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Project Termination Types of terminations How and why projects terminate Typical termination activities Need for a project history All Things Come to an End . . . – PowerPoint PPT presentation

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Title: Project%20Termination

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

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

Most Common Reasons Projects Terminate
  • 1. Low probability of technical/commercial
  • 2. Low profitability/ROI/market potential
  • 3. Damaging cost growth
  • 4. Change in competitive factors/market needs
  • 5. Unresolvable technical problems
  • 6. Higher priority of competing projects
  • 7. Schedule delays
  • Source Dean, 1968

Decision Structure for a Termination Decision,
Figure 13-1
Four Varieties of Project Termination
  • 1. Termination by extinction
  • Project has successfully completed, or it has
  • 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)
  • 2. Termination by addition
  • The project becomes a formal part of the parent
  • People, material, facilities transition
  • The example of Nucor
  • 3. Termination by integration
  • Project assets are distributed to and absorbed by
    the parent

Four Varieties of Termination (contd)
  • 4. 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
  • 1. Personnel
  • Dealing with trauma of termination
  • Finding homes for the team
  • Who will close the doors?
  • 2. Operations/Logistics/Manufacturing
  • Rethinking systems
  • Provisions for training, maintenance, spares

Termination Activities (contd)
  • 3. Accounting and Finance
  • Accounts closed and audited
  • Resources transferred
  • 4. Engineering
  • Drawings complete/on file
  • Change procedures clarified

Termination Activities (contd)
  • 5. Information Systems
  • Configuration and documentation in place
  • Systems integrated
  • 6. Marketing
  • Sales and promotion efforts in line
  • 7. Administrative
  • All organizations aware of change

A Design for Project Termination, Figure 13-2
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

Contents of a Project History
  • 1. Project Performance
  • What was achieved successes, challenges,
  • 2. Administrative Performance
  • Reports, meetings, project review procedures HR,
    financial processes
  • 3. Organization Structure
  • How structure evolved, how it aided/ impeded

Contents of a Project History (contd)
  • 4. Project and Administrative Teams
  • Performance of the project team, recommendations
  • 5. Project Management Techniques
  • Planning, budgeting, scheduling, risk management,
    etc. what worked, what didnt

Challenges to Meaningful Project Histories
  • Since the project history has so much potential
    benefit, why is it often done poorly, or not at
  • 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