Project CloseOut and Termination

Project Close-Out and
Termination
Chapter 14

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14-1


Project Termination
All activities consistent with closing out the project
 Extinction
 Addition
 Integration
 Starvation
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14-2


Termination by extinction
• The project may end because it has been successful
and achieved its goals
• The project may also be stopped because it is
unsuccessful or has been superseded
• When a decision is made to terminate a project by
extinction, the most noticeable event is that all activity
on the substance of the project ceases
Examples:
1. The product has been developed and handed over to the
client.

2. The building has been completed and accepted by the owner

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14-3


Termination by addition
• If a project is a major success, it may be
terminated by institutionalizing it as a formal part
of the parent organization
• Project personnel, property, and equipment are
often simply transferred from the dying project to
the newly born division

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

14-4


Termination by integration
• •This method of terminating projects is the most
common way of dealing with successful projects,
and the most complex
• • The property, equipment, material, personnel,
and functions of the project are reintegrated into
within the existing structure of the parent
organization

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14-5


Termination by starvation
• This type of project termination is a “slow
starvation by budget decrement”
• A form of neglect by slowly decreasing the
budget to the point that the project cannot
possibly remain viable.

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14-6


Elements of Project
Closeout Management
Harvesting
Gaining
Finishing Handing
Acceptance the Benefits
Over
the
The Work
Product
for the
Reviewing
Product
How

It All Went
Putting it All to Bed

Disbanding the Team

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14-7


Lessons Learned Meetings
Common Errors
 Misidentifying systematic errors
 Misinterpreting lessons based on events
 Failure to pass along conclusions
Meeting Guidelines
 Establish clear rules of behavior
 Describe objectively what occurred
 Fix the problem, not the blame
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14-8


Closeout Paperwork

•

Documentation

•

Legal

•

Cost

•

Personnel

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14-9


Why are Closeouts Difficult?
 Project sign off can be a de-motivator
 Constraints cause shortcuts on back-end
 Low priority activities
 Lessons learned analysis seen as bookkeeping
 Unique view of projects

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14-10


Early Warning Signs of Project Failure

• Lack of viable commercial objectives
• Lack of sufficient authority to make decisions
• New product developed for stable market
• Low priority assigned to the project by
management

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14-11


Early Termination Decision Rules


Costs exceed business benefits



Failure to meet strategic fit criteria



Deadlines continue to be missed



Technology evolves beyond the project’s scope

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14-12


The Top 10 Signs of IT Project Failure
10. Best practices and lessons learned are ignored
9. Project lacks people with appropriate skills
8. Sponsorship is lost
7. Users are resistant
6. Deadlines are unrealistic
5. Business needs change
4. Chosen technology changes
3. Project changes are poorly managed
2. Scope is ill-defined
1. Project managers don’t understand users’ needs
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14-13


Project Termination Issues

Emotional

Staff

Client

Intellectual

Internal

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External

14-14


Claims & Disputes
Two types of claims
• Ex-gratia claims
• Default by the project company
Resolved by
• Arbitration
– Binding
– Non-binding

•

Standard litigation

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14-15


Protecting Against Claims
o Consider claims as part of the project plan
o Verify stakeholders know their risks

o Keep good records throughout the life cycle
o Keep clear details of change orders
o Archive all correspondence

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14-16


Final Report Elements
 Project performance
 Administrative performance
 Organizational structure
 Team performance
 Project management techniques
 Benefits to the organization and customer

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