23 project termination.ppt

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Project Termination Types of terminations How and why projects

terminate Typical termination

activities Need for a project

history

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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

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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.

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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

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Decision Structure for a Termination Decision

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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

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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

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Four Varieties of Termination (cont’d) “Termination by starvation”

Withdrawal of “life support” Can save “face,” avoid embarrassment, evade

admission of defeat

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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

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Termination Activities (cont’d) Accounting and Finance

Accounts closed and audited Resources transferred

Engineering Drawings complete/on file Change procedures clarified

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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

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A Design for Project Termination

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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

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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

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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

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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