Project Termination
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Types of
terminations
How and why
projects terminate
Typical termination
activities
Need for a project
history
13-1
All Things Come to an End . . .
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Termination rarely has much impact on
technical success or failure . . .
But a huge impact on other areas
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Residual attitudes toward the project (client,
senior management, and project team)
Success of subsequent projects
So it makes sense to plan and execute
termination with care
13-2
When Do Projects Terminate?
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Upon successful completion, or . . .
When the organization is no longer
willing to invest the time and cost
required to complete the project, given
its current status and expected
outcome.
13-3
Most Common Reasons
Projects Terminate
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1. Low probability of technical/commercial
success
2. Low profitability/ROI/market potential
3. Damaging cost growth
4. Change in competitive factors/market
needs
5. Unresolvable technical problems
6. Higher priority of competing projects
7. Schedule delays
Source: Dean, 1968
13-4
Decision Structure for a
Termination Decision, Figure 13-1
13-5
Four Varieties of Project
Termination
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1. “Termination by extinction”
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Project has successfully completed, or it
has failed
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Natural passing, or “termination by murder”
Either way, project substance ceases, but much
work needs to be done
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Administrative
Organizational
13-6
Four Varieties of Termination
(cont’d)
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2. “Termination by addition”
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The project becomes a formal part of the
parent organization
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People, material, facilities transition
The example of Nucor
3. “Termination by integration”
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Project assets are distributed to and
absorbed by the parent
13-7
Four Varieties of Termination
(cont’d)
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4. “Termination by starvation”
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Withdrawal of “life support”
Can save “face,” avoid embarrassment,
evade admission of defeat
13-8
Typical Termination Activities
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In general, there are seven categories
of termination tasks. Examples of
activities:
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1. Personnel
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Dealing with “trauma of termination”
Finding “homes” for the team
Who will “close the doors?”
2. Operations/Logistics/Manufacturing
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Rethinking systems
Provisions for training, maintenance, spares
13-9
Termination Activities (cont’d)
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3. Accounting and Finance
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Accounts closed and audited
Resources transferred
4. Engineering
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Drawings complete/on file
Change procedures clarified
13-10
Termination Activities (cont’d)
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5. Information Systems
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6. Marketing
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Configuration and documentation in place
Systems integrated
Sales and promotion efforts in line
7. Administrative
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All organizations aware of change
13-11
A Design for Project
Termination, Figure 13-2
13-12
Project History
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One of the major aims of termination is
development and transmittal of “lessons
learned” to future projects
One way to do that is through a project
history
13-13
Contents of a Project History
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1. Project Performance
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2. Administrative Performance
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What was achieved; successes, challenges,
failures
Reports, meetings, project review procedures; HR,
financial processes
3. Organization Structure
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How structure evolved, how it aided/
impeded progress
13-14
Contents of a Project History
(cont’d)
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4. Project and Administrative Teams
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Performance of the project team,
recommendations
5. Project Management Techniques
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Planning, budgeting, scheduling, risk
management, etc.: what worked, what
didn’t
13-15
Challenges to Meaningful
Project Histories
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Since the project history has so much
potential benefit, why is it often done poorly,
or not at all?
Possible reasons
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No one sees it as their job
PM has many other priorities, especially as project
winds down
Long duration projects mean many PMs,
voluminous record, little corporate memory
PMs may be more attuned to looking forward than
looking back
13-16