1 Project Termination Types of terminations How and why projects terminate Typical termination activities Need for a project history
Dec 19, 2015
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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 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
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Decision Structure for a Termination Decision
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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
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Four Varieties of Termination (cont’d) “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
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Four Varieties of Termination (cont’d) “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: 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
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Termination Activities (cont’d) Accounting and Finance
Accounts closed and audited Resources transferred
Engineering Drawings complete/on file Change procedures clarified
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Termination Activities (cont’d) Information Systems
Configuration and documentation in place Systems integrated
Marketing Sales and promotion efforts in line
Administrative All organizations aware of change
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A Design for Project Termination
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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 Project Performance
What was achieved; successes, challenges, failures Administrative Performance
Reports, meetings, project review procedures; HR, financial processes
Organization Structure How structure evolved, how it aided/
impeded progress
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Contents of a Project History (cont’d) Project and Administrative Teams
Performance of the project team, recommendations
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