Chapter 16:
Closing
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What Is Involved in Closing
Projects?
• Closing processes include gaining stakeholder
acceptance of the final product and bringing the
project or phase to an orderly end
• Closing verifies that all of the deliverables have
been completed
• A project audit is often done
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Transition Planning
• It is important to plan for and execute a
smooth transition of the project into the
normal operations of the company
• Most projects produce results that are
integrated into the existing organizational
structure
• Some projects require the addition of new
organizational structures
• Some projects end by extinction or starvation
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Table 16-1. Closing Processes and
Outputs
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Administrative Closure
• Administrative closure involves
– verifying and documenting project results to
formalize acceptance of the products produced
– collecting project records
– ensuring products meet specifications
– analyzing whether the project was successful and
effective
– archiving project information for future use
• NWA had several reviews of the benefits of
ResNet
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Table 16-2. ResNet Benefits Results
from March 1996 Benefits Review
Measurement
Call Handle Time
Direct Ticket Sales/100 Calls
New Hire Training
Result
4.4% Reduction
6.0% Increase
Better Call Handle Time with 25% Less Training
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ResNet Audit
• A formal audit was completed on December
10, 1996
• Two main questions addressed:
– What benefits, in terms of selling and call handle
time, have been realized by the Reservations
Department as a result of ResNet
– How do those real results compare with projected
results in the PR2 plan?
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Audit Answers to Questions
• The Reservations Department has significantly increased
selling as a result of management leadership, the market
environment, and the opportunities provided by ResNet as a
selling tool
• While increased selling, new hires, E-ticket sales, and other
factors have increased Reservations' average call handle
time for 1996, statistics support a handle time benefit from
ResNet conversion
• Of the two items audited, the higher than expected increase
in selling compensated for the shortfall in call handle time,
resulting in a net gain of $0.8 million to Northwest Airlines
in 1996 versus the PR-2 projections.
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Final Audit Report Results
• ResNet greatly surpassed expectation
• ResNet increased direct sales by 17.7% versus
the planned 5.5%
• This increase in direct sales meant an
additional $2.3 million in 1996 commission
savings
• In its first year of operation, ResNet saved
Northwest Airlines over $15 million, and
savings were over $33 million in the second
year
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Figure 16-1. Selling Impact of ResNet
Direct sales greatly exceeded expectations!
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Audit Methodology
• The audit methodology showed the amount of
rigor that NWA put into its project audits and
benefits measurement (see What Went Right?)
• Experts analyzed historical information and
ensured that data was not biased
• Several statistical techniques were used to
develop and measure the benefits of ResNet
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ResNet Final Recognition Party
and Personnel Transition
• Peeter and his team knew how important
strong starts were, and they also wanted to
have a strong finish
• A final recognition party celebrated
everyone’s achievements on ResNet
• Peeter again authorized funds to hire actors to
help organize fun events like the ResNet Rap
performance
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Figure 16-2. ResNet Developers’ Rap*
[click, click, click, click]
Gotta Code, Code [click, click]
Gotta Cooode, Code [click, click]
Gotta Code, Code [click, click]
Gotta Load…
Gotta load to Code.
[click, click]
We developed ResNet, yes siree..
We hadta get it done in big hurry.
We were given a timeline that was set...
the bosses said it must be met.
Started with some charts, listened to some
calls..
spent lots of time, climbin the walls.
Hadta come in early, hadta stay real late…
Hadda deadline comin, and it couldn’t wait.
[click, click]
Gotta Code, Code [click, click]
Gotta Cooode, Code [click, click]
Gotta Code, Code [click, click]
Gotta Load…
Gotta load to Code.
[click, click, click, click]
Eleven applications make ResNet cool...
But before we coded, we hadta go to school.
Popups, Quadrants, command cells too...
How to make’em fit on a screen of blue?
Config class gave us an over view...
Went to Baltimore to really get a clue.
Alpha test, Beta tests were a must...
If we didn’t pass’em, we’d a had a bust.
[click, click]
Gotta Code, Code [click, click]
Gotta Cooode, Code [click, click]
Gotta Code, Code [click, click]
Gotta Load…
Gotta load to Code.
[click, click, click, click]
National, International then Supervisor...
By this time - everyone was wiser.
On came the Worldperks Application...
That’s when we realized the fun begun.
CTI, ResDoc, Iron Range too...
Everything - suddenly, seemed brand new.
TBM and Rates together as one...
Beta in Detroit, Fun, Fun, Fun.
ET’s, DT’s, and MetroMail...
Calculate those taxes for the next sale.
Specialty Sales 12 desks strong…
Who would’ve thought they’d all belong.
Consolidators, Groups, conventions and
Cruises..
The way we’ve coded, nobody loses.
[click, click]
Gotta Code, Code [click, click]
Gotta Cooode, Code [click, click]
Gotta Code, Code [click, click]
Got a load…
Gotta load to Code.
[click, click, click, click]
We built an application for CRC…
Meal Dispatch and IMC.
They call their office Jurassic Park…
Now with ResNet they’re not in the dark.
Service Support had so much to do
Using ResNet, they’re right on Queue.
Sales Action Center, our grand finalee..
built to help the travel agency.
Promote, distribute, activate...
The IS group - kept us straight.
With each new office to define...
we hadta rely on our great hotline.
Challenging, though the task may be
We managed to keep our sanity.
* Written by Nancy Desch
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What Went Wrong?
NWA still struggles with transferring people,
roles, and responsibilities between projects and
on-going operations. For example, there were
problems after completing the Computer
Telephony Integration (CTI) work for ResNet
1996…This lack of transition planning caused
several conflicts after the ResNet project ended.
Senior management had to intervene to resolve
these conflicts.
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Lessons Learned
• Although the ResNet team did not write any formal lessons
learned, Peeter, Kathy, and Arvid shared the following advice:
– Let workers have fun
– Beginnings are important
– Top management support is critical
– Managing change is 50% of project management
– Make management reviews interactive
– Set realistic milestone dates, and then stick to the schedule
as much as possible
– Plan at a workable level
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ResNet+
• Business and market forces added new
requirements to ResNet
• Arvid Lee led the ResNet+ project to add more
capabilities to ResNet
• Project cost was $12.5 million, and it ran from
July 1998 through May 2001
• NWA is focuses on business needs as the basis
for ResNet+ and all new projects
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New ResNet+ Functions
• New business functions: Changes were made due to a
new frequent flier system, new marketing programs
with alliance partners, and changes to Worldspan
• Computer-based training: New call center agents can
complete a full training curriculum online
• ResQuest: This feature provides an integrated intranetbased online reference system with access to nearly
40,000 documents
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Figure 16-3. Business Need for ResNet+
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Not an Automatic “No-brainer”
• ResNet+ fully supports travel plans booked
directly by customers via the Internet
• Arvid Lee says that converting to a totally Webbased application is not an automatic “nobrainer” decision
• The current ResNet+ interface is designed for
high productivity
• It would be a major financial investment to
convert to a Web-based application
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