Transcript Project Management A Managerial Approach Chapter 13 Project Termination The Varieties of Project Termination A project can be said to be terminated when work on the substance.

Project Management
A Managerial Approach
Chapter 13
Project Termination
The Varieties of Project
Termination
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
Termination by Extinction
 The project may end because it has been
successful and achieved its goals
 The project may also be stopped because it is
unsuccessful or has been superseded
 A special case of termination by extinction is
“termination by murder” which can range from
political assassination to accidental projecticide
Termination by Extinction
Two important characteristics of termination
by murder are the suddenness of project
demise and the lack of obvious signals that
death is imminent
When a decision is made to terminate a
project by extinction, the most noticeable
event is that all activity on the substance of
the project ceases
Termination by Addition
If a project is a major success, it may be
terminated by institutionalizing it as a formal
part of the parent organization
Project personnel, property, and equipment are
often simply transferred from the dying project
to the newly born division
The transition from project to division demands
a superior level of political sensitivity for
successful accomplishment
Termination by Integration
This method of terminating projects is
the most common way of dealing with
successful projects, and the most
complex
The property, equipment, material,
personnel, and functions of the project
are distributed among the existing
elements of the parent organization
Termination by Integration
In general, the problems of integration are
inversely related to the level of experience
that the parent or client has had with:
the technology being integrated
the successful integration of other projects,
regardless of technology
Termination by Integration
A few of the more important aspects of the
transition from project to integrated operation that
must be considered:
Personnel - where will the team go?
Manufacturing - is the training complete?
Accounting/Finance - have the project’s account been
closed and audited?
Engineering - are all drawings complete and on file?
Information Systems/Software - has the new system
been thoroughly tested?
Marketing - is the sales department aware of the
change?
Termination by Starvation
This type of project termination is a “slow
starvation by budget decrement”
There are many reasons why senior management
does not wish to terminate an unsuccessful or
obsolete project:
Politically dangerous to admit that one has championed
a failure
Terminating a project that has not accomplished its
goals is an admission of failure
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?
When to Terminate a Project
Fundamental reasons why some projects fail
to produce satisfactory answers to
termination questions:
A project organization is not required
Insufficient support from senior management
Naming the wrong person as project manager
Poor planning
These and a few other reasons, are the base
cause of most project failures
The specific causes derive from these
fundamental issues
The Termination Process
The termination process has two
distinct parts
First is the decision whether or not to
terminate
Second, if the decision is to terminate
the project, the decision must be
carried out
The Decision Process
Decision-aiding models for the termination decision
fall into two generic categories:
1. Models that base the decision on the
degree to which the project qualifies
against a set of factors generally held to be
associated with successful projects
2. Models that base the decision on the
degree to which the project meets the goals and
objectives set for it
Just as the decision criteria, constraints, weights,
and environmental data are unique to each
organization, so are the specifics of using any
decision model
The Implementation Process
The actual termination can be planned and
orderly, or a simple hatchet job
Special termination managers are
sometimes useful in completing the long
and involved process of shutting down a
project
The primary duties of the manager in
charge of termination can be encompassed
in nine general tasks
The Implementation Process
Duties of the termination manager:
Ensure completion of the work, including tasks
performed by subcontractors
Notify the client of project completion and
ensure that delivery is accomplished
Ensure that documentation is complete
including a terminal evaluation of the project
deliverables and preparation of the project’s
Final Report
Clear for final billings and oversee preparation
of the final invoices sent to the client
The Implementation Process
Duties of the termination manager (cont.):
Redistribute personnel, materials equipment,
and any other resources to the appropriate
places
Clear project with legal counsel or consultant
Determine what records to keep
Ascertain any product support requirements,
decide how each support will be delivered, and
assign responsibility
Oversee the closing of the project’s books
The Implementation Process
Most project managers delay the personnel
reassignment/release issue as long as possible for
three main reasons:
1. A strong reluctance to face the interpersonal
conflicts that might arise when new assignments
and layoffs are announced
2. Worry that people will lose interest and stop
work on the project as soon as it becomes
known that termination is being considered
3. Concern that team members will try to avoid
death by stretching out the work as far as
possible
The Final Report A Project History
The final report is the history of the project
It is a chronicle of the life and times of the
project, a compendium of what went right and
what went wrong
The required information is contained in the
master plan, all project audits, and evaluations
The precise organization of the report is not of
great concern; the content is
The Final Report
Several Subjects should be addressed in the
final report:
Project performance
Administrative performance
Organizational structure
Project and administrative teams
Techniques of project management
The Final Report
For each element covered in the final report,
recommendations for changing current
practice should be made and defended
Equally important are comments and
recommendations about those aspects of the
project that worked unusually well
The fundamental purpose of the final report
is to improve future projects
Summary
A project can be terminated in one of four
ways: by extinction, addition, integration, or
starvation
Making a decision to terminate a project
before its completion is difficult, but a number
of factors can be of help in reaching a decision
Studies have shown that the factors associated
with project success are different for different
industries and the various types of projects
Summary
Most projects fail for one or more of the
following reasons:
Inappropriate use of the project form of
organization
Insufficient top management support
Naming the wrong project manager
Poor planning
Summary
Success-related factors, or any factors
management wishes, can be used in
termination decision models
Special termination managers are often
used, and needed, for closing out projects
This task, consisting of eight major duties,
is a project in itself
Summary
The project Final Report incorporates the
process knowledge gained from the project
In addition to preservation of project records,
the Final Report embodies the experience from
which we learn
The Final Report should include: project
performance comments, administrative
performance comments, organizational
structure comments, personnel suggestions
Project Termination
Questions?
Project Termination
Picture Files
Project Termination
Figure 13-1
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Figure 13-2
Project Termination
Table Files
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Project Termination