Set Performance Targets and Red-Amber-Green (RAG) Thresholds

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Set Performance Targets and Red-Amber-Green (RAG) Thresholds within SmartERP.

Configuring baseline benchmarks, stretch targets, Red-Amber-Green tolerance bands, and perspective weighting.

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2. Prerequisites & Security Access Groups#

• Required Modules: smarterp_balanced_scorecard, smarterp_strategy
• Security Groups:
  • Strategy Officer (Technical ID: smarterp_balanced_scorecard.group_bsc_user)
  • Strategy Director (Technical ID: smarterp_balanced_scorecard.group_bsc_manager)
  • Executive Committee Member (Technical ID: smarterp_balanced_scorecard.group_bsc_executive)
• Master Data Dependencies: Strategic themes, 4 BSC perspectives (Financial, Customer, Internal Process, Learning & Growth), corporate KPIs, and quarterly appraisal periods.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Strategic Execution app icon.
4. From the top navigation bar, open Strategic Execution → Perspectives → Strategic Objectives / KPIs / Action Plans.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Objective / KPI Name (Mandatory): Precise strategic outcome statement
   • Perspective (Mandatory): One of the 4 balanced perspectives with mandated weighting
   • Weight (%) (Mandatory): Percentage allocation contributing to overall perspective score
   • Target Value & Baseline (Mandatory): Quantifiable numerical goal and historical starting point
3. Configure optional operational parameters and localized tags as required:
   • Calculation Formula (Optional): Automated SQL query or module model metric extraction
   • Initiative Champion (Optional): Department head or senior manager accountable for result
   • Review Frequency (Optional): Monthly, quarterly, or annual appraisal cadence
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (Draft → Active Target → Mid-Term Review → Final Appraisal → Locked).
• Ledger & System Impact: Financial perspective KPIs dynamically read General Ledger balances, revenue growth metrics, and cost ratios directly from the accounting engine.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Target Setting Methodology#

Every KPI requires calibrated baseline benchmarks and realistic stretch targets aligned with annual operating plans (AOP).

Red-Amber-Green (RAG) Tolerance Limits#

SmartERP standardizes performance evaluation using five-tier RAG tolerance bands:

Score >= 100%: Outstanding Performance (Dark Green)
Score 90% - 99%: Target Met (Green)
Score 75% - 89%: Minor Deviation / Attention Required (Amber)
Score 50% - 74%: Significant Underperformance (Red)
Score < 50%: Critical Failure (Dark Red)

Procedure: Setting RAG Bands#

1. On the KPI form, switch to the Targets & Thresholds tab.
2. Select current fiscal year (e.g., 2019 E.C. / 2026-2027 G.C.).
3. Enter targets per period:
   • Q1 Target: 100,000,000 ETB.
   • Q2 Target: 120,000,000 ETB.
   • Q3 Target: 135,000,000 ETB.
   • Q4 Target: 150,000,000 ETB.
4. Define RAG Threshold Percentages:
   • Green Minimum: 90%.
   • Amber Range: 75% - 89%.
   • Red Trigger: Below 75%.
5. Set Weighting Percentage (e.g., 20% of the Financial Perspective).
6. Click Save.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • BSC: Calculate quarterly KPI achievements (smarterp_bsc.ir_cron_compute_kpi): Runs quarterly on the 5th to compute composite achievement scores
  • BSC: Issue appraisal cascade reminders (smarterp_bsc.ir_cron_appraisal_alert): Runs monthly to remind objective champions to update progress
• Custom Print Templates & Reports:
  • Institutional Balanced Scorecard Executive Dashboard
  • Departmental Strategic Cascade Matrix
  • KPI Performance Variance & Trend Analysis
  • Corporate Strategy Execution Summary
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#