>
  <Card title="Green" icon="circle-check" color="#10b981">
    **Meeting or exceeding target**

    Performance is where it should be
  </Card>

  <Card title="Yellow" icon="triangle-exclamation" color="#f59e0b">
    **Warning zone**

    Not yet critical, but attention needed
  </Card>

  <Card title="Red" icon="circle-xmark" color="#ef4444">
    **Below acceptable level**

    Immediate action required
  </Card>
</CardGroup>

## How Status Is Determined

The system automatically assigns a color when you **record an actual value**. It is **not** based on manual thresholds.

The "Status Preview" is calculated based on:

1. **Your recorded "Actual Value"**
2. **Your "Target Goal"**
3. **Your "What indicates success?" setting** (whether higher or lower is better)

The system calculates how close your actual value is to the goal and assigns a color.

## Status for "Lower Is Better" Metrics

For metrics where smaller numbers are better (like response time or error rate):

<Steps>
  <Step title="Green Status">
    **Value is at or below target**

    You're meeting or exceeding your goal.

    **Example:** First Response Time

    * Target Goal: 2 hours
    * Recorded: 1.5 hours
    * Status: **Green**

    Keep up the good work!
  </Step>

  <Step title="Yellow Status">
    **Value is above target but in the warning zone**

    Performance is slipping but not yet critical.

    **Example:** First Response Time

    * Target Goal: 2 hours
    * Recorded: 2.7 hours
    * Status: **Yellow**

    Pay attention. Trend toward red if nothing changes.
  </Step>

  <Step title="Red Status">
    **Value is significantly above target**

    Performance is unacceptable. Action required.

    **Example:** First Response Time

    * Target Goal: 2 hours
    * Recorded: 4.2 hours
    * Status: **Red**

    Investigate immediately and take corrective action.
  </Step>
</Steps>

## Status for "Higher Is Better" Metrics

For metrics where larger numbers are better (like satisfaction scores or sales):

<Steps>
  <Step title="Green Status">
    **Value is at or above target**

    You're meeting or exceeding your goal.

    **Example:** Customer Satisfaction Score

    * Target Goal: 4.5 out of 5
    * Recorded: 4.7
    * Status: **Green**

    Excellent performance!
  </Step>

  <Step title="Yellow Status">
    **Value is below target but in the warning zone**

    Performance is declining but recoverable.

    **Example:** Customer Satisfaction Score

    * Target Goal: 4.5
    * Recorded: 4.2
    * Status: **Yellow**

    Need improvement to reach target.
  </Step>

  <Step title="Red Status">
    **Value is significantly below target**

    Performance is critically low. Urgent action needed.

    **Example:** Customer Satisfaction Score

    * Target Goal: 4.5
    * Recorded: 3.8
    * Status: **Red**

    Customers are dissatisfied. Address immediately.
  </Step>
</Steps>

## Understanding Team Scorecards

When you have multiple KPIs, you'll see them together in a scorecard or dashboard:

<AccordionGroup>
  <Accordion title="All Green" icon="circle-check" defaultOpen>
    **All KPIs in green zone**

    **Meaning:** Process is performing well across all dimensions

    **Action:**

    * Maintain current practices
    * Document what's working
    * Consider raising targets for continuous improvement
  </Accordion>

  <Accordion title="Some Yellow" icon="triangle-exclamation">
    **One or more KPIs in yellow zone**

    **Meaning:** Process is mostly healthy but needs attention in specific areas

    **Action:**

    * Monitor yellows closely
    * Identify why those metrics are slipping
    * Implement corrective actions
  </Accordion>

  <Accordion title="Some Red" icon="exclamation-triangle">
    **One or more KPIs in red zone**

    **Meaning:** Process has serious issues requiring immediate action

    **Action:**

    * Investigate root cause of reds immediately
    * Implement fixes as top priority
    * Communicate to stakeholders
  </Accordion>
</AccordionGroup>

## Reading Trends with Colors

Don't just look at current color. Look at the trend:

<Tabs>
  <Tab title="Improving Trend">
    **Colors moving from red → yellow → green**

    **Great news!** Your process improvements are working.

    **Action:**

    * Document what you changed
    * Sustain the improvements
    * Share lessons learned

    **Example timeline:**

    * Month 1: Red (4.5 hrs)
    * Month 2: Yellow (2.8 hrs)
    * Month 3: Green (1.9 hrs)
  </Tab>

  <Tab title="Declining Trend">
    **Colors moving from green → yellow → red**

    **Warning!** Performance is deteriorating.

    **Action:**

    * Investigate what changed
    * Review if something broke in the process
    * Take action before hitting red if possible

    **Example timeline:**

    * Month 1: Green (1.8 hrs)
    * Month 2: Yellow (2.5 hrs)
    * Month 3: Red (4.1 hrs)
  </Tab>

  <Tab title="Stable">
    **Same color for extended period**

    **If stable green:** Good. Process is consistently meeting targets.

    **If stable yellow/red:** Concerning. Process is consistently underperforming.

    **Action:**

    * For stable green: Maintain, or consider stretch goals
    * For stable yellow/red: Process changes needed
  </Tab>

  <Tab title="Volatile">
    **Colors jumping between green, yellow, red unpredictably**

    **Concerning.** Indicates inconsistent execution or external factors.

    **Action:**

    * Investigate why performance is inconsistent
    * Look for patterns (day of week, who's working, etc.)
    * Standardize process execution
  </Tab>
</Tabs>

## What to Do for Each Color

<CardGroup cols={3}>
  <Card title="Green" icon="circle-check" color="#10b981">
    **Actions:**

    * Continue current practices
    * Document what works
    * Share with team
    * Consider stretch goals

    **Frequency:** Review weekly
  </Card>

  <Card title="Yellow" icon="triangle-exclamation" color="#f59e0b">
    **Actions:**

    * Monitor closely
    * Identify causes
    * Plan improvements
    * Prevent decline to red

    **Frequency:** Review daily
  </Card>

  <Card title="Red" icon="circle-xmark" color="#ef4444">
    **Actions:**

    * Investigate immediately
    * Take corrective action
    * Communicate to team
    * Escalate if needed

    **Frequency:** Review multiple times daily
  </Card>
</CardGroup>

## Communicating with Colors

Colors make communication faster and clearer:

<Tabs>
  <Tab title="Executive Reports">
    "Customer Support is **Green** across all metrics. Sales is **Green** except for conversion rate which is **Yellow** and improving. Operations has one **Red** KPI (fulfillment time) which we're actively addressing."

    Executives get the full picture in seconds.
  </Tab>

  <Tab title="Team Meetings">
    "Let's review our scorecard. We have 4 Greens, 2 Yellows, and 1 Red. The Red is our response time, which spiked yesterday. Let's focus on that."

    Team knows immediately where to focus discussion.
  </Tab>

  <Tab title="Email Updates">
    Subject: "Weekly KPI Update: 5 Green, 1 Yellow, 0 Red"

    Recipients know status before even opening the email.
  </Tab>
</Tabs>

## Visual Dashboard Example

A typical KPI dashboard might look like:

| KPI                      | Current Value | Target | Status | Trend     |
| ------------------------ | ------------- | ------ | ------ | --------- |
| First Response Time      | 1.8 hrs       | 2 hrs  | Green  | Improving |
| Resolution Time          | 6.2 hrs       | 8 hrs  | Green  | Stable    |
| Customer Satisfaction    | 4.3           | 4.5    | Yellow | Declining |
| Ticket Backlog           | 45            | 30     | Red    | Worsening |
| First Contact Resolution | 78%           | 80%    | Yellow | Improving |

At a glance, you know:

* Two metrics are performing well
* Two need attention
* One requires immediate action
* Trends show which way things are heading

## Tips for Success

<CardGroup cols={2}>
  <Card title="Review Regularly" icon="calendar">
    Check status daily for critical KPIs, weekly for others. Colors are only useful if you look at them.
  </Card>

  <Card title="Act on Reds" icon="bolt">
    Red status must trigger action, every time. If you ignore reds, the system loses value.
  </Card>

  <Card title="Don't Ignore Yellows" icon="triangle-exclamation">
    Yellows are warnings. Address them before they become reds.
  </Card>

  <Card title="Celebrate Greens" icon="party-horn">
    Acknowledge when the team achieves green status. Positive reinforcement matters.
  </Card>
</CardGroup>

## Next Steps

<CardGroup cols={3}>
  <Card title="Recording KPI Values" icon="pen-to-square" href="/processes/recording-kpi-values">
    Learn how to track values that generate these colors
  </Card>

  <Card title="Creating KPIs" icon="plus" href="/processes/creating-kpis">
    Create KPIs with proper thresholds
  </Card>

  <Card title="What Are KPIs?" icon="circle-question" href="/processes/what-are-kpis">
    Review KPI fundamentals
  </Card>
</CardGroup>