Project Management: A
Managerial Approach
Chapter 13 – Project Termination
1
Overview
• Methods of Project Termination
• Early Project Termination
• Project Shortcomings
• PM Responsibilities
• Project Final Report
2
Project Termination Conditions
• A project can be said to be terminated when
•
work on the substance of the project has
ceased or slowed to the point that further
progress is no longer possible
There are four fundamentally different ways
to close out a project: extinction,
addition, integration, and starvation
3
Project Termination Factors
1. Low Probability
– Technical Objectives
– Commercial Viability
– ROI Achieved
2. No Solution
– Engineering Design
– Lasting Process
3. Intellectual Property Issues
4
Project Extinction
• All (substantive) activity ceases
• Stopped:
– Successful
• Met goals
– Unsuccessful
• Failed tests
– Superceded
• External event
• “Extinction by Murder”
– Political assassination; “projecticide”
– Mergered redundancy
5
Project Addition
• Project becomes a part of organization
– New functionality
– “Protected” status
• Transfer of assets
– People
– Equipment
• Addition of responsibilities
– Budgets
– Practices and procedures
– “P&L”
6
Project Integration
• Most Common
• Most Complex
• Project Outcome(s) Become(s):
– Part of Acquiring Organization
– Redistribution of Residual Resources
• Equipment
• Capital Improvements
• Follow-on Support
7
Project Starvation
• Budget Decrement
• Reallocation of Resources Away from
Project
– Business Conditions
– “Political” Considerations
• Active w/o Activity
8
When to Terminate a Project
• Some questions to ask when considering
termination:
– Has the project been obviated by technical
advances?
– Is the output of the project still cost-effective?
– Is it time to integrate or add the project as a part
of regular operations?
– Are there better alternative uses for the funds,
time and personnel devoted to the project?
– Has a change in the environment altered the
need for the project’s output?
9
When to Terminate a Project
• Reasons projects fail:
– Project organization is not required
– Insufficient support from senior
management
– Wrong person as project manager
– Poor planning
10
The Termination Process
• Components of termination process
– Whether or not to terminate
• Goal/Objective-based
or
• Qualification factors
– If terminate:
• Carry out termination procedures
• Planned
• Orderly
• Procedures vary
11
Project Termination Decision Tree
Internal Info
Systems
External Info
Systems
Decision
Database(s)
Termination
Rules
Continue
Project
Termination
Keep
Uncertain
Sensitivity
Analysis
Decision?
Termination
Procedures
12
Project Termination Areas
Project Closeout
Organization
Financial
Purchasing
Site
Closeout Mtg
Plans
Personnel
Payables
Receivables
Budget Report
Contracts
Supplier Comm
Final Payments
Close Facilities
Dispose Equip/Mat'l
13
The Implementation Process
• Duties of the termination manager:
– Complete all remaining work
– Notification to & acceptance by client
– Complete documentation (accurately!)
– Final payments
– Redistribute assets
– Legal Review
– Files & Records
– Follow-on support
14
The Final Report - A Project History
• Historical recap
• Project “biography”
– “The Good, the Bad, and the Ugly”
• Previous documents
– Project plan
– Audit(s)
– Change orders
15
The Final Report
• Focus areas:
– Project performance
– Administrative performance
– Organizational structure
– Project and administrative teams
– Techniques of project management
16
The Final Report
• Focus area recommendations
• “Lessons learned”
– Benchmarks
– Killers
• Goal: Future project management
improvement
17