Project management a managerial approach chapter 13

Project Management: A Managerial Approach Chapter 13 – Project Termination... Project Termination Conditions• A project can be said to be terminated when work on the substance of the pr

Project Management: A

Managerial Approach

Chapter 13 – Project Termination

• Methods of Project Termination

• Early Project Termination

• Project Shortcomings

• PM Responsibilities

• Project Final Report

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

Project Termination Factors

1 Low Probability

– Technical Objectives

– Commercial Viability

– ROI Achieved

2 No Solution

– Engineering Design

– Lasting Process

3 Intellectual Property Issues

Project Extinction

• All (substantive) activity ceases

• Stopped:

– Successful

• Met goals – Unsuccessful

• Failed tests – Superceded

• External event

• “Extinction by Murder”

– Political assassination; “projecticide” – Mergered redundancy

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”

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

Project Starvation

• Budget Decrement

• Reallocation of Resources Away from Project

– Business Conditions

– “Political” Considerations

• Active w/o Activity

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

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

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

Project Termination Decision Tree

Sensitivity Analysis

Internal Info

Systems External Info

Systems

Decision Database(s)

Termination Rules

Continue

Project

Termination Decision?

Termination

Uncertain Keep Terminate

Project Termination Areas

C lo s e o u t M tg

P la n s

P e rs o n n e l

O rg a n iz a tio n

P a y a b le s

R e c e iv a b le s

B u d g e t R e p o rt

F in a n c ia l

C o n tra c ts

S u p p lie r C o m m

F in a l P a y m e n ts

P u rc h a s in g

C lo s e F a c ilitie s

D is p o s e E q u ip /M a t'l

S ite

P ro je c t C lo s e o u t

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

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

The Final Report

• Focus areas:

– Project performance

– Administrative performance

– Organizational structure

– Project and administrative teams

– Techniques of project management

The Final Report

• Focus area recommendations

• “Lessons learned”

– Benchmarks

– Killers

• Goal: Future project management improvement

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