1. Prepared by Scott M. Shafer, Updated by William E. Matthews and Thomas G. Roberts, William Patterson University Copyright 2007 John Wiley & Sons, Inc.5-1 Mantel, Meredith, Shafer, and Sutton Copyright  John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein. 8 – Evaluating and Terminating the Project

2.  Appraises the progress and performance of the project relative to (a) the goals and objectives set for it during the selection process and (b) the initial or revised plan.  Projects should be evaluated at key points in the project life cycle.  Purpose is to improve process of carrying out future projects. Copyright 2007 John Wiley & Sons, Inc.8-2

3.  Original criteria for selecting and funding project  Success to date  Business/Direct Success such as the level of commercial success for external projects and reduced throughput time for internal projects  Future Potential  Contribution to Organization’s Goals  Contribution to Team Member Objectives Copyright 2007 John Wiley & Sons, Inc.8-3

4.  Measuring performance against planned budgets and schedules relatively straightforward  Measurement of actual expenditure and earned values more complicated Copyright 2007 John Wiley & Sons, Inc.8-4

5.  The timing of the audit depends on the purpose  An audit can be conducted at three levels: general detailed technical Copyright 2007 John Wiley & Sons, Inc.8-5

6.  Familiarize audit team with requirements of project  Conduct audit on site  Write up audit report  Distribute report Copyright 2007 John Wiley & Sons, Inc.8-6

7.  Audit team must Have free access to anyone with knowledge of the project Make sure the project team is aware of the audit Avoid judgmental comments Understand the politics of project team Confirm all information ( wherever possible) Understand that project team members rarely trust auditors Copyright 2007 John Wiley & Sons, Inc.8-7

8.  Introduction description of project and its goals  Current Status comparison of work completed and planned  Future Project Status conclusions regarding project progress recommendations for changes for subsequent projects Copyright 2007 John Wiley & Sons, Inc.8-8

9.  Critical Management Issues issues senior management should monitor  Risk Analysis and Risk Management potential for project failure and monetary loss  Final Comments caveats, assumptions, limitations Copyright 2007 John Wiley & Sons, Inc.8-9

10.  Sunk Cost - The extent to which the organization is willing to invest the additional time and cost required to complete the project given the investment already committed  The degree to which the project qualifies against a set of factors associated with success or failure Copyright 2007 John Wiley & Sons, Inc.8-10

11.  Project Extinction project activity suddenly stops or has successfully completed or has a high expectation for failure  Termination by addition when an in-house project is successfully and is institutionalized as a new formal part of the organization  Termination by integration the output of the project becomes a standard part of the operating system of the sponsoring firm or the cli ent  Termination by starvation occurs when it is impolitic to terminate a project but it’s budget can be squeezed, as budgets always are, until it is a project in name only Copyright 2007 John Wiley & Sons, Inc.8-11

12.  Decision should be made by a broad based committee of senior managers  Termination process should be specified in project plan  A termination manager should be appointed Copyright 2007 John Wiley & Sons, Inc.8-12

13. Copyright 2007 John Wiley & Sons, Inc.8-13

14.  Project Performance what was achieved and reasons for resulting performance  Administrative Performance review of how well administrative practices worked  Organizational Structure identify modifications to help future projects  Project Management Techniques recommendations for improvements in future projects Copyright 2007 John Wiley & Sons, Inc.8-14 Any ?s