Project Termination Types of terminations How and why projects terminate Typical termination activities Need for a project history

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

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.

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

Decision Structure for a Termination Decision

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

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

Four Varieties of Termination (cont’d) “Termination by starvation” Withdrawal of “life support” Can save “face,” avoid embarrassment, evade admission of defeat

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

Termination Activities (cont’d) Accounting and Finance Accounts closed and audited Resources transferred Engineering Drawings complete/on file Change procedures clarified

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

A Design for Project Termination

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

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

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

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