Ch. 14 – Project Audit & Closure 14–1

Major Tasks of Project Audit/Closure Evaluate if the project delivered the expected benefits to all stakeholders. Was the project managed well? Was the customer satisfied? Assess what was done wrong and what contributed to successes. Identify changes to improve the delivery of future projects. 14–2

Project Audit Step 1: Initiation and Staffing Step 2: Data Collection and Analysis Step 3: Reporting

Project Audit Report - Considerations Actual vs. planned: Does the work actually completed match the planned level of completion? Schedule & nature of changes: Are significant schedule changes likely? If so, indicate the nature of changes. Progress of specific tasks: What progress has been made on tasks that could decide the success or failure of project? Potential of failure: What is the potential for project failure or monetary loss? Lessons learned: What lessons learned from the project being audited can be applied to other projects being undertaken by organization? Data assumptions: What assumptions or limitations affect data in audit? Does the work actually completed match the planned level of completion? Are significant schedule changes likely? If so, indicate the nature of changes. What progress has been made on tasks that could decide the success or failure of project? What is the potential for project failure or monetary loss? What lessons learned from the project being audited can be applied to other projects being undertaken by organization? What assumptions or limitations affect data in audit? First audit should be done early and focused on technical issues. From then on audits may be done after major milestones (important to team). An audit at the end would be value to parent organization.

Audit Life Cycle Audit Initiation Baseline Definition Audit Database Preliminary Analysis Report Preparation Termination Audit Initiation = id. Purpose and scope of audit and determination of methodology. Team should have access to all records and reports. Baseline = performance standards Database = accumulation of information Preliminary Analysis = compares gathered information to standards and judges project performance Report preparation = preparing audit report and recommendations for improvement Termination = review of audit process and recommendations for improvement Project audit is not like a financial audit. A financial audit is limited in scope and focuses of organization’s assets while a project audit is broader in scope and either deals with whole, partial, or individual component of project.

Audit Life Cycle - clarifications Audit Initiation: identify purpose and scope of audit and determination of methodology. Team should have access to all records and reports. Baseline - performance standards Database - accumulation of information Preliminary Analysis - compares gathered information to standards and judges project performance Report preparation - preparing audit report and recommendations for improvement Termination - review of audit process and recommendations for improvement Project audit is not like a financial audit - A financial audit is limited in scope and focuses of organization’s assets while a project audit is broader in scope and either deals with whole, partial, or individual component of project. Audit Initiation = id. Purpose and scope of audit and determination of methodology. Team should have access to all records and reports. Baseline = performance standards Database = accumulation of information Preliminary Analysis = compares gathered information to standards and judges project performance Report preparation = preparing audit report and recommendations for improvement Termination = review of audit process and recommendations for improvement Project audit is not like a financial audit. A financial audit is limited in scope and focuses of organization’s assets while a project audit is broader in scope and either deals with whole, partial, or individual component of project.

Project Closure and Review Deliverables The major wrap-up task is to ensure the project is approved and accepted by the customer. Evaluation includes team, individual team members, and project manager performance. Retrospectives of lessons learned are designed to improve performance on current and future projects. FIGURE 14.1 14–7

Project Closure Types of Project Closure Normal: The most common circumstance for project closure is simply a completed project. Premature: For a few projects, the project may be completed early with some parts of the project eliminated. Perpetual: Some projects never seem to end. The major characteristic of this kind of project is constant “add-ons,” suggesting a poorly conceived project scope. Failed Project: Failed projects are usually easy to identify and easy for a review group to close down. However, every effort should be made to communicate the technical (or other) reasons for termination of the project; Changed Priority: Organizations’ priorities often change and strategy shifts directions. Projects in process may need to be altered or canceled. 14–8

Project Closure Close-out Plan: Questions to be Asked What tasks are required to close the project? Who will be responsible for these tasks? When will closure begin and end? How will the project be delivered? 14–9

Wrap-up Closure Checklist TABLE 14.1 14–10

Implementing Closedown Getting delivery acceptance from the customer. Shutting down resources and releasing to new uses. Reassigning project team members. Closing accounts and paying all bills. Evaluating the project team, project team members, and the project manager. Creating a final report. 14–11

Creating the Final Report Executive Summary Project goals met/unmet Stakeholder satisfaction with project User reactions to quality of deliverables Analysis Project mission and objective Procedures and systems used Organization resources used Recommendations Technical improvements Corrective actions Lessons Learned Reminders Retrospectives Appendix Backup data Critical information 14–12

Project Performance Evaluations Evaluation of performance is essential to encourage changes in behavior and to support individual career development and continuous improvement through organizational learning. Evaluation implies measurement against specific criteria. Reasons for Poor-Quality Project Performance Evaluations: Evaluations of individuals are left to supervisors of the team member’s home department. Typically measure team performance only on time, cost, and specifications. 14–13

Pre-Evaluation Conditions: Team Are standards and goals for measuring performance clear, challenging, and attainable? Lead to positive consequences? Are responsibilities and performance standards known by all team members? Are team rewards adequate? Management believes teams are important? Is there a career path for successful project managers Does the team have discretionary authority to manage short-term difficulties? Is there a high level of trust within the organization culture? Are there criteria beyond time, cost, and specifications? 14–14

Sample Team Evaluation and Feedback Survey TABLE 14.2 14–15

Conducting Performance Reviews - Individuals Begin by asking the individual to evaluate his or her own performance. Avoid drawing comparisons with other team members; rather, assess the individual in terms of established standards and expectations. Focus criticism on specific behaviors rather than on the individual personally. Be consistent and fair in treatment of all team members. Treat the review as one point in an ongoing process. 14–16

Project Performance Evaluation: Individual Performance Assessment Responsibilities: In Functional Organizations: The area manager may solicit the project manager’s opinion of the individual’s performance on a specific project. Balanced matrix: the project manager and the area manager jointly evaluate an individual’s performance. Project matrix and project organizations: the project manager is responsible for appraising individual performance. In some matrix organizations, project managers conduct the performance reviews, while area managers are responsible for pay reviews. In other cases, performance reviews are part of the project closure process, and pay reviews are the primary objective of the annual performance appraisal. Other organizations avoid this dilemma by allocating only group rewards for project work and providing annual awards for individual performance. 14–17

Individual Performance Assessment Multirater appraisal (“360-degree feedback) Involves soliciting feedback concerning team members’ performance from all of the people that their work affects. Project managers, area managers, peers, subordinates, and customers. 14–18

Retrospectives Lessons Learned Goals of Retrospectives An analysis carried out during and shortly after the project life cycle to capture positive and negative project learning—“what worked and what didn’t?” Goals of Retrospectives To reuse learned solutions To stop repetitive mistakes A retrospective is a methodology that analyzes a past project event to determine what worked and what didn’t, develops lessons learned, and creates an action plan that ensures lessons learned are used to improve management of future projects. 14–19

Retrospectives (cont’d) Barriers to Organizational Learning Lack of post-project time for developing lessons No post-project direction or support for teams Lessons become blame sessions Lessons are not applied in other locations Organizational culture does not recognize value of learning 14–20

The Value of Retrospective Analyses Making Retrospectives Effective: Use an independent facilitator to guide the project team through the analysis project activities. Include a minimum of three in-process learning gates (major milestones) during the life project cycle. Designate a team member as owner for each point in the retrospective. Develop an easy-to-use learning repository to ensure future utilization of retrospective lessons. Mandate use of retrospectives as part of the normal process for all projects. 14–21

Characteristics of a Facilitator No direct involvement or direct interest in the project. Perceived as impartial and fair Respect of senior management and other project stakeholders. Willingness to listen. Independence and authority to report results without fear of recriminations from special interests. Perceived as having the best interests of the organization in making decisions. Broad-based experience in the organization or industry. 14–22

Initiating the Retrospective Review Have automatic times or points when reviews will take place. Avoid surprises. Conduct reviews carefully and with sensitivity Review staff must independent from the project. Review reports need to be used and accessible. Reviews support organizational culture Project closures should be planned and orderly. Certain “core conditions” must be in place to support team and individual evaluation. Conduct individual and team evaluations separate from pay or merit reviews. 14–23

The Retrospectives Process FIGURE 14.2 14–24