1. Chapter 13
Project Termination

2. 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.

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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!)

13. 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

14. 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

15. 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.

16. 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

17. 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

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

19. 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