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Project Termination Types of

terminations How and why

projects terminate Typical

termination activities

Need for a project history

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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

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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.

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Most Common Reasons Projects Terminate 1. Low probability of technical/commercial

success 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

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Decision Structure for a Termination Decision, Figure 13-1

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Four Varieties of Project Termination 1. “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

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Four Varieties of Termination (cont’d) 2. “Termination by addition”

The project becomes a formal part of the parent organization

People, material, facilities transition The example of Nucor

3. “Termination by integration” Project assets are distributed to and

absorbed by the parent

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Four Varieties of Termination (cont’d) 4. “Termination by starvation”

Withdrawal of “life support” Can save “face,” avoid

embarrassment, evade admission of defeat

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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

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Termination Activities (cont’d) 3. Accounting and Finance

Accounts closed and audited Resources transferred

4. Engineering Drawings complete/on file Change procedures clarified

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Termination Activities (cont’d) 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

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A Design for Project Termination, Figure 13-2

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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

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Contents of a Project History 1. Project Performance

What was achieved; successes, challenges, failures

2. Administrative Performance Reports, meetings, project review

procedures; HR, financial processes 3. Organization Structure

How structure evolved, how it aided/impeded progress

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Contents of a Project History (cont’d) 4. Project and Administrative Teams

Performance of the project team, recommendations

5. Project Management Techniques Planning, budgeting, scheduling, risk

management, etc.: what worked, what didn’t

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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