Project Termination

Types of terminations How and why projects terminate Typical termination activities Need for a project history

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

2

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.

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

Decision Structure for a Termination Decision

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

Four Varieties of Termination (contd)

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

7

Four Varieties of Termination (contd)

Termination by starvation

Withdrawal of life support Can save face, avoid embarrassment, evade admission of defeat

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

9

Termination Activities (contd)

Accounting and Finance

Accounts closed and audited Resources transferred Drawings complete/on file Change procedures clarified

Engineering

10

Termination Activities (contd)

Information Systems

Configuration and documentation in place Systems integrated Sales and promotion efforts in line

Marketing

Administrative

All organizations aware of change

11

A Design for Project Termination

12

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

13

Contents of a Project History

Project Performance

What was achieved; successes, challenges, failures Reports, meetings, project review procedures; HR, financial processes How structure evolved, how it aided/ impeded progress

Administrative Performance

Organization Structure

14

Contents of a Project History (contd)

Project and Administrative Teams

Performance of the project team, recommendations Planning, budgeting, scheduling, risk management, etc.: what worked, what didnt

Project Management Techniques

15

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
16