Transcript Business IX

Chapter 14
1
1. Distinguish among the four main forms of
project termination.
2. Recognize the seven key steps in formal
project closeout.
3. Understand key reasons for early
termination of projects.
4. Know the challenges and components of a
final project report.
2



Conceptualization - the development of the initial goal and
technical specifications.
Planning – all detailed specifications, schedules, schematics,
and plans are developed.
Execution – the actual “work” of the project is performed.
Termination – project is transferred to the
customer, resources reassigned, project is
closed out.
Man Hours

Conceptualization
Planning
Execution
Termination
3
Client Interest
Project Stake $
Resources
Creativity
Uncertainty
Conceptualization
Planning
Execution
Termination
4
------------------
Quadruple
Client
Budget
Acceptance
Success
Schedule


Performance

Have we been
successful in
each of these?
We have reached
a natural
termination point
Let’s start the
pizza party!
5
Project Termination - all activities consistent with
closing out the project

Termination by extinction

Termination by addition

Termination by integration

Termination by starvation
◦ Stopped due to either a successful/unsuccessful
conclusion
◦ Budget audited, resources re-assigned
◦ Becomes a part of a formal business process
◦ Resources are reabsorbed into the organization
◦ Remove resources available to the point where no work
is occurring
Not all projects are stopped because they have achieved the
original intended goals.
6
• Archive project documentation and
• Formal announcement of project
closure
Harvesting
contracts
Handing
mayGaining
occur with some
team
Finishing • Uneasiness
the budgets
Benefits
• Close cost accounts
and
audit
Acceptance
Over the
members
The Work
• All personnel and services paid
• VerifyProduct
team members the
have received a
• Stakeholders signfor
off on the project Reviewing
positive “psychosocial”
outcome
Product
How
It All Went
Putting it All to Bed
• The
organization
tooutcome
realize
Client
accepts
the
project
Project
details
• A formal
arebegins
cleaned
transfer
up
of ownership
a
positive
outcome
from
the
• Team
should
brainstorm
in project
members
• Provide
lose
training,
focus
drawings, etc
• Perform lessons
learned
analysis
•advance
Develop
an
assessment
systemproject item
would
the
Project on
manager
• “Why
May
need
musttokeep
prove
customer
not
accept
thisBuild,
project?”
interest high
works
(BOTOperate, Transfer)
Disbanding
the
Team
• Use of “final”
• May
checklist
be a project
may help
within itself
Time
7











Include closeout in the WBS and the schedule
Use a closeout checklist
Have a detailed closeout plan
Preserve the team identity and continue with weekly status
meetings
Provide performance feedback
Reward team members
Take a trip for feedback and formal closeout with remote
team
Create a final project report to communicate to
stakeholders
Schedule a formal closeout review meeting or project audit
Document lessons learned
Celebrate success
8
Meeting Guidelines
 Establish clear rules of behavior to promote
interaction
 Describe objectively what occurred
 Fix the problem, do not blame
Common Errors
 Misidentifying systematic errors as special cause
 Misinterpreting lessons and wrongly perceiving
the source of the problem
 Failure to pass along lessons learned conclusions
and repeating the same failures
9
10

Project sign off can stop future “final” work

Multi-tasking on projects cause shortcuts on project
closure activities

Close out activities are given a low priority

Lessons learned analysis seen as a “check the box”
process

Projects viewed as unique create the perception that
lessons learned cannot be transferred from project to
project
11
Emotional
Staff
Client
Intellectual
Internal
External
12
Emotional
Staff
Client
Fear of no future work
Change in attitude
Loss of interest in remaining tasks
Loss of interest in project
Loss of project-derived motivation
Change in personnel dealing
with project
Loss of team identity
Unavailability of key personnel
Selection of personnel to be
reassigned
Diversion of effort
13
Intellectual
Internal
External
Identification of remaining
deliverables
Agreement with client on remaining
deliverables
Certification needs
Agreement with suppliers on outstanding
commitments
Identification of outstanding
commitments
Communicating closure
Control of changes to project
Closing down facilities
Closure of work orders and work
packages
Disposal of unused material
14
What makes a project a candidate for early
termination? A major change in
1. Image, political, and cost factors
2. Task-team issues
3. Sponsorship
4. Economics
5. Business, political, technological environment
6. User demand
15




When costs exceed business benefits
When the project no longer meets strategic fit
criteria
Deadlines are continually missed
Technology evolves beyond the project’s
scope
16
10.
9.
8.
7.
6.
5.
4.
3.
2.
1.
Best practices and lessons learned are ignored
Project lacks people with appropriate skills
Sponsorship is lost
Customers are resistant
Deadlines are unrealistic
Business needs change
Chosen technology changes
Project changes are poorly managed
Scope is ill-defined
Project managers don’t understand users’ needs
17

Two types of claims
◦ Ex-gratia claims
◦ Default by the project company
Resolved by
 Arbitration
◦ Binding
◦ Non-binding

Standard litigation
18
o
Consider claims as part of the project plan
o
Verify stakeholders know their risks
o
Keep good records throughout the life cycle
o
Keep clear details of change orders
o
Archive all correspondence
19
The administrative record of the completed
project.
A valuable document that should be used as a
lessons learned for future projects.
Elements of the report should include +/Δ on:
 Project performance
 Administrative (systems) performance
 Organizational structure
 Team performance
 Project management techniques
 Benefits to the organization and customer
20
1.
2.
3.
4.
5.
Why is the decision to terminate a project often as much an
emotional one as an intellectual one?
Comment on the different methods for project termination. How
have you seen an example of one of these methods, through either
your school or work experience?
Why do so many projects end up terminated as a result of
“termination through starvation?” Discuss the role that ego and
power and politics play in this form of termination.
Consider the case on the Boeing Sonic Cruiser from the
introductory vignette. Take either the position that this
represented a good or bad business decision by Boeing. Argue
your case.
Why do “lessons learned” programs often fail to capture
meaningful information that could help guide future projects?
21
6.
7.
8.
Comment on the following statement: “In deciding on whether or
not to kill a project, it is critical to continually monitor the
environment for signs it may no longer be viable.”
Refer to the box on Research in Brief. In your opinion, why is it so
difficult to bring IT projects to successful completion? In other
words, identify some reasons why their cancellation rate is 40%.
Imagine you are a project team member on a project that has been
missing deadlines, not producing the technological results hoped
for, and is a source of problems between your team and the
customer. You have just been informed that the project is being
cancelled. In what ways is this good news and how would you
view it as bad news?
22