LECTURE 9: PROJECT CLOSEOUT AND

TERMINATION

NCS-329 Dr. Fakhra Jabeen

 Learning Objectives
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 After completing this chapter, you should be able to:

1. Distinguish among the four main forms of project termination.
2. Recognize the seven steps in formal project closeout.
3. Understand key reasons for early termination of projects.
4. Know the challenges and components of a final project report.

 PMBOK core concepts covered in this topic:

 Close Project
 Close Procurements

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 Where We Are Now

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 Project Life Cycle

 Conceptualization - the development of the initial goal and technical

specifications.
 Planning – all detailed specifications, schedules, schematics, and plans are
developed.
 Execution – the actual “work” of the project is performed.
 Termination – project is transferred to the customer,
resources reassigned, project is closed out.
Man Hours

Conceptualization Planning Execution Termination

4
 Project Life Cycles and Their Effects
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Client Interest

Project Stake $

Resources

Creativity

Uncertainty

Conceptualization Planning Execution Termination

 Triple Constraint of Project Success
6
Quadruple
Client
Acceptance
Budget  Have we been
successful in each of
these?

Success
 We have reached a
natural termination point

 Let’s start the pizza

Schedule Performance party!
 Elements of Project
Closeout Management
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Gaining Harvesting the

Finishing Handing
Over the Acceptance Benefits
The Work
Product for the Reviewing
Product How
It All Went

Putting it All to Bed

Disbanding the Team

 Project Termination
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The four main reasons for project termination are:

 Extinction
 Addition
 Integration
 Starvation

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 1. Termination by Extinction.
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 This process occurs when the project is stopped due to either a

successful or an unsuccessful conclusion.
 In the successful case, the project has been transferred to its
intended users and all final phase-out activities are conducted.
 Whether successful or not, during termination
 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.

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 2. Termination by addition.
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 This approach concludes a project by institutionalizing

it as a formal part of the parent organization.
 For example, suppose a new hardware design at Apple
Computer has been so successful that the company, rather
than disband the project team, turns the project
organization into a new operating group.
 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.

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 3. Termination by integration
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 The project’s resources, including the project team, are

reintegrated within the organization’s existing structure
following the conclusion of the project.
 In both matrix and project organizations, personnel
released from project assignments are reabsorbed
within their functional departments to perform other
duties or simply wait for new project assignments.

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 4. Termination by starvation
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 Insufficient funds/budget in hand to carry on with the

project.
 Could be willful form of neglect in which the project
budget is slowly decreased to the point at which the
project cannot possibly remain viable.
 Political reasons.
 Lookout for new project sponsor or wait for better
economic situation

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 Seven Steps in Formal Project Closeout
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 Finishing the work

 Handing over the project
 Gaining acceptance for the Project
 Harvesting the benefits
 Reviewing how it all went
 Putting it all to bed
 Disbanding the team

Dr. Fakhra Jabeen ISET DEPT

4/21/21
 Implementing Closedown

1. Getting delivery acceptance

from the customer.
2. Shutting down resources
and releasing to new uses.
3. Reassigning project team members.
4. Closing accounts and paying all bills.
5. Evaluating the project team, project team members,
and the project manager.

14–14
 Major Tasks of Project Closure

1. Evaluate if the project delivered the

expected benefits to all stakeholders.
 Was the project managed well?
 Was the customer satisfied?
2. Assess what was done wrong and what
contributed to successes.
3. Identify changes to improve
the delivery of future projects.

14–15
 Project Monitoring Components

 A review of why the project was selected.

 A reassessment of the project’s role
in the organization’s priorities.
 A check on the organizational culture to ensure it facilitates the
type of project being implemented.
 An assessment of how well the project team is functioning well
and if its is appropriately staffed.
 A check on external factors that might change
where the project is heading or its importance.
 A review of all factors relevant to the project
and to managing future projects.

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 Project Closure

 Types of Project Closure

 Close-out Plan:
 Normal
Questions to be Asked
 What tasks are required to
 Premature
close the project?
 Perpetual  Who will be responsible
 Failed Project for these tasks?
 Changed Priority  When will closure begin
and end?
 How will the project be
delivered?

14–17
 Closeout Paperwork
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Documentation
Legal
Cost
Personnel

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 Early Termination Decision Rules
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 Understand key reasons for early termination of

project.
 We may choose to terminate ongoing projects when:
 When costs exceed business benefits
 When the project no longer meets strategic fit criteria
 Deadlines are continually missed
 Technology evolves beyond the project’s scope
 The Top 10 Signs of Project Failure
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10. Best practices and lessons learned are ignored

9. Project lacks people with appropriate skills
8. Sponsorship is lost
7. Customers are resistant
6. Deadlines are unrealistic
5. Business needs change
4. Chosen technology changes
3. Project changes are poorly managed
2. Scope is ill-defined
1. Project managers don’t understand users’ needs
 Lessons Learned Meetings
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Common Errors
 Misidentifying systematic errors (identifying error as feature or

something else)
 Misapplying or 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

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 Guidelines for Project Closeout
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 Include closeout in the WBS and the schedule

 Use a closeout checklist
 Have a detailed closeout plan
 Preserve the team identity and continue with weekly status meetings
 Provide performance feedback
 Reward team members
 Take a trip for feedback and formal closeout with remote team
 Create a final project report to communicate to stakeholders
 Schedule a formal closeout review meeting or project audit
 Document lessons learned
 Celebrate success
 Lessons Learned Report
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 Example Report:
 Final Project Report
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The final project report is the administrative record of the completed project, identifying all
its functional and technical components, as well as other important project history.
Elements:
1. Project performance
2. Administrative performance
3. Organizational structure
4. Team performance
5. Project management techniques
6. Benefits to the organization and customer

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 Top 10 Signs of IT Project Failure
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1. Best practices and lessons learned are ignored.

2. Project lacks people with appropriate skills.
3. Sponsorship is lost.
4. Users are resistant.
5. Deadlines are unrealistic.
6. Business needs change.
7. Chosen technology changes.
8. Project changes are poorly managed.
9. Scope is ill-defined.
10. Project managers don’t understand users’ needs.

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26

Project Termination Issues

Emotional Intellectual

Staff Client Internal External

 Project Termination Issues - Emotional

Emotional
Staff
Fear of no future work
Loss of interest in remaining tasks
Loss of project-derived motivation
Loss of team identity
Selection of personnel to be
reassigned
Diversion of effort
Client
Change in attitude
Loss of interest in project
Change in personnel dealing
with project
Unavailability of key personnel

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 Project Termination Issues – Intellectual

Intellectual
Internal External
Identification of remaining Agreement with client on remaining
deliverables deliverables
Certification needs Agreement with suppliers on outstanding
commitments
Identification of outstanding Communicating closure
commitments
Control of changes to project Closing down facilities
Closure of work orders and work
packages
Disposal of unused material

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 Early Termination for Projects
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What makes a project a candidate for early termination? A major

change in
1. Image, political, and cost factors
2. Task-team issues
3. Sponsorship
4. Economics
5. Business, political, technological environment
6. User demand
 Claims & Disputes
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Two types of claims:

Ex-gratia claims
 These are claims that a client can make when there is no contractual basis
for the claim but when the client thinks the project organization has a moral
or commercial obligation to compensate
Default by the project company
 When contractual claims are defaulted due to the failure of a project to be
completed and delivered,
Resolved by:
Arbitration
 Binding
 Non-binding
Standard litigation
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 Protecting Against Claims
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 Consider claims as part of the project plan.

 Verify stakeholders know their risks.
 Keep good records throughout the life cycle.
 Keep clear details of change orders.
 Archive all correspondence.

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 Summary
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1. Distinguish among the four main forms of project management.

2. Recognize the seven steps in formal project closeout.
3. Understand key reasons for early termination of projects.
4. Know the challenges and components of a final project report.

Copyright ©2016 Pearson Education, Ltd.