If you are using a 4017 decade counter, only one of the output pins will be on (therefore only one LED will be on at a time). To me, it looks like the design will cycle through every LED (staying at green 2 cycles longer).
I think the LEDs will cycle as follows (N=North, E=East, G=Green...)
NG - NG - NG - NY - NR - EG - EG - EG - EY - ER - Back to beginning
I'm also confused as to why you have the diodes in series with the green and yellow LED and not with red. Is there a reason you want them in there?
If I were to do it with the 4017 I would set MR to Q3 (maybe Q4 depending on the timing) to force the counter to go back to Q0. This would give you 4 states (Q0-Q3) corresponding to the 4 different states of the system:
NG ER; NY ER; NR EG; NR EY
With this you would connect the following:
Pin 3: Q0: NG and ER
Pin 2: Q1: NY and ER
Pin 4: Q2: NR and EG
Pin 7: Q3: NR and EY and Pin 15: MR
(I also don't think that 100k resistor or 6.8 nF cap are necessary)
Its been a little while so I invite people to examine my suggestions.
D Dean
Of course you still need a resistor before each LED and I don't think you need any diodes.
Also, I' may be wrong but I'm not sure that the 10k resistor between the 555 and 4017 is necessary.