Project management - CH11

No matter how hard we try, planning is not perfect, and sometimes plans fail. Typical reasons

include:

● Corporate goals are not understood at the lower organizational levels.

● Plans encompass too much in too little time.

● Financial estimates are poor.

● Plans are based on insufficient data.

● No attempt is being made to systematize the planning process.

● Planning is performed by a planning group.

● No one knows the ultimate objective.

● No one knows the staffing requirements.

● No one knows the major milestone dates, including written reports.

● Project estimates are best guesses, and are not based on standards or history.

● Not enough time has been given for proper estimating.

● No one has bothered to see if there will be personnel available with the necessary skills.

● People are not working toward the same specifications.

● People are consistently shuffled in and out of the project with little regard for

schedule.

Stopping Projects 549

Why do these situations occur? If corporate goals are not understood, it is because corporate

executives have been negligent in providing the necessary strategic information and

feedback. If a plan fails because of extreme optimism, then the responsibility lies with both

the project and line managers for not assessing risk. Project managers should ask the line

managers if the estimates are optimistic or pessimistic, and expect an honest answer.

Erroneous financial estimates are the responsibility of the line manager. If the project fails

because of a poor definition of the requirements, then the project manager is totally at fault.

Sometimes project plans fail because simple details are forgotten or overlooked.

Examples of this might be:

● Neglecting to tell a line manager early enough that the prototype is not ready and

that rescheduling is necessary.

● Neglecting to see if the line manager can still provide additional employees for the

next two weeks because it was possible to do so six months ago.

Sometimes plans fail because the project manager “bites off more than he can chew,”

and then something happens, such as his becoming ill. Many projects have failed because

the project manager was the only one who knew what was going on and then got sick.

11.20 STOPPING PROJECTS

There are always situations in which projects have to be stopped. Nine

reasons for stopping are:

● Final achievement of the objectives

● Poor initial planning and market prognosis

● A better alternative is found

● A change in the company interest and strategy

● Allocated time is exceeded

● Budgeted costs are exceeded

● Key people leave the organization

● Personal whims of management

● Problem too complex for the resources available

Today most of the reasons why projects are not completed on time and within cost are

behavioral rather than quantitative. They include:

● Poor morale

● Poor human relations

● Poor labor productivity

● No commitment by those involved in the project

The last item appears to be the cause of the first three items in many situations.

Once the reasons for cancellation are defined, the next problem concerns how to stop

the project. Some of the ways are:

● Orderly planned termination

● The “hatchet” (withdrawal of funds and removal of personnel)

PMBOK® Guide, 5th Edition

4.6 Close Projects

550 PLANNING

● Reassignment of people to higher priority tasks

● Redirection of efforts toward different objectives

● Burying it or letting it die on the vine (i.e., not taking any official action)

There are three major problem areas to be considered in stopping projects:

● Worker morale

● Reassignment of personnel

● Adequate documentation and wrap-up

11.21 HANDLING PROJECT PHASEOUTS AND TRANSFERS

By definition, projects (and even life cycle phases) have an end point.

Closing out is a very important phase in the project life cycle, which

should follow particular disciplines and procedures with the objective of:

● Effectively bringing the project to closure according to agreed-on contractual

requirements

● Preparing for the transition of the project into the next operational phase, such as

from production to field installation, field operation, or training

● Analyzing overall project performance with regard to financial data, schedules,

and technical efforts

● Closing the project office, and transferring or selling off all resources originally

assigned to the project, including personnel

● Identifying and pursuing follow-on business

Although most project managers are completely cognizant of the necessity for proper

planning for project start-up, many project managers neglect planning for project termination.

Planning for project termination includes:

● Transferring responsibility

● Completion of project records

● Historic reports

● Postproject analysis

● Documenting results to reflect “as built” product or installation

● Acceptance by sponsor/user

● Satisfying contractual requirements

● Releasing resources

● Reassignment of project office team members

● Disposition of functional personnel

● Disposition of materials

● Closing out work orders (financial closeout)

● Preparing for financial payments

PMBOK®