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Project Management A Managerial Approach Chapter 13 Project Termination.

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Presentation on theme: "Project Management A Managerial Approach Chapter 13 Project Termination."— Presentation transcript:

1 Project Management A Managerial Approach Chapter 13 Project Termination

2 The Varieties of Project Termination zA 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 zThere are four fundamentally different ways to close out a project: extinction, addition, integration, and starvation

3 Termination by Extinction zThe project may end because it has been successful and achieved its goals zThe project may also be stopped because it is unsuccessful or has been superseded zA special case of termination by extinction is “termination by murder” which can range from political assassination to accidental projecticide

4 Termination by Extinction zTwo important characteristics of termination by murder are the suddenness of project demise and the lack of obvious signals that death is imminent zWhen 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 zIf a project is a major success, it may be terminated by institutionalizing it as a formal part of the parent organization zProject personnel, property, and equipment are often simply transferred from the dying project to the newly born division zThe transition from project to division demands a superior level of political sensitivity for successful accomplishment

6 Termination by Integration zThis method of terminating projects is the most common way of dealing with successful projects, and the most complex zThe property, equipment, material, personnel, and functions of the project are distributed among the existing elements of the parent organization

7 Termination by Integration zIn general, the problems of integration are inversely related to the level of experience that the parent or client has had with: ythe technology being integrated ythe successful integration of other projects, regardless of technology

8 Termination by Integration zA few of the more important aspects of the transition from project to integrated operation that must be considered: yPersonnel - where will the team go? yManufacturing - is the training complete? yAccounting/Finance - have the project’s account been closed and audited? yEngineering - are all drawings complete and on file? yInformation Systems/Software - has the new system been thoroughly tested? yMarketing - is the sales department aware of the change?

9 Termination by Starvation zThis type of project termination is a “slow starvation by budget decrement” zThere are many reasons why senior management does not wish to terminate an unsuccessful or obsolete project: yPolitically dangerous to admit that one has championed a failure yTerminating a project that has not accomplished its goals is an admission of failure

10 When to Terminate a Project zSome questions to ask when considering termination: yHas the project been obviated by technical advances? yIs the output of the project still cost-effective? yIs it time to integrate or add the project as a part of regular operations? yAre there better alternative uses for the funds, time and personnel devoted to the project? yHas a change in the environment altered the need for the project’s output?

11 When to Terminate a Project zFundamental reasons why some projects fail to produce satisfactory answers to termination questions: yA project organization is not required yInsufficient support from senior management yNaming the wrong person as project manager yPoor planning zThese and a few other reasons, are the base cause of most project failures zThe specific causes derive from these fundamental issues

12 The Termination Process zThe termination process has two distinct parts zFirst is the decision whether or not to terminate zSecond, if the decision is to terminate the project, the decision must be carried out

13 The Decision Process zDecision-aiding models for the termination decision fall into two generic categories: y1. 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 y2. Models that base the decision on the degree to which the project meets the goals and objectives set for it zJust 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 zThe actual termination can be planned and orderly, or a simple hatchet job zSpecial termination managers are sometimes useful in completing the long and involved process of shutting down a project zThe primary duties of the manager in charge of termination can be encompassed in nine general tasks

15 The Implementation Process zDuties of the termination manager: yEnsure completion of the work, including tasks performed by subcontractors yNotify the client of project completion and ensure that delivery is accomplished yEnsure that documentation is complete including a terminal evaluation of the project deliverables and preparation of the project’s Final Report yClear for final billings and oversee preparation of the final invoices sent to the client

16 The Implementation Process zDuties of the termination manager (cont.): yRedistribute personnel, materials equipment, and any other resources to the appropriate places yClear project with legal counsel or consultant yDetermine what records to keep yAscertain any product support requirements, decide how each support will be delivered, and assign responsibility yOversee the closing of the project’s books

17 The Implementation Process zMost project managers delay the personnel reassignment/release issue as long as possible for three main reasons: y1. A strong reluctance to face the interpersonal conflicts that might arise when new assignments and layoffs are announced y2. Worry that people will lose interest and stop work on the project as soon as it becomes known that termination is being considered y3. 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 zThe final report is the history of the project zIt is a chronicle of the life and times of the project, a compendium of what went right and what went wrong zThe required information is contained in the master plan, all project audits, and evaluations zThe precise organization of the report is not of great concern; the content is

19 The Final Report zSeveral Subjects should be addressed in the final report: yProject performance yAdministrative performance yOrganizational structure yProject and administrative teams yTechniques of project management

20 The Final Report zFor each element covered in the final report, recommendations for changing current practice should be made and defended zEqually important are comments and recommendations about those aspects of the project that worked unusually well zThe fundamental purpose of the final report is to improve future projects

21 Summary zA project can be terminated in one of four ways: by extinction, addition, integration, or starvation zMaking a decision to terminate a project before its completion is difficult, but a number of factors can be of help in reaching a decision zStudies have shown that the factors associated with project success are different for different industries and the various types of projects

22 Summary zMost projects fail for one or more of the following reasons: yInappropriate use of the project form of organization yInsufficient top management support yNaming the wrong project manager yPoor planning

23 Summary zSuccess-related factors, or any factors management wishes, can be used in termination decision models zSpecial termination managers are often used, and needed, for closing out projects zThis task, consisting of eight major duties, is a project in itself

24 Summary zThe project Final Report incorporates the process knowledge gained from the project zIn addition to preservation of project records, the Final Report embodies the experience from which we learn zThe 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

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