Chapter 13 Project Termination

Note on the book vs. the PMBOK The book seems very focused on an academic, empirical study of why and how projects terminate. What might you see in the real world? The PMBOK is more instructive and normative This is how you should close a project.

Closing vs. Termination Termination is when a project is actually done. (Nothing else will be done.) Closing is the final phase Closing begins when the deliverables have been delivered But there is still stuff left to do! Closing continues until all reports are in

The Varieties of Project Termination Termination by extinction Termination by addition Termination by integration Termination by starvation

Termination by Extinction Extinction occurs in any scenario where the project goes away Successful Unsuccessful Changes in environment Take too long Murder When work on a project stops, some organizational work continues

Termination by Addition Applies to an in-house project When the project is successful, it is institutionalized While the project goes away, project personnel and assets are transferred to the new business

Termination by Integration The most common way to terminate a project, especially for internal projects The project comes into the business It is absorbed into the existing structure That structure absorbs the assets of the project

Termination by Starvation Termination by starvation involves greatly reducing the budget of a project Used when it is politically dangerous to cancel a project Bad manners to enquire the status of the project

Project Management Process Groups Knowledge Areas Project Management Process Groups Initiating Planning Executing Monitoring & Controlling Closing Integration Develop Project Charter Develop Project Management Plan Direct & Manage Project Execution Monitor & Control Project Work Perform Integrated Change Control Close Project or Phase Scope Collect Requirements Define Scope Create WBS Verify Scope Control Scope Time Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Control Schedule Cost Estimate Cost Determine Budget Control Costs Quality Plan Quality Perform Quality Assurance Perform Quality Control HR Develop HR Plan Acquire Project Team Develop Project Team Manage Project Team Communications Identify Communications Plan Communications Distribute Information Manage Stakeholder Expectations Report Performance Risk Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Monitor & Control Risks Procurement Plan Procurements Conduct Procurements Administer Procurements Close Procurements

The Termination Process Must first decide to terminate If the decision is to terminate the project, the decision must be carried out Easy decision if scope/deliverables are clearly defined and met successfully

The Decision Process Sunk costs are often not relevant to the decision about terminating a project Primary concern for project continuance or termination is whether or not the organization is willing to invest the estimated time and cost required to complete the project Can use ETC to guide this decision

Good Monitoring & Controlling lead to good Closing/Term’n decision Earned value analysis is performed continually throughout the project If you know how far on or off track you are, you can make the decision to terminate unsuccessfully or show that there is a light at the end of the tunnel Worse if you don’t monitor as you go. (We should have stopped work on this weeks ago!)

Good Monitoring & Controlling lead to good Closing/Term’n decision (side note not from book, related to Control and Closing) Gold Plating refers to the addition of any feature not considered in the original scope plan (PMBOK) considered bad Project Management. does not prevent new features from being added to the project. Just says that they must follow change order process

Good Initiation & Planning lead to smooth Closing and Termination Clearly defining the Scope/Deliverables from the outset makes it clear when execution is done Good planning and control of scope change keeps this definition up-to-date Plan ahead to gain acceptance from the client and/or sponsor

Good Initiation & Planning lead to smooth Closing and Termination To most cleanly close a successful project use an acceptance form Deliverables and success criteria are defined in the original plan and agreed to by client Any scope changes have been documented and approved according to a pre-agreed process Present client with a checklist of deliverables and success criteria, and get their signature! Final checkbox: Project is accepted by client.

Good Initiation & Planning lead to smooth Closing and Termination Contingency planning for failure, though seemingly negative can also be helpful Define what would be grounds for early termination Define who gets paid what in the event of an early termination

Things to Do at closing (or closeout) Ensure tasks are completed Notify the client Finish the paperwork Send out final invoices to the client Redistribute resources Clear with legal counsel Determine what records to keep Assign support Close the project books

The Final Report—A Project History Project performance Administrative performance Organizational structure Project and administrative teams Techniques of project management

The Final Report—A Project History Earned Value Analysis chart now provides a numerical project history Budgeted vs. Actuals should be communicated back to estimators to improve their estimation process over time. “Lessons Learned” should actually be learned and written down to be remembered