Project termination consists of all activities consistent with closing out the

project. It is a process that provides for acceptance of the project by the

project’s sponsor, completion of various project records, final revision and
issue of documentation to reflect its final condition, and the retention of
essential project documentation. There are four chief reasons for projects to
be terminated: termination by extinction, termination by addition,
termination by integration, and termination by starvation.
Termination by extinction occurs when the project is stopped due to its
either successful or unsuccessful conclusion. In the successful case, the
project has been transferred to its intended users and all final phase-out
activities are conducted. The project’s final budget is audited; team
members receive new work assignments, and any material assets the project
employed are dispersed or transferred according to company policies or
contractual terms.
Termination by addition concludes the project by institutionalizing it as a
formal part of the parent organization. In effect, the project has been
“promoted” to a formal, hierarchical status within the organization. The
project has indeed been terminated, but its success has led to its addition to
the organizational structure.
Termination by integration represents a common, but exceedingly
complicated, method for dealing with successful projects. The project’s
resources, including the project team, are reintegrated within the
organization’s existing structure following the conclusion of the project.
Termination by starvation can happen for a number of reasons, such as
political, a placated sponsor, or general budget cuts. Meredith and Mantel
argue that termination by starvation is not an outright act of termination at
all, but rather a willful form of neglect by slowly decreasing the project
budget to the point where the project cannot possible remain viable.
When termination occurs without completing objectives, there are
several emotional elements involved for those connected to the project. The
most obvious is that the termination represents a failure for those involved.
Individuals may feel they are personally responsible for the project
termination and may become depressed as a result. Leadership and
management must have a plan in place to mitigate the negative effects of
termination on employee morale. For the visionary or originator of the
project concept, their personal vision has to be relinquished (at least for the
time being). Motivated pioneers will feel all their efforts were in vain, taking
it as a sign of their demise or lack of importance within the organization. The
project was their personal “pet project”, and without it, their sense of
responsibility will take a dive. Additionally, the ego, pride, reputation of
project team members may be injured. The team members may feel a loss of
confidence from the organization’s leadership and feel inadequate and
threatened with reprisals. Lastly, there may be anxiety over job loss or
transfers when the team is dismantled. It is human nature to feel as if one is
no longer needed and to start seeking opportunities elsewhere within the
organization or outside.
Project termination can have a detrimental effect on those team
members involved with the project from the very beginning. The dismantling
of the project may mean you will be transferred (possibly to a position you
do not desire) or you may no longer be needed. Moreover, depending on the
reasons for the failure, the termination may reflect badly on your own
reputation and impede the possibility of promotion or reassignment. It is
important for organizations to have systems in place to help individuals and
teams cope with project termination. Although the termination may be
purely a business decision, it is incumbent on everyone involved to share in
the “pain” associated with termination, no matter its cause and effect.