Project CloseOut and Termination

Project Close-Out and Termination Chapter 14 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-1 Project Termination All activities consistent with closing out the project  Extinction  Addition  Integration  Starvation Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-2 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it has been successful and achieved its goals • The project may also be stopped because it is unsuccessful or has been superseded • When a decision is made to terminate a project by extinction, the most noticeable event is that all activity on the substance of the project ceases Examples: The product has been developed and handed over to the client The building has been completed and accepted by the owner Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-3 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 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-4 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 reintegrated into within the existing structure of the parent organization Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-5 Termination by starvation • This type of project termination is a “slow starvation by budget decrement” • A form of neglect by slowly decreasing the budget to the point that the project cannot possibly remain viable Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-6 Elements of Project Closeout Management Harvesting Gaining Finishing Handing Acceptance the Benefits Over the The Work Product for the Reviewing Product How It All Went Putting it All to Bed Disbanding the Team Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-7 Lessons Learned Meetings Common Errors  Misidentifying systematic errors  Misinterpreting lessons based on events  Failure to pass along conclusions Meeting Guidelines  Establish clear rules of behavior  Describe objectively what occurred  Fix the problem, not the blame Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-8 Closeout Paperwork • Documentation • Legal • Cost • Personnel Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-9 Why are Closeouts Difficult?  Project sign off can be a de-motivator  Constraints cause shortcuts on back-end  Low priority activities  Lessons learned analysis seen as bookkeeping  Unique view of projects Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-10 Early Warning Signs of Project Failure • Lack of viable commercial objectives • Lack of sufficient authority to make decisions • New product developed for stable market • Low priority assigned to the project by management Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-11 Early Termination Decision Rules  Costs exceed business benefits  Failure to meet strategic fit criteria  Deadlines continue to be missed  Technology evolves beyond the project’s scope Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-12 The Top 10 Signs of IT Project Failure 10 Best practices and lessons learned are ignored Project lacks people with appropriate skills Sponsorship is lost Users are resistant Deadlines are unrealistic Business needs change Chosen technology changes Project changes are poorly managed Scope is ill-defined Project managers don’t understand users’ needs Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-13 Project Termination Issues Emotional Staff Client Intellectual Internal Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall External 14-14 Claims & Disputes Two types of claims • Ex-gratia claims • Default by the project company Resolved by • Arbitration Binding Non-binding Standard litigation Copyright â 2010 Pearson Education, Inc Publishing as Prentice Hall 14-15 Protecting Against Claims o Consider claims as part of the project plan o Verify stakeholders know their risks o Keep good records throughout the life cycle o Keep clear details of change orders o Archive all correspondence Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-16 Final Report Elements  Project performance  Administrative performance  Organizational structure  Team performance  Project management techniques  Benefits to the organization and customer Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-17 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-18 ... changes Project changes are poorly managed Scope is ill-defined Project managers don’t understand users’ needs Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14-13 Project Termination. .. made to terminate a project by extinction, the most noticeable event is that all activity on the substance of the project ceases Examples: The product has been developed and handed over to the... Publishing as Prentice Hall 14-4 Termination by integration • •This method of terminating projects is the most common way of dealing with successful projects, and the most complex • • The property,