1. Project Management A Managerial Approach
Chapter 13
Project Termination

2. 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

3. 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The project may also be stopped because it is unsuccessful or has been superseded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

4. 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

5. 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

6. 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

7. 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

8. 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?

9. 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

10. 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 need for the project’s output?

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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 content is

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. Project Termination
Questions?

26. Project Termination
Picture Files

27. Project Termination
Figure 13-1

28. Project Termination
Figure 13-2

29. Project Termination
Table Files

30. Project Termination

31. Project Termination