Transcript Project Termination

Project Termination
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Types of terminations
How and why projects
terminate
Typical termination
activities
Need for a project
history
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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
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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.
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Most Common Reasons Projects
Terminate
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Low probability of technical/commercial success
Low profitability/ROI/market potential
Damaging cost growth
Change in competitive factors/market needs
Unresolvable technical problems
Higher priority of competing projects
Schedule delays
Source: Dean, 1968
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Decision Structure for a Termination
Decision
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Four Varieties of Project
Termination
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“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
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Four Varieties of Termination
(cont’d)
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“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
“Termination by integration”
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Project assets are distributed to and absorbed by
the parent
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Four Varieties of Termination
(cont’d)
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“Termination by starvation”
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Withdrawal of “life support”
Can save “face,” avoid embarrassment, evade
admission of defeat
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Typical Termination Activities
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In general, there are seven categories of
termination tasks. Examples of activities:
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Personnel
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Dealing with “trauma of termination”
Finding “homes” for the team
Who will “close the doors?”
Operations/Logistics/Manufacturing
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Rethinking systems
Provisions for training, maintenance, spares
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Termination Activities (cont’d)
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Accounting and Finance
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Accounts closed and audited
Resources transferred
Engineering
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Drawings complete/on file
Change procedures clarified
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Termination Activities (cont’d)
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Information Systems
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Marketing
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Configuration and documentation in place
Systems integrated
Sales and promotion efforts in line
Administrative
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All organizations aware of change
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A Design for Project Termination
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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
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Contents of a Project History
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Project Performance
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Administrative Performance
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What was achieved; successes, challenges, failures
Reports, meetings, project review procedures; HR,
financial processes
Organization Structure
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How structure evolved, how it aided/
impeded progress
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Contents of a Project History
(cont’d)
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Project and Administrative Teams
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Performance of the project team,
recommendations
Project Management Techniques
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Planning, budgeting, scheduling, risk
management, etc.: what worked, what didn’t
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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
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