Since 1998 we have sold enterprise (and now SaaS) resource, portfolio, and project management software. One of the most popular features has always been our weekly project and program status reporting tool where the project manager can set the Red/Yellow/Green health status of schedule, scope, resources, budget, and overall project.
What is scary (to me) is that many of our customers want to “over-ride” the Red, Yellow, Green indicators and take health status reporting away from the project managers.
I agree with setting some threshold guidelines around the dimensions of resources, scope, budget, and schedule. I don't believe they should be cut and dry rules that automatically place the project status. Let me explain.
For example they look at our issue logs for aging issues, the number of scope change requests, the deliverables & tasks for late starts, milestone slippage, and resource availabi ...