Project Management:

A Managerial Approach 4/e

By Jack R. Meredith and Samuel J. Mantel, Jr.

Published by John Wiley & Sons, Inc.

Presentation prepared by RTBM WebGroup

Project Management
A Managerial Approach

Chapter 13

Project Termination
The Varieties of Project
Termination

❚ A project can be said to be terminated

when work on the substance of the
project has ceased or slowed to the
point that further progress is no longer
possible
❚ There are four fundamentally different
ways to close out a project: extinction,
addition, integration, and starvation

Chapter 13-1
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is unsuccessful or has been superseded
❚ A special case of termination by extinction is
“termination by murder” which can range
from political assassination to accidental
projecticide

Chapter 13-2
Termination by Extinction

❚ Two important characteristics of

termination by murder are the
suddenness of project demise and the
lack of obvious signals that death is
imminent
❚ 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
Chapter 13-3
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
❚ The transition from project to division
demands a superior level of political sensitivity
for successful accomplishment

Chapter 13-4
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 distributed among the existing
elements of the parent organization

Chapter 13-5
Termination by Integration
❚ In general, the problems of integration are
inversely related to the level of experience
that the parent or client has had with:
❙ the technology being integrated
❙ the successful integration of other projects,
regardless of technology

Chapter 13-6
Termination by Integration
❚ A few of the more important aspects of the transition
from project to integrated operation that must be
considered:
❙ Personnel - where will the team go?
❙ Manufacturing - is the training complete?
❙ Accounting/Finance - have the project’s account been
closed and audited?
❙ Engineering - are all drawings complete and on file?
❙ Information Systems/Software - has the new system
been thoroughly tested?
❙ Marketing - is the sales department aware of the change?

Chapter 13-7
Termination by Starvation
❚ This type of project termination is a “slow
starvation by budget decrement”
❚ There are many reasons why senior
management does not wish to terminate an
unsuccessful or obsolete project:
❙ Politically dangerous to admit that one has
championed a failure
❙ Terminating a project that has not accomplished
its goals is an admission of failure

Chapter 13-8
When to Terminate a Project
❚ Some questions to ask when considering
termination:
❙ Has the project been obviated by technical
advances?
❙ Is the output of the project still cost-effective?
❙ Is it time to integrate or add the project as a
part of regular operations?
❙ Are there better alternative uses for the
funds, time and personnel devoted to the
project?
❙ Has a change in the environment altered the
Chapter 13-9
need for the project’s output?
When to Terminate a Project
❚ Fundamental reasons why some projects fail
to produce satisfactory answers to
termination questions:
❙ A project organization is not required
❙ Insufficient support from senior management
❙ Naming the wrong person as project manager
❙ Poor planning
❚ These and a few other reasons, are the base
cause of most project failures
❚ The specific causes derive from these
fundamental issues

Chapter 13-10
The Termination Process
❚ The termination process has two
distinct parts
❚ First is the decision whether or not
to terminate
❚ Second, if the decision is to
terminate the project, the decision
must be carried out

Chapter 13-11
 The Decision Process
❚ Decision-aiding models for the termination
decision fall into two generic categories:
❙ 1. Models that base the decision on the
degree to which the project qualifies
against a set of factors generally held to be
associated with successful projects
❙ 2. Models that base the decision on the
degree to which the project meets the goals and
objectives set for it
❚ Just as the decision criteria, constraints, weights,
and environmental data are unique to each
organization, so are the specifics of using any
decision model Chapter 13-12
The Implementation Process
❚ The actual termination can be planned
and orderly, or a simple hatchet job
❚ Special termination managers are
sometimes useful in completing the long
and involved process of shutting down a
project
❚ The primary duties of the manager in
charge of termination can be
encompassed in nine general tasks
Chapter 13-13
The Implementation Process
❚ Duties of the termination manager:
❙ Ensure completion of the work, including tasks
performed by subcontractors
❙ Notify the client of project completion and
ensure that delivery is accomplished
❙ Ensure that documentation is complete
including a terminal evaluation of the project
deliverables and preparation of the project’s
Final Report
❙ Clear for final billings and oversee preparation
of the final invoices sent to the client
Chapter 13-14
The Implementation Process
❚ Duties of the termination manager (cont.):
❙ Redistribute personnel, materials equipment, and any
other resources to the appropriate places
❙ Clear project with legal counsel or consultant
❙ Determine what records to keep
❙ Ascertain any product support requirements, decide how
each support will be delivered, and assign responsibility
❙ Oversee the closing of the project’s books

Chapter 13-15
The Implementation Process
❚ Most project managers delay the personnel
reassignment/release issue as long as
possible for three main reasons:
❙ 1. A strong reluctance to face the interpersonal
conflicts that might arise when new
assignments and layoffs are announced
❙ 2. Worry that people will lose interest and stop
work on the project as soon as it becomes
known that termination is being considered
❙ 3. Concern that team members will try to avoid
death by stretching out the work as far as
possible Chapter 13-16
The Final Report -
A Project History
❚ The final report is the history of the
project
❚ It is a chronicle of the life and times of the
project, a compendium of what went right
and what went wrong
❚ The required information is contained in
the master plan, all project audits, and
evaluations
❚ The precise organization of the report is
not of great concern; the contentChapter
is 13-17
The Final Report

❚ Several Subjects should be addressed in

the final report:
❙ Project performance
❙ Administrative performance
❙ Organizational structure
❙ Project and administrative teams
❙ Techniques of project management

Chapter 13-18
The Final Report
❚ For each element covered in the final
report, recommendations for changing
current practice should be made and
defended
❚ Equally important are comments and
recommendations about those aspects of
the project that worked unusually well
❚ The fundamental purpose of the final
report is to improve future projects
Chapter 13-19
Summary
❚ A project can be terminated in one of four
ways: by extinction, addition, integration, or
starvation
❚ Making a decision to terminate a project
before its completion is difficult, but a
number of factors can be of help in reaching
a decision
❚ Studies have shown that the factors
associated with project success are different
for different industries and the various types
of projects Chapter 13-20
Summary

❚ Most projects fail for one or more of

the following reasons:
❙ Inappropriate use of the project form of
organization
❙ Insufficient top management support
❙ Naming the wrong project manager
❙ Poor planning

Chapter 13-21
Summary
❚ Success-related factors, or any factors
management wishes, can be used in
termination decision models
❚ Special termination managers are
often used, and needed, for closing
out projects
❚ This task, consisting of eight major
duties, is a project in itself
Chapter 13-22
Summary
❚ The project Final Report incorporates the
process knowledge gained from the project
❚ In addition to preservation of project
records, the Final Report embodies the
experience from which we learn
❚ The Final Report should include: project
performance comments, administrative
performance comments, organizational
structure comments, personnel
suggestions
Chapter 13-23
Project Termination

Questions?

Chapter 13-24
Project Termination

Picture Files
Project Termination

Figure 13-1
Project Termination

Figure 13-2
Project Termination

Table Files
Project Termination
Project Termination
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