Project Management: A Managerial Approach Chapter 13 – Project Termination © 2006 John Wiley Overview • • • • • Methods of Project Termination Early Project Termination Project Shortcomings PM Responsibilities Project Final Report © 2006 John Wiley 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 © 2006 John Wiley Project Termination Factors Low Probability – – – Technical Objectives Commercial Viability ROI Achieved No Solution – – Engineering Design Lasting Process Intellectual Property Issues â 2006 John Wiley Project Extinction All (substantive) activity ceases • Stopped: – Successful • Met goals – Unsuccessful • Failed tests – Superceded • External event • “Extinction by Murder” – Political assassination; “projecticide” – Mergered redundancy © 2006 John Wiley Project Addition • Project becomes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” © 2006 John Wiley 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 © 2006 John Wiley Project Starvation • Budget Decrement • Reallocation of Resources Away from Project – Business Conditions Political Considerations Active w/o Activity â 2006 John Wiley 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? © 2006 John Wiley 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 © 2006 John Wiley 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 © 2006 John Wiley Project Termination Decision Tree Internal Info Systems External Info Systems Decision Database(s) Termination Rules Continue Project Termination Keep Uncertain Decision? Terminate Sensitivity Analysis Termination Procedures © 2006 John Wiley Project Termination Areas P r o je c t C lo s e o u t O r g a n iz a t io n F in a n c ia l P u r c h a s in g S ite C lo s e o u t M t g P la n s P e rs o n n e l 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 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 C lo s e F a c ilitie s D is p o s e E q u ip /M a t 'l © 2006 John Wiley 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 © 2006 John Wiley 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 © 2006 John Wiley The Final Report • Focus areas: – Project performance – Administrative performance – Organizational structure – Project and administrative teams – Techniques of project management © 2006 John Wiley The Final Report • Focus area recommendations • “Lessons learned” – Benchmarks – Killers • Goal: Future project management improvement © 2006 John Wiley Copyright 2006 John Wiley & Sons, Inc All rights reserved Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein © 2006 John Wiley ... 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 © 2006... Organizational structure – Project and administrative teams – Techniques of project management © 2006 John Wiley The Final Report • Focus area recommendations • “Lessons learned” – Benchmarks ... 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?