project management unit VIII essay

MBA 6961, Project Management 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

9. Classify the main forms of project termination. 9.1 Identify the importance of the seven key steps in formal project closeout. 9.2 Identify the influence that politics, ego, and power have on termination through starvation.

10. Discuss the challenges and components of a final project report.

Reading Assignment Chapter 14: Project Closeout and Termination, pp. 477–497

Unit Lesson Introduction Some projects terminate successfully and are easily closed, while others seem to go on forever, specifically if there are still open items or change requests. Ending projects can be very challenging. The project closeout process is not only critical to project success but also to the success of future projects. This unit will cover processes and suggest strategies to help finalize projects. Project Closeout and Termination A project can be terminated when work on the substance of the project has ceased or slowed to the point that further progress is no longer possible (Meredith & Mantel, 2012). Projects are terminated on project success or project failure. Project managers (PMs) must guide stakeholders through the closeout activities to reach successful project closure. Consider the following examples:

 After a taxpayer expenditure of $45 million, the California Department of Motor Vehicles (CDMV) cancelled a major project to improve their driver’s license and registration system.

 The English Channel, although considered the epitome of project success in terms of scope, is also viewed as a failure because of the $12 billion debt it incurred by the end of the project.

 The Denver International Airport Automatic Baggage System is seen as a significant failure due to budgeting and missed key milestones, resulting in premature termination.

 The “Big Owe” is another prominent instance of project failure. The “Big Owe” is the nickname given to the Montreal Olympic Stadium due to the massive debt incurred by the project and the excessive timeline for completion.

There are countless project successes and failures. A simple search on the Internet can yield a plethora of examples of both successful and failed projects from which we can discern valuable lessons. Every project, whether considered a success or failure, must follow certain guidelines for closeout and termination. Closeout and termination are as important as the other phases in a project’s life cycle: conceptualization, planning, and execution. Closeout and termination should be a part of the project plan and executed accordingly. Project closeout should not be undertaken as an afterthought, or simply allowed to occur by happenstance. The main goal of project termination is to cease project activities at all levels of the organization with nominal administrative disruption. Termination can be a long and tedious process. In fact, it

UNIT VIII STUDY GUIDE

Project Closeout and Termination

MBA 6961, Project Management 2

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is not uncommon for the organization to hire a termination specialist to administer the closeout process (Pinto, 2016). This allows the PM to focus on another project that may require his or her expertise. There are many conditions when a PM must decide when to terminate a project. The decision to terminate a project depends on the business context. Termination may be a result of project success, project failure, or premature abandonment. Pinto (2016) outlined four fundamental ways to close a project: extinction, addition, integration, and starvation. The approach in which a project is terminated is primarily based on a business decision and/or organizational structure present in the company. As Figure 1 depicts, formal project closure ensures that the following is accomplished:

 finishing the work,

 handing over the project,

 gaining acceptance of the project,

 harvesting the benefits,

 reviewing how it all went,

 putting it all to bed, and

 disbanding the team.

Figure 1. Project closeout elements

(Cooke-Davies, 2001)

While this is not an exhaustive list, each organization’s project management methodologies should include a checklist or procedures that cover the specific guidelines that must take place for successful project termination. Remember, project termination is contextual to the type of project and organization. Still, the list compiled by Cooke-Davies (2001) provides some of the critical areas that should be covered for successful project closeout.

Conclusion Keeping with the definition of a project, every project should have a definite completion date. However, many PMs experience challenges at the project termination stage. Several notable causes for ineffective project terminations are due to the failure to identify commonalities from project to project, the lack of resources (both financial and human resources) for closeout activities, and the erroneous assumption that once the final service or product has been delivered to the customer, there are no further responsibilities. Other reasons for unsuccessful project closure include the misuse of lessons learned only as an evaluation tool rather than as an opportunity for improvement and underestimating the importance of the project closeout process. Once the project has been completed, accepted, or terminated, a final report must be a part of the last phase. The final report should clearly document the practical realities of the project. Specifically, the final report should, at a minimum, state whether the objectives were met, if deliverables were delivered, what risks were managed successfully or unsuccessfully, how resources were used, what the final cost of the project was,

CORE CONCEPTS

If possible, the same group of people who participated in the project initiation phase should participate in the project closeout process.

MBA 6961, Project Management 3

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and what the actual time schedule was. Not only is the final report necessary in ascertaining the pros and cons of the project, it also serves as a foundation for future projects.

References Cooke-Davies, T. (2001). Project closeout management: More than simply saying good-bye and moving on.

In J. Knutson (Ed.), Project management for business professionals (pp. 200–214). Hoboken, NJ: Wiley.

Meredith, J. R., & Mantel, S. J. (2012). Project management: A managerial approach (8th ed.). Hoboken, NJ:

Wiley. Pinto, J. K. (2016). Project management: Achieving competitive advantage (4th ed.). Boston, MA: Pearson.