1. Project Termination Types of terminations
How and why projects terminate
Typical termination activities
Need for a project history

2. All Things Come to an End . . .
Termination rarely has much impact on technical success or failure . . .
But a huge impact on other areas
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

3. When Do Projects Terminate?
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.

4. Most Common Reasons Projects Terminate
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

5. Decision Structure for a Termination Decision

6. Four Varieties of Project Termination
“Termination by extinction”
Project has successfully completed, or it has failed
Natural passing, or “termination by murder”
Either way, project substance ceases, but much work needs to be done
Administrative
Organizational

7. Four Varieties of Termination (cont’d)
“Termination by addition”
The project becomes a formal part of the parent organization
People, material, facilities transition
The example of Nucor
“Termination by integration”
Project assets are distributed to and absorbed by the parent

8. Four Varieties of Termination (cont’d)
“Termination by starvation”
Withdrawal of “life support”
Can save “face,” avoid embarrassment, evade admission of defeat

9. Typical Termination Activities
In general, there are seven categories of termination tasks. Examples of activities:
Personnel
Dealing with “trauma of termination”
Finding “homes” for the team
Who will “close the doors?”
Operations/Logistics/Manufacturing
Rethinking systems
Provisions for training, maintenance, spares

10. Termination Activities (cont’d)
Accounting and Finance
Accounts closed and audited
Resources transferred
Engineering
Drawings complete/on file
Change procedures clarified

11. Termination Activities (cont’d)
Information Systems
Configuration and documentation in place
Systems integrated
Marketing
Sales and promotion efforts in line
Administrative
All organizations aware of change

12. A Design for Project Termination

13. Project History
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

14. Contents of a Project History
Project Performance
What was achieved; successes, challenges, failures
Administrative Performance
Reports, meetings, project review procedures; HR, financial processes
Organization Structure
How structure evolved, how it aided/ impeded progress

15. Contents of a Project History (cont’d)
Project and Administrative Teams
Performance of the project team, recommendations
Project Management Techniques
Planning, budgeting, scheduling, risk management, etc.: what worked, what didn’t

16. Challenges to Meaningful Project Histories
Since the project history has so much potential benefit, why is it often done poorly, or not at all?
Possible reasons
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